British Columbia cannabis cultivator The Flowr Corp. is selling “substantially all” of its assets to Avant Brands K1 as part of a sale and investment solicitation process after entering creditor protection in late October.
The asset sale is worth 5.1 million Canadian dollars ($3.7 million), plus the amount of a debtor-in-possession loan originally worth CA$2 million from Avant Brands K1 and assumed liabilities.
Avant Brands K1 (previously known as 1000343100 Ontario) is 50% owned by Canadian cannabis producer Avant Brands, and the purchase price includes CA$1.1 million in Avant shares.
Flowr said Thursday that the asset sale still requires court approval, expected later this month.
In a news release, Avant Brands CEO Norton Singhavon said Avant has “always viewed (Flowr’s) Kelowna facility as a top-tier and world class asset that would be an ideal fit for the Avant portfolio.”
Avant said the facility in British Columbia’s Okanagan region will increase its annual production capacity by about 60%.
After the asset sale is complete, Flowr “will distribute the proceeds of the sale to its stakeholders in accordance with the court-supervised (Companies’ Creditors Arrangement Act) process, with a minimal amount to be retained in order to facilitate the orderly sale, wind-up, dissolution or other administrative proceeding with respect to Flowr Corp.,” wrote Flowr CEO Darren Karasiuk in a statement to MJBizDaily.
Before entering creditor protection, Flowr had cut staff, sold a research facility and a cultivation site, and sold off international assets.