Flow Beverage Corp. announced that it has entered into a 36- month senior secured term loan (the "Loan") with NFS Leasing Canada Ltd. ("NFS") of up to CAD 20.3 million. Flow has initially drawn CAD 15.3 million pursuant to the Loan and has the ability, subject to certain conditions, to draw an additional CAD 5.0 million prior to the one-year anniversary of the initial draw under the Loan.

The Loan bears interest at 14% per annum and has share purchase warrant coverage of 10% on any amounts drawn on the Loan. The warrants have a ten-year term, an exercise price of $0.50 per warrant and an accelerated expiry date if the weighted average trading price of subordinate voting shares of Flow trade at or above $1.75 for 10 consecutive trading days. Flow intends to use the Loan proceeds to repay CAD 9.6 million in unsecured notes, as well as to invest in the growth of the Flow brand, working capital and for general corporate purposes.

Canaccord Genuity acted as financial advisor to Flow with respect to the Loan.