Flora Growth To Acquire Colombian Pharma Company Cronomed

Flora Growth Corp. said Thursday it has signed a letter of intent with Latin Canada Pharma Inc. to fully acquire Grupo Farmaceutico Cronomed S.A.S., or Cronomed. 

Cronomed is a Colombia-based pharmaceutical company that manufactures medical products, dietary and nutritional supplements and cosmetic products, all authorized by the Colombian National Food and Drug Surveillance Institute.

The company said it's awaiting approval for the export of its products to Latin America and across the world and has plans for wider distribution. 

Flora said it will collaborate with Cronomed’s R&D team to find the best solutions for the incorporation of Flora’s organic CBD oil into these products.

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"The acquisition of Cronomed is a significant milestone for Flora," Flora CEO Damian Lopez said in a statement.

"Cronomed is expected to be a significant revenue source for Flora, initially in Colombia and then internationally. There is an untapped opportunity to explore how the inclusion of CBD into medicinal, nutritional and nutraceutical products can enhance their efficacy."

Flora said the deal calls for a payment of $1.89 million cash on closing; $2 million when Cronomed increases itss revenue by 20% over 2019; and $2 million when Cronomed increases its revenue by 40% over 2019. The deal is subject to the signing of a definitive agreement and regulatory approval.