Flowr Withdraws $95M Offering, Announces Smaller Capital Raise

The Flowr Corporation FLWPF said Friday that it withdrew a CA$125 million ($95.3 million) public offering due to market conditions and is assessing the timing of its Nasdaq listing. 

The cannabis company followed up Monday with the announcement of an agreement with a group of underwriters led by GMP Securities for the acquisition of 10.61 million units of the company at $4.10 each, for gross proceeds of $43.5 million. 

Each unit will consist of one common share of the company and one common share purchase warrant, according to Flowr.

In addition, each warrant carries the right to buy one common share in the 24 months following the closing of the offering at a price of $5 per warrant share.

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Flowr said it's giving the underwriters an over-allotment option to buy up to 1.59 million additional units at the offering price in the 30 days after closing.

If the option is used in full, the company said it would raise an additional $6.53 million in gross proceeds for a total of $50.03 million.

Flowr plans to use the net proceeds to partially finance its acquisition of around 80% of the equity interest of Holigen Holdings Limited; to back the construction of some of Flowr and Holigen cultivation and production facilities; and for general corporate purposes.

The offering is expected to close Aug. 8 and is subject to conditions including the approval of the TSX Venture Exchange. 

Flowr shares were rallying by 21.44% to $3.73 at the time of publication Monday. 

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