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Flora receives commercial high-THC export quota from the Colombian Technical Quotas Group of 7,900kg of dried cannabis flower
The market for psychoactive cannabis commands the highest prices in the industry with the average wholesale price per kilogram of THC distillate oil estimated between US$3,500-US$8,000(1)
Flora has signed multiple agreements for the sale and distribution of its dried flower and derivative products into several international jurisdictions, including South Africa, the EU, Australia, and Latin America
Inaugural harvest of high-THC cultivars expected to occur by November 2021 and will complement commercial non-psychoactive (CBD) harvests, already in production
MIAMI & TORONTO, September 07, 2021--(BUSINESS WIRE)--Flora Growth Corp. (NASDAQ: FLGC) ("Flora" or the "Company"), a leading all-outdoor cultivator and manufacturer of global cannabis products and brands, is pleased to announce that it has received its 2021 export quota from the Colombian Technical Quotas Group ("TQG") to cultivate up to 7,900 kilograms of high-THC cannabis dried flower for direct sale or processing into derivative products for export to international markets.
"We have been eagerly anticipating and preparing for this announcement by cloning thousands of plants which we currently have in propagation waiting to be transferred into our fields. While awaiting this quota, we were focused on optimizing our cultivation strategy and demonstrating our industry-leading production costs of just US$0.06 per gram, while continuing to build out our facilities and applying for third party certifications," said Javier Franco, VP of Agriculture of Flora. "While we prioritize planting the new high-THC cultivars, it’s also important to note we are actively harvesting our high-CBD crops, and anticipate that this harvest will create a robust pipeline of cannabis derivatives for Flora to use across its premium brands and products, as well as for export to multiple international markets."
Management believes that the new 2021 export quota allocation that Flora has been provided to cultivate, process, and distribute high-THC cannabis dried flower and derivatives, will be sufficient to meet the international demand for Flora’s product for the remainder of 2021 and at the onset of 2022. Flora previously announced agreements with Kiricann and Evergreen Pharmacare to supply dried flower and derivatives for distribution in Africa and the EU, as well as to Australia, respectively. Additionally, the Company announced that it intends to make a strategic investment into Hoshi International, which will establish Flora as a preferred supplier to Hoshi’s two EU processing facilities, located in Malta and Portugal.
"This is a significant milestone for the Company and represents a major opportunity to export our high-margin, high-THC goods to legal markets around the world," said Jason Warnock, Chief Revenue Officer of Flora. "It’s also important to note that this quota is for THC cannabis products as Flora does not require any quota for non-psychoactive cannabis (high-CBD) flower or derivatives."
About Flora Growth Corp.
Flora is a cannabis company that leverages natural, cost-effective cultivation practices to supply cannabis derivatives to its diverse business divisions of cosmetics, hemp textiles, and food and beverage. As the operator of one of the largest outdoor cultivation facilities, Flora strives to market a higher-quality premium product at below market prices. By prioritizing natural ingredients and value-chain sustainability across its portfolio, Flora creates premium products that help consumers restore and thrive. Visit www.floragrowth.ca or follow @floragrowthcorp on social for more information.
Cautionary Statement Concerning Forward-Looking Statements
This document contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: the impact of legislative changes in Colombia both in Colombia and internationally; the impact of export quotas on our business; the size of markets for cannabis and cannabis products; our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as "may," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential," or "hopes" or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this document and other statements made from time to time by us or our representatives may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, or the forward-looking events discussed in this document and other statements made from time to time by us or our representatives not occurring, except as may be required by applicable law.
Prohibition Partners, The Cannabis Extraction Report, 2021.
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