The Flowr Corporation (TSX.V: FLWR) (OTC: FLWPF) Does Not Irradiate its Cannabis; 80 Percent of LPs Do

• Clean, controlled cultivation eschews use of radiation to destroy pests and pathogens
• Analysts at Jefferies recently initiated coverage of FLWR
• Flowr has applied for Nasdaq Listing

The Flowr Corporation (TSX.V: FLWR) (OTC: FLWPF) is growing cannabis with TLC as well as THC. The Health Canada Licensed Producer (“LP”) of cannabis, founded by MedReleaf co-founder Tom Flow and a team of industry pioneers, is out to generate premium, non-irradiated product at high yields. The company expects its ability to produce clean cannabis at consistently high quality to be a crucial differentiating factor as the medical and recreational markets in Canada develop.

Its shares may soon be trading on the Nasdaq. The company recently submitted an application to list its common shares on the Nasdaq Capital Market and has filed a Form 40-F Registration Statement with the U.S. Securities and Exchange Commission (“SEC”) (http://ibn.fm/WHWYs). The listing of Flowr’s shares on the Nasdaq will be subject to a number of regulatory requirements, including registration of the common shares with the SEC and a determination by the Nasdaq that Flowr has satisfied all applicable listing requirements. Subject to approval for listing, the company’s common shares will continue to trade on the TSX Venture Exchange (“TSX.V”) under ‘FLWR’. A trading date will be made public once all regulatory formalities are satisfied.

To the Flowr Corporation, cannabis is not just a commodity called ‘weed’. The company expects that the cannabis market will bear similarities to the market for wines. Both champagne and altar wine are made from grapes, but their quality and prices vary considerably. Flowr wants to produce “champagne cannabis.” As a result, it has set out to cultivate its cannabis in a controlled environment. Its flagship facility, an 84,000-square-foot campus on seven acres in Kelowna, British Columbia, has been engineered to grow premium cannabis in rooms that meet pharmaceutical industry production standards for cleanliness. Flowr knows that the psychoactive and therapeutic experience delivered by its product depends a lot on how it is grown, including how much light and water it’s given, when it’s pruned and when it’s given nutrients. As noted by CEO Vinay Tolia (http://ibn.fm/wsehA), “The plant needs a lot of TLC.”

Besides, getting Health Canada to approve facilities and product can be challenging. The Health Canada testing regime is so strict that many growers are unable to pass the microbial and yeast level standards. Consequently, they resort to a process called irradiation. Their final product is bombarded with gamma rays, which kill the mold, yeast and bacteria, but, as Tolia points out, would be the equivalent of telling consumers that it’s okay to eat moldy bread because it’s been exposed to gamma rays, something which, perhaps, they’ve only come across in sci-fi movies. The gamma radiation is typically produced by radioactive isotopes of cobalt. Companies that cannot produce clean cannabis, the way Flowr does, are compelled to go down this road, and approximately 80 percent of them do, according to Cannabis Tech (http://ibn.fm/PbvK5).

Exposing cannabis to radioactivity also changes the terpene profile of the plant. A recent study, published in a leading pharmacological journal, concluded that “…irradiation had a measurable effect on the content of various cannabis terpenes, mainly on the more volatile monoterpenes. In general, reduction of affected terpenes was between 10 and 20%, but for some components, this may be as much as 38%.” Terpenes are substances that are believed to be essential to the effectiveness of cannabinoids, a recognized phenomenon that has been dubbed the “entourage effect.”

Flowr’s cultivation program is led by co-founder and President Tom Flow, an industry pioneer who’s widely recognized for his cannabis thought leadership and expertise building and operating cannabis cultivation facilities. Flow also co-founded MedReleaf and designed, built and set up protocols for that company’s flagship Marcum cultivation facility. MedReleaf was acquired by Aurora for approximately C$3 billion. Flow and his team have designed and built a total of 17 cultivation facilities and secured three producer’s licenses under various Canadian regulatory regimes.

In addition, analysts at Jefferies have now initiated coverage of several cannabis stocks, including positive coverage of FLWR, suggesting that the global cannabis industry could reach $130 billion by 2029 (http://ibn.fm/pix0e).

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

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