Flow Water set to go public, raises CAD$30 million in preparation
Flow has established direct sales relationships with most of the largest grocery, drug store, and convenience chains in North America.
TORONTO — Flow Water Inc. and RG One Corp. announces further information about their recently entered into letter of intent to complete a going-public transaction by way of a business combination. Upon completion of the Transaction, the combined entity will continue to carry on the business of Flow. The Company anticipates that the Transaction will be completed sometime in the first half of 2021. In addition, as part of the Transaction, the Company is looking to raise a minimum of CAD$65 million, of which CAD $30 million has been committed from existing shareholders as part of a non-brokered financing. The remainder of the financing will be raised through a brokered private placement of subscription receipts priced in the context of the market for aggregate gross proceeds of approximately CAD $35 million.
Nicholas Reichenbach, Founder and CEO of Flow, stated “We are very pleased by the wave of enthusiasm we saw for our non-brokered private placement, which we ultimately upsized to CAD$30 million. In the wake of this incredible financing round, we are ready to pursue our listing on the Toronto Stock Exchange, which we view as the first step in our life as a public company. We believe that this committed capital along with our entrance into the public markets will accelerate our growth through expansion of our omni-channel retail distribution and continued product innovation, and further strengthen our brand and competitive positioning as we aggressively target the large and rapidly growing premium enhanced water and ‘better-for-you’ beverage markets, with our core premium alkaline mineral spring water, global award winning organic flavored waters, collagen infused spring water, and organic certified vitamin spring water infusions.”
Sustainability and protecting natural resources are central to the Company’s purpose, and Reichenbach says, “As Mother Earth is Flow’s biggest shareholder, ESG performance is at the forefront of our mission.” The Company always strives to increase sustainability throughout its value chain, for example, innovating toward 100% renewable-resource-based packaging in the next few years, and using renewable energy in its facilities.
Flow is launching a 2021 spring and summer campaign featuring a host of celebrity investors including Shawn Mendes, NBA superstar Russell Westbrook, and Taboo from the Black Eyed Peas. Their goal is to drive mass awareness of Flow’s mission and vision and inspire the Flow movement across social media and marketing platforms, and reach consumers in all channels.