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Flowr Corp (The)
Symbol FLWR
Shares Issued 289,677,570
Close 2021-01-05 C$ 0.35
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Flowr, Hawthorne complete cannabis R&D facility

2021-01-05 09:17 ET - News Release

Mr. Lance Emanuel reports

FLOWR AND HAWTHORNE CANADA JOINTLY ANNOUNCE THE COMPLETION OF THE WORLD S FIRST CANNABIS RESEARCH AND DEVELOPMENT FACILITY OF ITS KIND

North America's first research and development facility dedicated to advancing cannabis cultivation techniques and systems has been completed by The Flowr Corp. and Hawthorne Canada Ltd. Hawthorne is a subsidiary of the Hawthorne Gardening Company division of The Scotts Miracle-Gro Company. Scotts Miracle-Gro is the world's leading marketer of branded consumer lawn and garden products and indoor growing solutions. Flowr cultivates and sells premium cannabis to medical and adult-use markets in Canada, Europe and Australia.

Located on Flowr's cultivation campus in Kelowna, B.C., Canada, the research and development centre includes state-of-the-art laboratories, indoor grow suites and training areas in a single building. Flowr will test cultivation systems and techniques using Hawthorne's advanced lighting, fertilization and irrigation systems, growing mediums, and research protocols. In addition, Flowr intends to focus its own research on cannabis genetics and integrated growing systems in line with its goal of delivering premium quality cannabis products through highly efficient cultivation.

"We built Hawthorne to help cultivators of all sizes grow quality plants with high levels of efficiency and consistency. Completing the industry's only dedicated R&D facility gives us a distinct advantage. We will leverage Flowr's cultivation expertise and our technical capabilities into real-world testing and results that will make a difference to growers," said Chris Hagedorn, senior vice-president and general manager of Hawthorne Gardening. "We are proud of this collaboration with Flowr, a leading international cannabis company, with extensive growing experience indoors, in greenhouses and at-scale outdoors. Flowr is also one of a few companies that have had experience growing diverse genetics in different countries. We believe this experience will benefit our companies and the growers we serve."

"The completion of the R&D centre brings our work with Hawthorne fully to life and will help keep both companies on the leading edge of cannabis cultivation for years to come," commented Lance Emanuel, president and interim chief executive officer of Flowr. "Operationalizing the R&D centre is a major accomplishment for our organization and strengthens our competitive advantage in cultivation. We believe the long-term success of Flowr will be rooted in our ability to maximize the cannabinoid and terpene expression of genetics without sacrificing yield. The work we will do at the R&D centre will help us build upon the success we've had producing high-quality, premium cannabis like our award-winning, flagship strain, B.C. Pink Kush, beloved by budtenders and consumers throughout Canada. Leveraging our work at the R&D centre will be imperative to our eventual entry into the United States once federally permissible by law."

The research and development centre is the centerpiece of a strategic research and development partnership formed by Flowr and Hawthorne in March, 2018. It brings two of the world's leading experts together to be at the forefront of cannabis cultivation. The operations will be led by Dr. Deron Caplan, the first person in North America to earn a doctor of philosophy focused on cannabis cultivation and production. Dr. Caplan was awarded his doctorate by the University of Guelph in August, 2018, and is Flowr's director of research and development. The research and development centre will be staffed by Flowr's scientists, five of whom have doctors of philosophy in various plant biology, plant genetics and plant biochemistry disciplines. Hawthorne research and development will lead the research design and methodology.

All requisite licensing from Health Canada has been obtained by Flowr and the expectation is that the research and development centre will be operating at full capacity in spring 2021. Research has already begun conducting growing trials at scale using Hawthorne products.

About The Flowr Corp.

Flowr is a Toronto-headquartered cannabis company with operations in Canada, Europe and Australia. Its Canadian operating campus, located in Kelowna, B.C., includes a purpose-built, good manufacturing practice-designed indoor cultivation facility, an outdoor and greenhouse cultivation site, and a state-of-the-art research and development facility. From this campus, Flowr produces recreational and medicinal products. Internationally, Flowr intends to service the global medical cannabis market through its subsidiary, Holigen, which has a licence for cannabis cultivation in Portugal and operates good manufacturing practice licensed facilities in both Portugal and Australia.

Flowr aims to support improving outcomes through responsible cannabis use and, as an established expert in cannabis cultivation, strives to be the brand of choice for consumers and patients seeking the highest-quality craftsmanship and product consistency across a portfolio of differentiated cannabis products.

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