Flow Beverage Corp. Completes Additional Private Placement

Flow Beverage Corp. (TSX:FLOW; OTCQX:FLWBF) (“Flow” or the “Company”) today announced it has completed the previously announced additional non-brokered private placement of 5,577,000 subordinate voting shares (“SV Shares”) at a price of $0.28 per SV Share to RI Flow LLC (the “Investor”) for gross proceeds of $1,561,560 (the “Additional Offering”), following the initial closing on January 30, 2024 of the non-brokered private placement of 6,473,000 SV Shares at a price of $0.28 per SV Share to the Investor for gross proceeds of $1,812,440 (the “Initial Offering”). The Investor is affiliated with NFS Leasing Canada Ltd., a lender to Flow, and its founder Clifford L. Rucker.

The total proceeds raised from the Initial Offering and the Additional Offering are $3,374,000. This funding is expected to bridge Flow’s working capital and other capital requirements until it reaches profitability and cash flow positive results, which is currently expected for the three-month period ending October 31, 2024 (“Q4 2024”). Flow’s financial outlook has recently improved given $148 million in contracted revenue expected from the signing of co-manufacturing agreements with Joyburst, BeatBox and BioSteel, in addition to ongoing growth in Flow brand net revenue. Revenue from the Joyburst agreement began in February 2024, with commercial production for BeatBox and BioSteel beginning shortly thereafter.

“NFS and Cliff have been wonderful financial partners for Flow over the last six years. They have been an instrumental funding source for our working capital and capital expansion requirements, and we believe their investment in Flow’s equity demonstrates their confidence in our near term and long term prospects. We are currently installing our fourth production line at Aurora and expect a 25% increase in capacity beginning in fiscal Q2 2024. Once we are running at full capacity, we are expecting economies of scale in production that will allow for greater profitability for both Flow brand and co-pack production. In addition to the many other operational transformation initiatives we have to benefit from in fiscal 2024, we believe we are very close to a significant inflection point in our profitability,” said Nicholas Reichenbach, Flow’s founder and Chief Executive Officer.