Growth Plans for The Flowr Corporation (TSX.V: FLWR) (OTC: FLWPF) Include Harvesting, Selling Premium Cannabis Seeds and Clones

• Production of more than 3.2 million high-quality cannabis clones is expected once initial cultivation facility is complete
• Global cannabis market projected to reach nearly $155 billion by 2025
• Expanded sales license from Health Canada received, permitting sale of genetic material

The Flowr Corporation (TSX.V: FLWR) (OTC: FLWPF), a Canadian licensed producer of premium cannabis products, plans to expand its product line by selling a selection of its premium, high-quality cannabis in clone and seed form to customers both at home and abroad. Company Co-CEO Tom Flow announced the venture in a news release that highlights Flowr’s emphasis on growing only premium cannabis using non-irradiated production methods that generate high crop yields at low operating costs.

“This is an exciting and potentially very big market for Flowr that is a natural extension of our high-yield, high-quality approach to cultivation,” Flow stated in the release (http://ibn.fm/XNq09). “Growing great cannabis starts with great genetics and clean healthy plants, something few companies are able to provide. As we ramp up production, we believe Flowr will be able to offer the select cultivars we use to produce our premium cannabis to cultivators globally.”

Canada opened up recreational cannabis to adult users in October 2018 and has since released new regulations governing cannabis-infused edibles and beverages, along with cannabis concentrates. Those products are set to be legalized in mid-October 2019. Most Canadian provinces allow adults to grow up to four cannabis plants per household, which opens the door to yet another market, although many budding cannabis home cultivators are unsure where to begin. However, one man in Alberta, Canada, featured in a CBC article (http://ibn.fm/BMF87), has launched his own website offering tips and info for cannabis beginners, pointing out that “quality genetics” is “the secret to growing good cannabis.”

Flowr’s flagship facility, an approximately 85,000-square-foot campus on seven acres in Kelowna, British Columbia, is engineered to grow premium cannabis in rooms that meet pharmaceutical industry production standards for cleanliness. This, along with exacting protocols designed by the Flowr team, enables Flowr to grow cannabis that meets Health Canada’s stringent standards without treating it with the taste- and smell-killing gamma irradiation that most other producers use to clean their product. A majority of current Canadian cannabis consumers are willing to pay more for premium products that are grown and produced under the country’s federal regulations, according to Deloitte’s 2018 Cannabis Report (http://ibn.fm/jLPg3).

Flowr Corporation, which in December 2018 received an expanded sales license from Health Canada permitting it to sell genetic material, expects that its highly efficient cultivation process will allow it to produce more than 3.2 million high-quality clones on an annualized basis once its initial cultivation facility is completed by the end of the third quarter of 2019. These clones will be incremental to Flowr’s cultivation process, which means that this new revenue stream will be produced in addition to what the company actually needs for its retail and medical production.

Flow indicated that opportunities for Flowr exist in four key markets: Canadian license holders seeking high-quality genetics as they expand production; micro-cultivators, a new Health Canada license subclass that can operate small “craft” cultivation facilities; producers in international markets; and individuals purchasing through provincial or licensed private retailers for personal use (home growers). The recent addition of Deron Caplan, the first person in North America to earn a doctorate in philosophy with research focused on cannabis production, as Flowr’s director of plant science reinforces the company’s commitment to the pursuit of excellence in cannabis cultivation techniques and genetics (http://ibn.fm/v4AfG).

Flowr also announced that its premium cannabis products are now for sale through licensed private retailers in Manitoba, which expands the company’s reach to five provinces (http://ibn.fm/Rj61Z). Flowr previously announced supply agreements with provincial authorities in British Columbia, Nova Scotia and Ontario; sales through a private dispensary in Saskatchewan; and entry into a medical cannabis supply agreement with Shoppers Drug Mart (http://ibn.fm/YLoix).

According to Stratistics MRC, the global cannabis market accounted for $10.39 billion in 2017 sales and is expected to reach $154.82 billion by 2026, growing at a compound annual growth rate of 35 percent during the forecast period. Some of the key factors propelling the market growth are the medicinal properties of cannabis, increasing legalization of cannabis and advances in genetic development and intellectual property related to cannabis (http://ibn.fm/EmIQu).

Flowr’s purpose-built cultivation facilities, developed with proprietary, patent-pending systems, are designed to deliver yields targeted at 425 grams per square foot by the end of 2022, which is three-times more efficient than the industry average of approximately 150 grams per square foot. By optimizing yield, Flowr may produce significantly more cannabis flower on a smaller footprint than other producers, thus generating significantly higher revenue per square foot and keeping costs much lower, leading to greater margins.

For more information, visit the company’s website at www.Flowr.ca

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