Flora Growth Builds a Pathway to Unlocking Shareholder Value

The global cannabis industry will generate more than $30 billion in sales this year according to BDS Analytics, representing a 41% increase over last year’s numbers. While expanding cannabis legalization has been accompanied by a surge in new companies stepping into  the space, few are better positioned than Flora Growth Corp. (NASDAQ: FLGC) with its low-cost production, global brand portfolio, and cutting-edge team.

After raising $34.5 million in November, the company is well-capitalized to build out its Colombian cultivation operations, expand distribution of its 340+ products, and pursue strategic acquisition targets. Management believes that these efforts could lead to between $35 million and $45 million in revenue over the next year.

Exporting Low-Cost Dry Flower

Flora Growth received the Good Agriculture and Collection Practices (“GACP”) certification from the Control Union Medical Cannabis Standard (“CUMCS”) in October. Correlating with recent changes to Colombian legislation, the certificate enables the company to export its high-quality dry cannabis flower to international customers around the world.

This milestone came as Cosechemos, Flora Growth’s flagship cultivation and processing facility, harvested its first non-psychoactive CBD and high-THC cultivars. In addition to achieving greater than anticipated yields on these cultivars, its production costs were just $0.06 per gram of dried flower compared to $1.49 to $2.36 per gram for other licensed producers.

Cosechemos Operations in Colombia

The company has already signed numerous letters of intent to sell and distribute dried flower to the European Union, Australia, and Latin America, paving the way for near-term revenue growth. Due to the low production costs, shareholders can look forward to high margins that could drive long-term value increase.

Building a Brand Portfolio

Flora Growth’s beauty division launched its MIND Naturals and AWE skincare brands on GlossWire and SHOWFIELDS in October. These announcements came shortly after the MIND Naturals brand was featured as a trendsetting product  at the 2021 Cosmoprof North America event for its innovation in biodegradable packaging. MIND Naturals was also named a top 12 finalist in GlossWire’s Global Pitch Competition. The first international orders for both brands will be exported later this month.

Meanwhile, the company’s Hemp Textiles division is leveraging its low cost production and cultivation infrastructure to capture market share in the growing industrial hemp market. Stardog Loungewear, a brand within this division, produces  comfortable and sustainable loungewear from natural, organic materials. Stardog opened its flagship brick-and-mortar store in Miami, Florida in early December.

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Flora Growth further enhanced its brand portfolio in November through the acquisition ofVessel Brand Inc., a leader in luxury cannabis consumer technology to further enhance its brand portfolio. With trailing 12-month revenue of $6.6 million and 90% year-on-year growth, Vessel will contribute meaningfully to Flora Growth’s bottom line, expand its brand portfolio, and add highly skilled  brand builders to its team.

Backed by Strong Leaders

Flora Growth has an exceptional leadership team consisting of former Macy’s executives, an author of Colombian cannabis law, and cannabis, CPG, and capital markets experts who raised over $3 billion in public financings. The team has a proven track record as disciplined operators, brand curators, and category disruptors with a focus on direct-to-consumer brands.

President and CEO Luis Merchan has over ten years of experience in enterprise sales management, corporate strategy, merchandising, and expense management. Before joining Flora Growth, he was Vice President of Workforce Strategy & Operations for Macy’s Inc., where he managed the enterprise’s P&L expense line for a 540-store portfolio.

The board of directors consists of equally seasoned executives. Chairman Bernard Wilson is the former Vice Chairman of Price-WaterhouseCoopers LLP and Chairman of the Founders Board of the Institute of Corporate Directors. Mr. Juan Carlos Gomez formerly served as CEO of the Winner Group, owned by Blackstone.

Looking Ahead

Flora Growth Corp. (NASDAQ: FLGC) has made tremendous progress toward both near-term commercialization and long-term value creation. Investors may want to take a closer look at the stock given these recent developments, particularly as it gears up to export dry cannabis from Colombia and continue to scale its consumer brands into global markets.

For more information, visit the company’s website or download their investor presentation.

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Disclaimer

The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.