The Flowr Corporation (TSXV:FLWR) (OTCPK:FLWPF) has announced that it has wholly acquired Holigen Holdings, boosting Flowr stock over 3.5% this morning.
The company confirmed in a Tuesday morning press release that it had completed the acquisition of the remaining 80.2% interest in Holigen Holdings by way of a share purchase agreement. The acquisition will add production facilities in Austria and Portugal to Flowr's portfolio, with the Portuguese facility allowing for an additional 500,000 kilograms of production capacity.
Flowr, based in Toronto, builds and operates large-scale, GMP-designed facilities that utilize proprietary growing methods to produce high-quality cannabis for recreational and medicinal usage.
"The combination of our extensive cannabis cultivation know-how and Holigen's extensive pharmaceutical experience has the potential to create tremendous value. With an expected annual capacity of 500,000 kilograms, the Aljustrel cultivation asset in Portugal should allow us to be a significant producer in the global medical cannabis and active pharmaceutical ingredient (API) markets, initially in Europe and Australia-Asia," said Vinay Tolia, Flowr's CEO.
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A Rocky Year for Flowr Stock
Flowr stock has had a somewhat rocky year. Having gone as low as $2.18 last December, it charged up over 180% to a March high of $6.30 following positive sales growth despite its premier cultivation facility in Kelowna only being 20% operational. However, the CannTrust regulatory scandal that rocked the market over the summer subsequently brought Flowr stock crashing back down as it lost over 60% of its value since late June.
Reason to Be Optimistic
Investors in Flowr stock will be hoping that today's upward trajectory continues, and they certainly have reason to be optimistic. The company's Kelowna facility is expected to be fully operational in the near future, and once completed, it has the capacity to produce over 50,000 square-kilograms of cannabis flower annually."With the completion of this acquisition, the subsequent ramp-up of production at Aljustrel, and the continued buildout of our campus in Kelowna, Flowr is strategically positioned to service the global cannabis market from an efficient footprint."
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Featured image: DepositPhotos © karnauhov
