TORONTO, Feb. 11, 2019 /CNW/ – Flower One Holdings Inc. ("Flower One" or the "Company") (CSE: FONE) (OTCQB: FLOOF) today announces that it has entered into a Master Lease Agreement (the "Agreement") with Reich Bros Commercial Finance, for up to US$30,000,000 in lease financing for certain equipment at its 455,000 square-foot greenhouse and production facility in North Las Vegas, Nevada.
"As Flower One prepares to commence operations at our greenhouse and production facility, this lease financing provides us with additional financial flexibility." stated Geoff Miachika, Flower One Chief Financial Officer.
The Agreement has a five-year term, with the first 12 monthly payments being the equivalent of interest only, followed by forty-eight equal payments, such that all amounts advanced under the lease facility are fully amortized by month 60. The Agreement includes a buyout right upon expiration of the term, and early buyout options at months 13, 25 and 37, at the Company’s discretion. The Company has completed an initial draw of US$10 million.
About Flower One Holdings Inc.
Flower One Holdings is sharply focused on quickly becoming the leading cannabis cultivator, producer and innovator in the highly lucrative Nevada market. Flower One owns and operates a 25,000 square foot cultivation and production facility in North Las Vegas, with nine grow rooms, and owns the established NLV Organics consumer brand of cannabis products. The Company is also rapidly converting its 455,000 square foot greenhouse and production facility, which is the largest in the State of Nevada, for cultivating and processing high-quality cannabis at scale. Combined, the flagship greenhouse facility and production facility (once fully operational) and the North Las Vegas facility provide Flower One with 480,000 square feet of capacity for cultivation and processing, production and high-volume packaging of dry flower, cannabis oils, concentrates and infused products. The Company is fully licensed for medical marijuana cultivation and production, as well as recreational marijuana cultivation and production in the state of Nevada and currently holds licensing agreements with their Brand Partners Flyte Concentrates, Rapid-Dose Therapeutics, Old Pal, Palms and HUXTON.
Flower One’s common shares are traded on the Canadian Securities Exchange under the symbol "FONE" and in the United States on the OTCQB under the symbol "FLOOF." For more information visit: https://flowerone.com
About Reich Bros Commercial Finance
Reich Bros Commercial Finance invests capital with growth-oriented businesses that provide infrastructure or ancillary services to the cannabis industry. Reich Bros Commercial Finance makes senior secured loans against real estate, equipment, intellectual property and branded products, predominately in approved U.S. jurisdictions. Reich Bros Commercial Finance provides creative, flexible capital solutions for legal cannabis operations including equipment financing, working capital loans and expansion financing. The company can structure financings from $500,000 to $30 million as secured loans, sale leasebacks, capital leases, term loans, and other structured transactions that are customized to meet the borrower’s needs.
Cautionary Note Regarding Forward Looking Information
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in Flower One’s public documents. When used in this news release, words such as "will, could, plan, estimate, expect, intend, may, potential, believe, should," and similar expressions, are forward- looking statements.
Forward-looking statements may include, without limitation, statements relating to the execution of the Company’s strategy and intent to quickly become the leading cannabis cultivator, producer and innovator in Nevada, timing of Flower One’s production, the scale and capacity of Flower One’s cultivation, processing and custom packaging facilities in Nevada.
Although Flower One has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects that are engaged in activities currently considered illegal under United States federal law; changes in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. Flower One Holdings disclaims any intention or obligation to update or revise such information, except as required by applicable law.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR THEIR REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE Flower One Holdings Inc.