Second Quarter Highlights:
· In response to COVID-19, the board of directors took immediate actions to ensure all non-essential capital expenditures and operating costs were significantly reduced. The Company has also been in close contact with the municipalities in which it operates in order to support them with personal protective equipment.
· On May 14, 2020, Terrace Global entered into an equity line and profit-sharing agreement (the “Flowr Agreement”) with The Flowr Corporation (TSXV: FLWR) (“Flowr”) to fund the operations at the Aljustrel outdoor site in Portugal in exchange for common shares and warrants in Flowr plus a 25% share of net proceeds from medical cannabis sales from the 2020 season, subject to reduction of such share of net proceeds in certain circumstances.
· As at June 30, 2020, the Company had cash and cash equivalents of approximately $13 million. In addition, the Company’s holdings of Flowr securities represented approximately $1 million in market value based on the last traded price on June 30, 2020.
· On July 9, 2020, the Company appointed Hesaam “Hess” Moallem to the International Advisory Board, joining Messrs. Lorne Gertner, Hon. Jim Peterson, Maria Consuelo Araujo, and Jonathan Goldman. Mr. Moallem is a consumer-packaged goods industry executive and attorney with a diverse background, and was previously the President, Chief Executive Officer, and Director of Charlotte’s Web Holdings Inc. (TSX: CWEB), one of the most prominent CBD producers in the United States.
FOR IMMEDIATE RELEASE
TORONTO, ONTARIO – August 31, 2020 – Terrace Global Inc. (“Terrace Global” or the “Company”) (TSXV:TRCE) is pleased to announce it has filed its interim unaudited financial results for the quarter ended June 30, 2020. The interim unaudited financial statements and management discussion and analysis for the three and six months ended June 30, 2020 will be available on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com and on Terrace Global’s website at www.terraceglobal.ca.
“Our operations this year have focused on Portugal where we have partnered with Flowr to operate the Aljustrel outdoor medical cannabis facility in Aljustrel, Portugal. It is important to note that all funds deployed to the joint venture are immediately repaid by way of the issuance of common shares and warrants of Flowr. This has allowed us to get boots on the ground in Portugal, learn the cultivation landscape and determine which genetics will succeed long-term in Portuguese soils with very little financial exposure,” commented Francisco Ortiz von Bismarck, Chief Executive Officer of the Company. “The Flowr Agreement provides the Company the opportunity to jointly operate a large-scale medical cannabis operation in the E.U. with significant first production to be expected in 2020. We are also very excited to be able to leverage Flowr’s E.U. GMP facility in Sintra, Portugal to unlock additional value from our outdoor crop.”
About Terrace Global
Terrace Global is a multi-country operator (MCO) led by experienced cannabis entrepreneurs focused on the development and acquisition of international cannabis assets. Terrace Global’s focus is on federally legal jurisdictions with existing domestic demand, low cost inputs and approved for exportation. Terrace Global’s existing asset platform consists of: (1) a 33.75% indirect equity interest in one of the currently two recreational cannabis operations in Uruguay; (2) 100% of Oransur, S.A., a Uruguayan company producing high CBD hemp in Uruguay; (3) 100% of Terra Nova Produção e Comercialização de Produtos Natuis e Farmacêuticos, Lda, a Portuguese company with a pre-license issued by INFARMED for the cultivation, importation, and exportation of medical cannabis in Portugal; and (4) 100% of Pharmabinoide S.L., a Spanish company producing and commercializing hemp in Spain.
For further information regarding Terrace Global, please contact:
This news release contains certain forward-looking statements, including, but not limited to, statements about the Company’s future plans and intentions. Wherever possible, words such as “may”, “will”, “should”, “could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict” or “potential” or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof.
Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
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