The Flowr Corporation Announces Partnership with Terrace Global to Fund the Development and Operations of Holigen

• Flowr enters into a partnership agreement with Terrace Global to develop Flowr’s outdoor operations in Aljustrel, Portugal
• The parties expect Terrace Global to fund at least C$3 million under this Partnership

TORONTO, May 14, 2020 (GLOBE NEWSWIRE) -- The Flowr Corporation (TSX.V: FLWR; OTC: FLWPF) (“Flowr” or the “Company”) announces it has entered into an Equity Line and Profit Sharing Agreement (the “Agreement” or “Partnership”) with Terrace Global Inc. (TSX.V:TRCE) (“Terrace Global”) a Canadian company focused on the development of international cannabis assets, whereby the two companies will work together to develop finished cannabis products for the European medicinal market. As part of the Partnership and under the terms of the Agreement, Terrace Global has agreed to fund the operations and certain capital expenditures at the Company’s outdoor facility located in Aljustrel, Portugal in exchange for common shares and warrants in Flowr to be issued in certain intervals during 2020 and sharing of net proceeds from the sale of any medical cannabis products produced from the facility.  The parties expect Terrace Global to fund at least C$3 million under this Partnership.

“We are very pleased to announce this partnership with Terrace Global who bring a great deal of global cannabis industry experience and expertise to the table which will help us further advance our efforts in commercializing our Holigen business as we embark on one of the first large scale outdoor cultivation projects of medicinal cannabis in Europe,” said Vinay Tolia, Flowr’s Chief Executive Officer. “There is an increased level of comfort in this partnership given prior successful ventures and working relationships with senior leadership of both Terrace Global and Flowr,” added Mr. Tolia.

The Partnership allows for both companies to participate in the planting, growing, cultivation, harvesting and production of high-quality medical cannabis. The Agreement contemplates advancing the planting of up to 12 hectares of land at Aljustrel in 2020 to cultivate medicinal cannabis for the European market.  The goal of the Partnership is to develop various strains suitable for the European medicinal market and planting mechanisms which will determine the most effective and efficient systems to grow cannabis outdoors in Portugal.  Flowr recently exported to Portugal approximately 14,000 clones to support Holigen’s 2020 planting season.  The cultivars which were shipped include Flowr’s flagship strain BC Pink Kush as well as BC Louis XII and BC Tahoe OG, which were strains successfully grown in Flowr’s Canadian outdoor operation, Flowr Forest, and which will be launched in the Canadian recreational market soon as new products.  All three of these strains have THC content in excess of 20%.