Flora Growth Corp's New Acquisition Gives It Access To More Than 1,200 Pharmacies In The Largest Medical Market In The EU

Flora Growth Corp. FLGC (“Flora”) has a history as an international player in the cannabis, industry. Flora’s brands JustCBD and Mind Naturals have been successful in North America, South American and European markets. The company is also the owner of one of the largest cannabis cultivation facilities, located in Colombia. 

It might come as little surprise that after a year of international growth and bringing in over $25.7 million in revenue as of September 30th 2022, the company is heading into 2023 with the news of a huge acquisition. As 2022 ended, Flora closed on the acquisition of, Franchise Global Health FGH, a Canadian cannabis company with primary operations in Germany. Franchise Global Health has a unique position in the German cannabis market as the owner of the first German medical cannabis import and distribution license. 

This acquisition provides Flora’s access to Germany’s growing cannabis market and over 1,200 pharmacies. It’s estimated that the German medical cannabis market will cross $900 million by 2025. If the German government decides to legalize recreational cannabis, Flora will likely be well positioned by this acquisition to capitalize on Germany’s expanded market. 

Franchise Global Health saw over $32.7 million USD in revenue as of September 30th 2022 and will bolster Flora’s foothold in the European Union. This acquisition looks to be an opportune match because Franchise Global Health was struggling to meet the demand of the German markets; Franchise Global Health’s suppliers were only able to deliver approximately 4 kilos every 8 weeks when FGH had a demand of over 100 kilos every month. Now, Flora has a pathway to distribute their Colombian cannabis and meet the demand of a growing industry.  

“We view this acquisition as transformational as Flora pursues its strategic growth plan to lead the global market for cannabis and its derivatives,” said Luis Merchan, Chairman and CEO of Flora. “Flora has now secured a crucial footprint in an established international cannabis market, providing a unique opportunity for operational synergies and diversified growth. The acquisition adds to our distribution network, expanding our client base, and increases our ability to distribute wholesale cannabis products at scale into the European Union.”

Featured Photo by Kimzy Nanney on Unsplash

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