Avant Brands to acquire Flowr Group Okanagan for $5 million

Avant Brands Inc. AVTBF AVNT FRA: 1 BU 0 announced that Avant Brands K 1 Inc., formerly known as 1000343100 Ontario Inc., has entered a definitive purchase agreement to acquire all the issued and outstanding shares in the capital of The Flowr Group Okanagan Inc., a subsidiary of The Flowr Corporation FLWPF, in connection with the Companies' Creditors Arrangement Act and its related sales and investment solicitation process.

The Flowr Okanagan facility would increase Avant's overall square footage of cultivation facilities to approximately 185,000 square feet, thereby increasing Avant's annual production capacity by approximately 60%.

The purchase agreement was entered into between the purchaser, Flowr Okanagan and The Flowr Canada Holdings ULC after the completion of an auction process in connection with the sales and investment solicitation process for the Flowr group on December 1, 2022.

The purchase price for the purchased shares pursuant to the purchase agreement will be $5.1 million, equal to $4 million and common shares in the capital of Avant with a value of $1.1 million based on the deemed price per Avant share on the Toronto Stock Exchange for the 10 consecutive trading days prior to the closing of trading on the DIP loan and the value of the assumed liabilities subject to certain adjustments. The closing DIP loan will finance working capital needs of Flowr Okanagan until the closing of the transactions contemplated under the purchase agreement and certain wind-down costs in connection with the Flowr group's CCAA proceedings.

The purchase price will be satisfied through

The consummation of the transaction is subject to satisfaction or waiver of a number of conditions set forth in the purchase agreement, including the receipt of all regulatory approvals and the Ontario Superior Court of Justice Commercial List granting an approval and vesting order. The purchaser had executed a term sheet with Flowr Okanagan, Flowr ULC and Terrace Global Inc., and the purchaser will advance a debtor-in- possession loan in the amount of $2 million in connection with the filing for protection from the court under the CCAA.

Get your daily dose of cannabis news on Benzinga Cannabis. Avant Brands To Purchase The Flowr Group Okanagan, Increasing Its Cannabis Production Capabilities By 60%

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