Flower One Holdings Inc. FONE FLOOF F, the leading cannabis cultivator and producer in Nevada, received a $5 million loan from RB Loan Portfolio II, LLC.
“This capital infusion will enable us to complete the first phase of capital expenditures and provide working capital to the business. We are grateful for the runway this will provide as we work towards our goal of achieving positive cash flow,” stated Kellen O’Keefe, president & CEO of Flower One.
The company and certain of its subsidiaries are parties to an existing loan agreement with the term lender with respect to the company’s existing $45.65 million term debt, secured by the facility at 3950 N. Bruce St., North Las Vegas, Nevada. The company’s receipt of the loan was facilitated by the assignment to an insider of the company, of a portion of the interest owing in the term debt from the term lender in the amount of $5 million. The loan has made an additional $5 million available to the company with respect to the term debt. The maturity date of the term debt is June 30, 2023.
The company has determined that the loan is exempt from the formal valuation and minority approval requirements applicable to related party transactions under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”) pursuant to the financial hardship exemptions set forth in Sections 5.5(g) and 5.7(1)(e) of MI 61-101.
“We have been working diligently with our lenders to find solutions that position Flower One for future success. Our goal is to ensure we have the appropriate capital structure that enables the company to deliver growth and shareholder value over the long term,” stated Araxie Grant, CFO of Flower One.
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