This Newly Public Company Is Looking Toward Global Expansion In The Cannabis Industry

Photo by Matteo Paganelli on Unsplash 

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In an industry that’s still illegal in many countries, it’s tough to establish a global presence.

But that’s not stopping Toronto-based Flora Growth Corp. FLGC from pushing forward to achieve just that. 

Flora Growth is a global cannabis company that looks to leverage natural, cost-effective cultivation practices to supply cannabis and cannabis-derivatives to its diverse portfolio of brands and wholesale customers.

The company states that its guiding principles are to improve the quality of life for people and to protect the earth and its resources, focusing on more sustainable practices and providing access to high-quality products. With an emphasis on human capital and compiling an internal team of some of the most qualified leaders in the industry, Flora may have the infrastructure and economies of scale to position itself as the global cannabis brand of the future. 

“Our mission is to build a design-led collective of plant-based wellness and lifestyle brands that delivers the most compelling customer experiences in the world, one community at a time,” the company states in the investor presentation on its website.

The company hopes to achieve that goal by strengthening three areas that guide its operations: wholesale and distribution; its house of brands; and its life sciences division.

Going Global

Since its debut on the Nasdaq exchange in May, Flora Growth has reached strategic agreements that will land its products in Spain, Mexico, and Israel. 

In January, Flora Growth launched sales of its Mind Naturals skincare brand through Walmart Inc.’s WMT website and Coppel, a nationwide department store in Mexico. 

The global market for cannabis and its derivatives is expected to generate sales of $102 billion by 2026, and Mexico is among the countries projected to have the highest commercialization of CBD products. 

“We are excited to begin bringing high-quality, sustainable CBD skincare products to Mexico,” Flora Growth CEO Luis Merchan said at the time the deal was announced. “As the cannabis market continues its rapid expansion across the globe and into various sectors, we are poised to meet the needs of the market at every touchpoint.”

The company recently signed a distribution agreement with Artos Ltd. to sell about 3,600 kilograms of high-THC cannabis flower in the Israeli market. Flora Growth hopes to establish a partnership with Artos to expand its offering to include oils and, when regulations permit, consumer-ready THC and CBD products.

Flora Growth’s product portfolio spans a variety of verticals from skincare to food and beverages. 

Its products are derived from the company’s Cosechemos cultivation farm in Bucaramanga, Colombia, with a license for 247 acres of cannabis. The company is harvesting high-CBD strains of cannabis while simultaneously preparing for commercial production of high-THC plants.

The Cosechemos farm produced its first batch of crude oil through its recently completed 10,000-square-foot extraction facility. Flora Growth also started the process of becoming EU-GMP certified, which will enable the export of medical-grade cannabis derivatives to international markets when paired with the GACP certification it received in October.

The company also has a life sciences division that works to initiate research studies, clinical trials and development of cannabis-based medical-grade pharmaceuticals and dietary supplements for use in target and broad-based use cases leveraging multiple modalities. This division is currently working with the University of Manchester on a study that is looking into the benefits of cannabinoids on patients with fibromyalgia.

Flora Growth is projecting 2022 revenue of $35 million to $45 million, including contributions from its operating divisions, the recently acquired Vessel brand, and wholesale cannabis sales from Cosechemos.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.