- Flora Growth is a cannabis cultivator and distributor with a base of operations in Colombia’s fertile growing climate, capable of feeding the company’s expanding international supply chain
- Colombia has undergone a number of regulatory changes in recent years as it emerges from the shadows of years-long drug wars and embraces a growing global acceptance of cannabis products
- The South American country voted in a new presidential administration in June, and Flora Growth is applauding the president-elect’s continued openness to international cannabis trade
- Flora Growth announced significant revenue growth during its year-end financial reporting in May, and the company stated it expects another 288 to 400 percent increase in revenues during the current year
Following nationwide elections that marked a historic change in Colombia’s presidency as well as its people’s social policy aspirations, emerging cannabis brand builder Flora Growth (NASDAQ: FLGC) is expressing optimism for its market opportunities, which are based on a growing cannabis cultivation operation in the South American country.
Longtime legislator Gustavo Petro, a sitting senator and previously Mayor of Bogota, was declared Colombia’s chief executive-elect June 19 after his remaining opponent in a runoff election conceded that Petro had won the majority of the vote in an orderly transfer of authority (https://cnw.fm/Nz0Xx).
Flora Growth enjoyed explosive energy in building an international supply chain for its cannabis products under the progressive drug policy changes instituted by outgoing President Ivan Duque’s administration, and the company anticipates Petro’s approach to the market’s opportunities will further open doors for its operations.
“We would like to congratulate President-Elect Gustavo Petro on his victory and we look forward to working with the new government to continue Colombia’s progressive momentum in the global cannabis industry,” Flora Growth Chairman and CEO Luis Merchan stated in a recent news release (https://cnw.fm/P1Ww6).
“We are encouraged by President-Elect Petro’s stance on seeing Colombia become a leader in the legal cannabis industry and we are hopeful for progressive legislation that will allow Colombia to create a safe environment for cannabis consumption domestically — potentially leading to a recreational market in the country,” Merchan added, while observing that Colombia’s environmental and labor conditions are ideal for building successful international commerce.
Petro signaled his support of the industry last year when he stated, “The possibility of legal exportation of marijuana for recreational and medicinal purposes through licenses from the national government has friends with political power in Colombia. If Colombia does not get its act together, we’re going to lose that business” (https://cnw.fm/HKd3z).
Flora Growth operates a 100-hectare (about 247-acre) cultivation facility known as Cosechemos in the heart of Colombia’s green grower-friendly climate. From its cultivation, extraction and isolation operations at the city of Bucaramanga, much of its product goes to its GMP-certified processing facility for beauty, phytotherapeutic and nutraceutical products in the nation’s capital, Bogotá.
The company’s license applications with Colombia’s food and drug regulatory body have included more than 20 cannabinoid-infused food and beverage products, such as juices, sparkling seltzers, gummies, chocolates, ghee butter, and healthy snack foods, that prioritize natural ingredients and value-chain sustainability (https://cnw.fm/3nCoq).
“While approximately 90% of Flora’s forecasted revenue is expected to be derived outside of Colombia, we see Colombia as particularly well suited both for production of high-quality, cost-advantaged cannabis and the manufacturing of cannabinoid-derived medical formulations that can be sold domestically and internationally,” Flora’s Chief Commercial Officer Jason Warnock added in the company news release.
Year-end financial results announced in May reported annual revenue of about $9 million — a “significantly higher” amount than the company reported a year earlier before Colombia’s change in its drug product laws went into effect and Flora launched its IPO on the Nasdaq Capital Market. And the company stated at the time that it expects revenues to grow another 288 to 400 percent during the current year (https://cnw.fm/4q3Bp).
For more information, visit the company’s website at www.FloraGrowth.com.
NOTE TO INVESTORS: The latest news and updates relating to FLGC are available in the company’s newsroom at https://cnw.fm/FLGC
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