- Flora Growth is a cannabis cultivator and distributor operating a 100-hectare (about 247-acre) harvesting site called Cosechemos in central Colombia’s favorable growing climate
- Flora Growth has completed its first import of CBD-containing food and beverage products into the United States under its Mambe brand, thanks to Colombian regulatory changes in recent months allowing cannabis product exports
- Flora has filed licenses for 23 cannabinoid-infused food and beverage products with Colombia’s INVIMA food and drug regulatory body
- Imported Flora products will take advantage of the company’s U.S. distribution network customer database, which nearly doubled with last month’s acquisition of established CPG brand JustCBD
- JustCBD has over 300 products, 300,000 customers, and a network of over 14,000 stores across the United States and Flora’s operations will increase its capacity for international growth
The recently announced successful import of Mambe CBD-containing food and beverage products into the United States from Colombia marks a huge step for cannabis cultivator Flora Growth (NASDAQ: FLGC) in the company’s plans for becoming a global market distributor.
Flora Growth’s 100-hectare (about 247-acre) Cosechemos cannabis cultivation site in central Colombia is key to its strategy, drawing on ideal conditions for cannabis production that include over 12.5 hours of natural sunlight 365 days a year, a labor force with substantial agricultural experience, and a government that is increasingly friendly to cannabis production and transportation as an outgrowth of years-long drug wars eradication efforts.
Colombian President Ivan Duque green-lighted legalization of dried cannabis flower production and exports last July for food, textile and medicinal purposes, while resisting any effort to supply the recreational use market (https://cnw.fm/WrCxp). Late last month, Duque signed a resolution that provides the necessary regulatory framework for cannabis product use and export to formalize the development (https://cnw.fm/iaFYJ).
“We are thrilled to be the first Colombian cannabis operator to capitalize on the law change President Duque signed into effect,” Flora Growth CEO Luis Merchan stated after announcing completion of the U.S. import of its products (https://cnw.fm/PRLVq). “Our team anticipated this regulatory update and has been laying the necessary foundation to expand this new supply chain pathway allowing Flora to quickly bring our diverse product portfolio and low-cost cannabis inputs to new high-growth international markets.”
Flora has filed licenses for 23 cannabinoid-infused food and beverage products with Colombia’s food and drug regulatory body, the Instituto Nacional de Vigilancia de Medicamentos y Alimentos (INVIMA), including juices, sparkling seltzers, gummies, chocolates, ghee butter and healthy snack foods that prioritize natural ingredients and value-chain sustainability (https://cnw.fm/0DfJw).
Flora anticipates expanding Cosechemos-sourced non-psychoactive flower and derivatives distribution during the coming months as a result of its acquisition of JustCBD, which was announced Feb. 28. JustCBD has an extensive network of over 14,000 stores with over 300,000 customers, boosting Flora’s overall database to more than 500,000 customers, and Flora states it expects JustCBD’s financial performance to immediately contribute to the company’s 2022 revenues and earnings.
On March 2, the company announced that its Vessel brand had signed an agreement with JustCBD-affiliated Speedy Distribution that will introduce Vessel’s vape and dry herb products into traditional smoke shop channels (https://cnw.fm/3HLm1).
“We see this agreement as the first of many where we leverage JustCBD’s existing distribution network and Flora’s diverse product portfolio to amplify growth for our combined Company,” JustCBD CEO Hussein Rakine stated at the time.
At the same time, the acquisition is expected to give JustCBD a boost for expansion from its U.S. base into international arenas where CBD products are permissible, including Germany, Mexico, and Colombia, the company states.
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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