Flora Growth Launches First THC-Infused Beverage In 4 Flavors, Provides Update On Hoshi Investment

Flora Growth Corp. FLGC launched its first THC-infused beverage, Melo, marking the company’s debut into the rapidly growing beverage market.

Melo is the result of a strategic joint venture between Flora Growth and Peak, a renowned provider of advanced cannabis-based products. The collaboration combines Flora’s marketing and distribution network with Peak’s emulsion technology. Melo comes in four flavors – grapefruit, half & half lemonade iced tea, strawberry mango and wild berries.

“Melo represents a forward-thinking approach to how we see the future of beverages," stated Clifford Starke, chief executive officer of Flora. "It’s not just about entering a new market; it’s about redefining what consumers expect from their drinks. We are combining the best of what nature offers with cutting-edge science to deliver a product that enhances everyday life, whether it’s for relaxation after a long day or simply enjoying a moment of calm."

He added, “The beverage industry is ripe for disruption, and hemp offers a unique opportunity to innovate in ways that traditional beverages cannot. We see Melo as a catalyst for change. We believe this product will pave the way for a new category of beverages that resonate with consumers looking for more than just a drink – they’re looking for an experience.”

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Update On Hoshi Investment

Flora also announced progress on its strategic investment in Hoshi International Inc. in Portugal, highlighting ongoing developments since Hoshi secured a new financial partner in 2023, which has accelerated the advancement of its operations.

In 2021, the Florida-based marijuana company invested 2 million euros ($2.42 million) in Hoshicap Portugal Unipessoal Lda, a subsidiary of Hoshi International. With this strategic move, Flora aimed to solidify its position as a preferred strategic supplier to Hoshi’s EU processing facilities in Malta and Portugal and to obtain a port for the importation of compliant, high-quality Colombian outdoor cannabis flower and derivatives to the European Union.

Flora initially secured 10% ownership in the company. Hoshi, in turn, controls 51% of the Portuguese entity operating the facility. As milestones are met, Hoshi’s ownership stake will be reduced to 25%.

Hoshi's Recent Milestones

Per the update, Hoshi’s new financial partner agreed to take over capital expenditures and operational expenses in exchange for an equity stake in the company. As a result of this collaboration, Hoshi has made headway in the following areas:

Facility construction: Completing the first phase of construction at the facility, which includes a 1,200-square meter greenhouse with a production capacity of up to 1,500 kilograms per year.
Licensing inspection: Conducting a licensing inspection by the Portuguese regulator and receiving its good agricultural and collecting practice (“GACP”) production and processing license.
Cannabis clones: Receiving the first 70 cannabis clones as part of the pre-licensing process.

The project in Portugal currently employs 18 full-time staff members. To date, approximately $20 million has been invested into the facility.

“We are pleased with the strides Hoshi has made over the past 18 months," stated Starke. "Our investment in the European cannabis market aligns with our strategy. We believe that Hoshi’s facility will become a key player in the European cannabis landscape, particularly as the market continues to evolve and move forward. We remain confident in Hoshi’s ability to deliver on its goals and timelines. The GACP certifications and expected commercial harvest in 2025 are important inflection points, both for Flora and Hoshi, as we capitalize on the growing demand for high-quality cannabis in Europe."

Flora is exploring the expansion of its EU-GMP license from Germany by collaborating with Hoshi to establish a direct sales channel. This strategic move would allow Flora to secure a long-term supply of high-quality medical cannabis from Hoshi’s operations, based in a low-cost and favorable jurisdiction.