TERRACE GLOBAL INC. Terrace Global Inc. ("Terrace Global" or the "Company") provided an operational update at the Aljustrel, Portugal outdoor medical cannabis site which is jointly operated with The Flowr Corporation ("Flowr"). As previously announced, the Company has entered into a joint venture with Flowr whereby the Company will fund certain operating and capital expenditures at the Aljustrel outdoor medical cannabis site in Portugal in exchange for the issuance of common shares and warrants in Flowr as well as 25% of the net proceeds from the sale of any medical cannabis from the project. Pursuant to the terms of the joint venture, the Company has enabled its cultivation team to work jointly with the Flowr team to develop the site in 2020 and 2021.
These genetics add to the 13,500 clones that Flowr imported earlier in the year to Holigen. The clones were Pink Kush, OG Tahoe and Louis XIII, each of which are more than 20% in THC. The Pink Kush strains were planted by Flowr outdoors at their Kelowna, British Columbia campus.
The Company and Flowr have already planted approximately 13,500 clones at the outdoor medical cannabis site in Aljustrel, Portugal. In addition, the Company will be sowing approximately 30,000 seeds as outlined above over the course of the next week with the expectation that seedlings will be transplanted in mid-July. The Company is working closely with Flowr and Holigen to ensure the success of this year's outdoor medical cannabis crop.
The Aljustrel outdoor medical cannabis site is fully licensed for medical cannabis production and it is expected that the partnership with Flowr will enable the Company to process, dry and package all medical cannabis produced at the Alustrel site at Holigen's GMP facility in Sintra, Portugal, subject to applicable regulatory approvals. The Aljustrel site has been designated a project of national interest by the Portuguese government, a designation that reduces bureaucratic decision-making and allows for expedited regulatory licensing.
