The Flowr Corporation (TSXV:FLWR) announced that it has entered into an equity line and profit sharing agreement for private placement of common shares for gross proceeds of CAD 3,000,000 on May 14, 2020. The transaction will include participation from new investor Terrace Global Inc. (TSXV:TRCE). Pursuant to the terms of the transaction the common shares will be issued at a price equal to the volume weighted average trading price of the common shares on the day prior to the day of such subscription less the maximum applicable discount available under the rules of the TSX Venture Exchange, subject in all circumstances to a minimum price of CAD 0.52 per common share, as is determined by dividing the amount of the approved budget by such price.

In addition, upon issuance of common shares under the agreement, Terrace Global will be entitled to an equal number of whole warrants, with each warrant being exercisable to purchase one common share for a period of 36 months at an exercise price equal to the greater of CAD 0.76 per common share and the minimum exercise price permitted at that time under the rules of the TSX Venture Exchange. The transaction is subject to the approval of the TSX Venture Exchange.