This Cannabis Pioneer Is Ramping Up Its Presence In Germany As Weed Legalization Takes Effect

Flora Growth Corp. FLGC has been positioning itself on the international cannabis stage for years.

The Canadian-based producer of cannabinoid organic oils, infused food and beverage, pharmaceutical grade, medical and cosmetic-grade derivatives is serving all 50 U.S. states and 28 countries with over 20,000 points of distribution around the world.

The company's latest move to further cement its global footprint comes simultaneously with a new German cannabis law that went into effect this Monday, April 1, which partially legalized cannabis. The new law allows adults over 18 in Germany to legally possess up to 25 grams of dried cannabis and cultivate up to three marijuana plants at home.

Flora Growth, which through its wholly-owned subsidiaries has been active in Germany since 2017, revealed last week its plans to launch a cannabis home grow kit, and start up material seeds and cuttings in the European country as it enters the first phase of new recreational cannabis legalization law. This comes as no surprise considering the cannabis recreational market, as per the company's expectations, has the potential to reach $4.2 billion upon legalization with the total European market forecasted to achieve revenues of $10.2 billion.

German cannabis legalization will be one of the many hot topics at the Benzinga Cannabis Capital Conference which returns to Florida this April 16-17.

The company also said it plans to address the second phase of cannabis policy change in Germany. As of July 1, adults would be able to legally join not-for-profit social clubs where they will be able to buy up to 25 grams of cannabis, with a cap of 50 grams per month. That cap is 30 grams for members under 21 years old. Flora alsointends to supply social clubs with start-up material in the form of seeds and cuttings.

Under the new law, medical cannabis in Germany is no longer classified as a narcotic and can now be prescribed by physicians, resulting in Flora's decision to expand its presence in the country.

On Monday, the company revealed its intention to acquire TruHC Pharma GmbH in an all-stock deal in exchange for 2,770,562 of its common shares, valued at $6.4 million based on the closing price of the Flora Growth shares on March 28, 2024, of $2.31 per share.

“The acquisition of TruHC is expected to provide Flora with the runway it needs to maximize the benefits of Germany’s cannabis legislation," Clifford Starke, the company's CEO, said. "We intend to touch on many verticals in the medical and recreational cannabis realms in Germany."

According to the press release, the acquisition capitalizes on TruHC’s leading German cannabis platform, including:

• EU-GMP processing and production license
• GDP wholesale license for import/export
• EU-GMP-certified customizable modules with flexibility to incorporate various production/packaging processes and which enable license extension for future in-country cultivation and supply to cannabis dispensaries
• Narcotics license with EU-GMP-certified storage
• EU-GMP-certified laboratory for instant cannabis analysis

Expansion In The UK

Meanwhile, other recent news includes an exclusive distribution agreement Flora signed with Althea Group Holdings Limited last week, for Vessel brands in the United Kingdom.

Through its Vessel subsidiary the company expects to take its fair share of the vape pen and dry herb vaporizers multi-billion-dollar industry, expected to grow exponentially over the next decade, from $5 billion to $15 billion in 2031, Flora said on Friday.

See also: Global Weed Brand To Buy Australian Vaporizes For $1.7M In Shares

FLGC Price Action

Flora’s shares traded 10.09% lower at $2.05 per share at the time of writing on Tuesday afternoon.

The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.

Get your tickets now on bzcannabis.com – Prices will increase very soon!