- Flora Growth Corp. is a Colombian cannabis cultivator that is building a global cannabis CPG portfolio of premium brands and products
- Flora Growth recently announced an LOI designed to grant it an in-road to Australia’s over-the-counter medical cannabis and CBD commercial markets
- The company also signed an LOI to distribute popular Canadian pain topical brand KaLaya throughout Latin American countries, with exports planned to the United States, and to infuse its established line of products with CBD
- Market analysts predict Australia’s medial cannabis market will explode from about $150 million this year to more than a billion dollars by 2025
The Colombia-based operations of cannabis cultivator, global brand builder and product distributor Flora Growth (NASDAQ: FLGC)
are receiving increased attention from market watchers, particularly in the wake of the company’s announcement that it executed a letter of intent (“LOI”) with Australia’s Evergreen Pharmacare Pty Ltd. to supply medical-grade dried flower and derivative cannabis products to Australians through Evergreen’s pharmacy distribution network.
A July 27 statement
issued by Flora Growth indicated Evergreen helps patients and healthcare practitioners, primarily physicians and pharmacists, obtain medical cannabis products and provides them with additional cannabis-related education about its use, authorization and regulation. Flora Growth will begin shipping its medical-grade cannabis products as soon as it harvests its first commercial crop and secures the necessary export licenses (https://cnw.fm/YefTQ
Market analysts at FreshLeaf Analytics (https://cnw.fm/ValZP
) and Prohibition Partners (https://cnw.fm/Ob8Ab
) predict the medical cannabis segment will range in value from about US$150 million this year to up to US$1.5 billion by 2025, and the LOI between Flora Growth and Evergreen positions the Colombian grower (with headquarters in Miami, Florida) at the leading edge of a burgeoning market.
“This agreement also provides significant potential upside by allowing us to work with Australian regulators directly and bring our premium brands and established product formulations to the over-the-counter CBD market
,” Chief Revenue Officer Jason Warnock stated in the company’s news release, adding that Australian regulators’ recent decision to down-schedule cannabidiol (“CBD”) to a level where it can be sold as an over-the-counter product opens the door to Flora’s strategy for “providing proven cannabinoid wellness and beauty products to consumers around the world
Flora Growth also recently announced that it has signed an LOI to form a joint venture with Canadian-based Avaria Inc., which manufactures pain cream under its flagship brand KaLaya. KaLaya is distributed nationwide across Canada and anticipates distribution across Latin American countries under the JV, with exports to the United States as Flora Growth manages registration, sales and distribution needs. The upside here is not only bringing these well-received products to international markets, but to also infuse these products with cannabinoids, particularly CBD, in order to generate incremental revenue.
Avaria does not currently hold a license in Canada to produce cannabis derived versions of its products at a commercial scale, so the partnership would see Flora Growth’s lab division providing it with a necessary boost to expand its market reach as it supplies the cannabis derivative products and low-cost manufacturing locally in Colombia.
In Canada, KaLaya has been recognized as the most popular topical analgesic brand distributed through Canadian retailer Purity Life and by The Shopping Channel in 2020, weighing in as Canada’s fastest growing topical decongestants and analgesics brand, according to Nielsen Market Track.
“Given CBD’s association with wellness, KaLaya’s established formulation, and Flora Growth’s low-cost high-quality cannabis, this is a natural partnership we are excited to bring globally
,” Flora Growth President and CEO Luis Merchan stated in the news release.
For more information, visit the company’s website at www.FloraGrowth.ca
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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