The Flowr Corp. completed its takeover of Holigen Ltd. after acquiring the remaining 80.2% interest in the European medical marijuana distributor by paying about €4.3 million in cash.
Flowr issued 32,632,545 preferred shares to vendors. It also agreed to settle almost €1.4 million owed to certain of Holigen's creditors and purchased certain loans up to an amount of C$365,188.73.
Flowr had announced its plan to fully acquire Holigen on June 24, about six months after it acquired a 19.8% stake in the company.
The Canadian medical cannabis producer also entered into an exclusive termed intellectual property license agreement. The agreement allows Holigen to use its cultivation, facility design and construction in building Holigen's facilities in Portugal and Australia and for securing their respective licenses.
Holigen anticipates obtaining a license to cultivate and distribute medical cannabis for its first site in Portugal — where the cost of production is low — by the second quarter of 2019. It expects to get its license for its second site by early 2020.
