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Flower One Holdings Inc. (OTCMKTS: FLOOF) Obtains a Loan Modification Agreement with an Existing Shareholder for Aggregate Proceeds of $10.1M



Flower One Holdings Inc. (OTCMKTS: FLOOF) produces various product derivatives ranging from pre-rolls, oils, concentrates, distillates, edibles and topicals. The company has more than 20 years of greenhouse operational excellence. It is well–known for its best-in-class cannabis operators, consistency, reliability and the ability to scale – up fulfilment to a growing number of industry-leading cannabis brands.

The leading cannabis cultivator and producer is the sole supplier of cannabis products in Nevada’s retail cannabis market. Thanks to the use of three channels: reselling, whole-selling, and private and white labels. The three are also strengthened by an established, NLV Organics branded cannabis product line.

The Advancements in its Ongoing Debt Restructuring

In its determination to reduce its loan and interest obligations, Flower one has reported a term loan financing with an existing shareholder to the tune of $10.1M. It has also embraced an additional loan modification agreement, which according to the President and CEO, Kellen O’Keefe, will enable them to complete the immediate facility improvements required.

“We appreciate the support of our term lender as they continue to work with us to find creative solutions that allow us the runway required to achieve positive cash flow,” Araxie Grant, Flower One’s CFO commented. The company’s determination is in reducing the cost of capital and interest obligations and eventually the cash flow.

Other additional measures the company has taken to reduce the overall operating costs include the introduction of automation and new equipment in various areas.

What Does Flower One’s Nevada’s Footprint Entail?

Flower One is the most significant cannabis full-service brand fulfilment partner in Nevada. It has built an industry-leading team whose primary focus is becoming the first high-quality, low-cost brand fulfilment partner. That said, several flagship facilities have supported the company’s footprint in Nevada. This includes a 400,000 square-foot high-tech greenhouse and 55,000 square-foot production facility. There is also a 25,000 square-foot indoor cultivation facility and commercial kitchen.

Meanwhile, at the core of everything the company does, it recognized the need for collaboration, citing that it is the only way to tap into different professionals. Furthermore, their values and principles are built around sustaining a company culture that remains in touch with the cannabis consumer.

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