Through a significant reduction in our operating expenses associated with operating Verona and a material reduction in related future lease obligations, we have meaningfully improved our financial position and streamlined our organization. Nicholas Reichenbach, Founder and Chief Executive Officer of Flow, stated: "The sale of the Verona production facility is a major milestone towards achieving profitable growth of the Flow brand. All active employees at the Verona Facility will become employees of BioSteel following a post-closing transition period. To support Verona Facility utilization and an efficient transition for both parties, Flow and BioSteel have also entered into a co-manufacturing agreement (the "CMA") whereby BioSteel will produce Flow's portfolio of branded water at the Verona Facility, in addition to the production of BioSteel-branded sports hydration drinks on site. ("BioSteel") whereby BioSteel has purchased all the assets of the Company's production facility located in Verona, Virginia (the "Verona Facility") for a purchase price of US$19.5 million, comprised of US$13.2 million in cash and US$6.3 million for the repayment of debt and the retirement of lease obligations (the "Transaction").īiosteel + flow logos (CNW Group/BioSteel Sports Nutrition Inc.) 9, 2022 /PRNewswire/ - Flow Beverage Corp. (TSX: FLOW) (OTCQX: FLWBF) (the "Company" or "Flow") today announced that it has reached a definitive agreement with an affiliate of BioSteel Sports Nutrition Inc. The sale of the Verona Facility allows Flow to focus on the profitable growth of the Flow brand, simplifying its operating structure and improving its balance sheetīioSteel's purchase of the Verona production facility enables vertical integration in support of BioSteel's rapid growth strategyīioSteel and Flow enter into co-manufacturing agreement to support an efficient transition while maximizing facility utilizationįlow maintains ownership of the 144-acre Verona, Virginia spring water source
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