Flora Growth’s Commercial Cultivation Progress Enables 2021 THC and CBD Export to International Markets
TORONTO, May 17, 2021 (GLOBE NEWSWIRE) — Flora Growth Corp. (NASDAQ: FLGC) (“Flora”, “Flora Growth”, or the “Company”), an all-outdoor cultivator and manufacturer of cannabis-derived products and brands, is pleased to provide an update on its cannabis cultivation activities in Colombia. The Company is in its eighth week of cultivating high-CBD strains of cannabis utilizing proven growing methodologies, while simultaneously preparing for commercial production of high-THC cannabis scheduled to begin in June 2021. Furthermore, the Company is awaiting the implementation of legislative changes in Colombia which are anticipated to facilitate an expansion of Flora’s wholesale enterprise, as it eyes new international cannabis markets.
Flora’s cultivation farm is in Bucaramanga, Colombia and is licensed to cultivate and process non-psychoactive (high-CBD) and psychoactive (high-THC) cannabis and derivatives on its 247-acre (100 hectares) land package. Flora’s cultivation facility has launched three successful pilot crop plantings with impressive results, including:
- 30 varieties of non-psychoactive cannabis have been tested at the facility;
- Demonstrated a projected industry-leading cannabis production cost of US$0.06/gram;
- Optimized cultivation strategy, yielding over 125 g/plant; and
- Applied for third-party organic and Global G.A.P. certifications in Q1 2020, which are currently awaiting approval. Upon receipt, the Global G.A.P. certification would enable the Company to export its cannabis flower products into international jurisdictions.
The changing cannabis landscape in South America continues to present unique and favorable opportunities for Flora. Recently, the Colombian government announced a bill that would allow for both sale and export of dry flower globally. The law has passed through all requisite levels of the Colombian legislative process and now only awaits a signature from the Colombian President.
“Flora is uniquely positioned, from our low-cost cultivation process in Colombia, to our internationally renowned house of brands, and we could not be more thrilled to be executing on our vision in such an expedited fashion,” said Luis Merchan, President and CEO of Flora. “We selected Colombia for our cultivation as it has the perfect weather conditions for outdoor cannabis cultivation, enabling us to grow high-quality crops at a fraction of the cost of indoor growing, due to the reduction in energy and resource costs. We believe that while cannabis continues to commoditize, the winners of the global supply chain of cannabis derivatives will be those with the lowest production costs who are able to maintain quality. Not only are we able to meet those requirements, but we do it in a sustainable way that supports the local community. While we are only at phase one of our production capacity, we believe that we will quickly meet and surpass the production capacities and standards of existing global operators.”
While the Company prepares for entrance into the psychoactive plant cultivation space, the crop currently in production will be one of the largest outdoor CBD-rich crops at scale and anticipate its harvest will create a robust pipeline of cannabis derivatives for the Company to use in its own products, and for export to multiple international markets.
About Flora Growth Corp.
Flora is a cannabis company that works to leverage natural, cost-effective cultivation practices to supply cannabis derivatives to its diverse business divisions of cosmetics, hemp textiles, and food and beverage. As the operator of one of the world’s largest outdoor cannabis cultivation facilities, Flora strives to market a higher-quality premium product at below market prices. By prioritizing natural ingredients and value-chain sustainability across its portfolio, Flora creates premium products that help consumers restore and thrive. Visit www.floragrowth.ca or follow @floragrowthcorp on social for more information.
Investor Relations Contact:
+1 (416) 571-9037
Public Relations Contact:
+1 (847) 271-3443
Cautionary Statement Concerning Forward-Looking Statements
This document contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including, but not limited to: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this document and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this document and other statements made from time to time by us or our representatives might not occur. Potential risks and uncertainties include, but are not limited to, the risks described in Flora’s filings with the Securities and Exchange Commission. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release or any document referred to in this press release.