Flora Growth Inks Medical Marijuana Supply Agreement With Curaleaf

On Monday, Flora Growth Corp. FLGC reaffirmed its medical cannabis supply agreement with Curaleaf Holdings‘ CURLF subsidiary Northern Green Canada, Inc.

Under the agreement, Northern Green will supply Flora with medicinal cannabis products that Flora will distribute in the German market. The new supply agreement provides for a minimum purchase obligation and a minimum supply obligation on Flora and Northern Green, respectively, subject to certain terms and conditions. All product received by Flora under the agreement must be used solely for medicinal purposes, and Flora cannot re-sell or otherwise transfer any product to a third party for non-medical use without prior written consent of Northern Green.

On Monday, cannabis giant Curaleaf also confirmed on X that "Curaleaf has entered into an agreement to supply cannabis products to Flora Growth for distribution through Flora in Germany. The terms of the agreement are disclosed in a Form 8-k filed on November 1, 2024 by Flora Growth Co. Curaleaf is pleased to have concluded this agreement with Flora."

Curaleaf has entered into an agreement to supply cannabis products to Flora Growth for distribution through Flora in Germany. The terms of the agreement are disclosed in a Form 8-k filed November 1, 2024 by Flora Growth Co. (FLGC). [https://t.co/U9ex32rNsd]. Curaleaf is pleased…

— Curaleaf (@Curaleaf_Inc) November 4, 2024

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

Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. If you're serious about the business, you can't afford to miss out.

Although on Oct. 30 and 31, 2024, Curaleaf tweeted that there was “no agreement in place between Curaleaf and Flora Growth Corp,” the parties have now confirmed the supply agreement-first dated Oct. 28, 2024 and, as revised and fully executed, dated Oct. 31, 2024.

In another comment on X Curaleaf also noted on Monday that the agreement "is a limited transaction and is not a broader, ongoing commercial relationship with Curaleaf.”

The deal replaces the previously-existing cannabis supply agreement, by and between Terra Verde LDA an affiliate of Curaleaf, and ACA Müller ADAG Pharma Vertriebs GmbH an affiliate of Flora, dated as of Feb.18, 2020, which provided for the supply of medicinal cannabis products by LDA to ACA Müller, with ACA Müller to distribute such products in the German market.

Price Action

Flora Growth shares were trading 14.17% higher at $1.56 at the time of writing Monday morning, and Curaleaf shares 3.72% higher at $3.07.

Read Also:

• Frankfurt And Hannover Prepare For Cannabis Sales Study Amid Health Alarms Over Black Market Contamination

Photo: Courtesy of Bukhta Yurii via Shutterstock