Nevada cannabis producer Flower One extends maturity date for $6M in debt

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Nevada cannabis cultivator-producer company Flower One Holdings amended the terms of a short-term debt agreement to extend the maturity date to the end of this year.

Flower One initially took the one-year, 15% loan from a private lender in March 2020 for $10 million, then amended it that July to add an additional $1 million and extend the term by six more months, according to a regulatory filing.

In January 2021, $5 million of the short-term debt was converted into shares.

At the same time, the interest date for the remaining debt was reduced to 10% and the maturity date postponed to July 2022.

The new maturity date is Dec. 31, 2022.

Las Vegas-based Flower One raised $5 million in a private placement in September 2021 and took on an additional $10.1 million in term loan financing from a shareholder in February.

In late June of this year, that term debt – then worth $45.7 million – was modified to:

  • Defer interest payments.
  • Reduce cash interest payments.
  • Extend the maturity date.
  • Pay down $9 million.

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At the time, Flower One CEO Kellen O’Keefe called the restructuring “a major step in our turnaround plan, as it will provide the company with additional liquidity and a significant runway to continue our operational restructuring efforts, and position the company for sustainable growth.”

Shares of Flower One trade on the Canadian Securities Exchange as FONE and on U.S. over-the-counter markets as FLOOF.