- Flora Growth recently announced it had signed an LOI to provide a Panama-based international importer and distributor with cannabinoid-containing food and beverages
- The announcement followed on the heels of regulatory changes passed by Panama’s National Legislative Assembly, which legalized the use of medical cannabis and its therapeutic properties
- In July, Flora Growth signed an LOI with an international distributor to supply its dried flower and derivatives, an immediate result of the legalization of the export of dried cannabis flower by Colombia’s government
As a wave of cannabis-focused regulatory changes sweeps across Latin America and the world at large, Flora Growth (NASDAQ: FLGC), an internationally focused cannabis brand builder leveraging natural, cost-effective cultivation practices to supply cannabis flower and derivatives to its diverse business divisions, is proving quick to take advantage of these opportunities.
Following the legalization by Colombia’s government for the export of dried cannabis flower in July this year, for example, Flora immediately reacted, demonstrating an unmatched strategic readiness to make moves right away. The company signed a letter of intent (“LOI”) with Kiricann, a South Africa-based international distributor with distribution agreements in the EU, to supply its dried flower and derivatives (https://ibn.fm/2WsBq). Additionally, the company signed a non-binding LOI with Evergreen Pharmacare, a licensed Australia-based importer and distributor of medical cannabis products, to supply its premium dried flower and derivatives.
According to a recent Benzinga article, the Colombian law positioned the company for continued expansion into global markets. Flora Growth, which boasts robust infrastructure, access to skilled agricultural labor, and a strong distribution network, is ideally poised for exports of its cannabis products to do very well worldwide (https://ibn.fm/oGUIN). The company’s low production cost of only $0.06 per gram of cannabis, which is approximately 97% less than the reported costs of Canadian companies Aphria ($1.85 per gram), Sundial ($1.86 per gram), and Tilray (NASDAQ: TLRY) ($2.36 per gram) (https://ibn.fm/Dewwf), equally give it a substantial competitive edge.
In a move that appears to capitalize on these favorable conditions as well as the regulatory changes passed by Panama’s National Legislative Assembly on August 30, Flora Growth announced September 16 that it had signed an LOI with Panama-based Robust Farms Inc., an international importer and distributor. Under the terms contained in the letter, Flora will provide Robust Farms with cannabinoid-containing food and beverages through its Kasa Wholefoods division, a Colombian manufacturer of food and beverages.
The Panamanian changes, contained in Bill 153, legalized the use of medical cannabis and its therapeutic properties and further created a regulatory framework to monitor and control access. Following the changes, authorized patients will have the right to access medical cannabis products through licensed pharmacies that will be responsible for distribution.
“It’s expected that Panama will become the first country in Central America to regulate the use of medical cannabis, however, the new regulations must be approved by President Laurentino Cortizo,” the article notes.
Flora Growth President and CEO Luis Merchan lauded Panamanian legislators and advocacy groups for their efforts to push forward the initiative to control and regulate medical cannabis. “Ultimately,” he continued, “it will help provide options for patients who are looking to improve their quality of life by utilizing emerging cannabinoid therapeutic treatment. We look forward to working with local partners to provide our cannabis products to the citizens of Panama.”
As Flora Growth continues its global expansion, it is focused on creating a balance between international collaborations and serving local communities. The company intends to prioritize the protection of the earth and its resources and, therefore, first considers the global impacts of its actions before acting on a local level. This approach helps Flora enact positive connections to the communities it inhabits and stand out, particularly in Colombia.
Flora Growth operates one of the largest outdoor cultivation facilities in the world with the aim of marketing a higher-quality premium product at below-market prices. Flora Growth offers low-cost cannabis cultivation through its 10.8 million square feet (247 acres) of licensed cultivation land in Colombia, an expansive product and brand portfolio, as well as a strategic global distribution platform.
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://ibn.fm/FLGC
InvestorWire is the wire service that gives you more. From regional releases to global announcements presented in multiple languages, we offer the wire-grade dissemination products you’ll need to ensure that your next press release grabs the attention of your target audience and doesn’t let go. While our competitors look to nickel and dime you with hidden fees and restrictive word limits, InvestorWire keeps things transparent. We offer UNLIMITED Words on all domestic releases. While other wire services may provide a basic review of your release, InvestorWire helps you put your best foot forward with complimentary Press Release Enhancement.
With our competitors, the work is done the second your release crosses the wire. Not with InvestorWire. We include follow-up coverage of every release by leveraging the ever-expanding audiences of the 50+ brands that make up the InvestorBrandNetwork.
Get more out of your next press release with InvestorWire. It’s unlike anything you’ve seen before.
For more information, please visit https://www.InvestorWire.com
InvestorWire is part of the InvestorBrandNetwork.