Flower One secures $5 million loan, increasing term debt

Flower One Holdings Inc. FONE FLOOF F, Nevada’s premier cannabis cultivator and producer, received a $5 million loan from RB Loan Portfolio II, LLC.

“This capital injection will allow us to complete the first phase of capital expenditures and provide working capital to the business. We are grateful for the lead this will provide as we work towards our goal of achieving positive cash flow,” said Kellen O’KeefePresident and CEO of Flower One.

The company and certain of its subsidiaries are parties to an existing loan agreement with the term lender with respect to the existing assets of the company Term debt of $45.65 million, secured by the facility located at 3950 N. Bruce St., North Las Vegas, Nevada. The company’s obtaining of the loan was facilitated by the assignment to a company insider of a portion of the interest owing on the term debt of the term lender in the amount of $5 million. The loan made an additional $5 million available to the company for term debt. The maturity date of the term debt is June 30, 2023.

The Company has determined that the loan is exempt from formal minority review and approval requirements applicable to related party transactions under National Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“NI 61 -101”) due to financial hardship exemptions set out in sections 5.5(g) and 5.7(1)(e) of NI 61-101.

“We have worked diligently with our lenders to find solutions that position Flower One for future success. Our goal is to ensure that we have the appropriate capital structure that enables the company to generate growth and long-term shareholder value,” said Araxia Scholarshipfinancial director of Flower One.

Photo by Mackenzie Marco on Unsplash

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