Flora Expands Presence into EU; Signs LOI to Become Long-Term Strategic Partner to Hoshi International
07 June 2021 - 9:30PM
Flora Growth Corp. (NASDAQ: FLGC) (“Flora” or the “Company”), an
all-outdoor cultivator and manufacturer of global cannabis products
and brands, today announced that the Company has signed a Letter of
Intent (“LOI”) for the purpose of making an initial strategic
equity investment of €2M (two-million Euros) into the European
cannabis company, Hoshi International Inc. (“Hoshi”).
“This initial investment into Hoshi is the first
of many steps by Flora to advance its plans to launch Flora-branded
products across the world,” said Luis Merchan, CEO of Flora. “We
believe in backing strong teams with proven track records and
creating synergistic relationships where core competencies have
minimal overlap. The Hoshi team has built a fantastic base in
Europe and by utilizing our low-cost, high-potency product and
established brands, it allows both of our organizations to have a
competitive edge as the European cannabis market continues to grow
rapidly.”
Hoshi is positioned to become a leading
vertically integrated medical cannabis company in Europe. Hoshi was
founded by a group of cannabis entrepreneurs who have built and
scaled several cannabis businesses in the highly regulated cannabis
market in Canada. Flora’s proposed investment into Hoshi will
establish Flora as a preferred strategic supplier to Hoshi’s two EU
processing facilities, located in Malta and Portugal.
Hoshi, through its wholly-owned subsidiary, has
entered into a letter of intent with Malta Enterprise, the economic
development agency for the Republic of Malta, a member of the
European Union, to import, process, produce and distribute finished
cannabis and cannabis derivatives products (the “License”). The
formal License is expected to be issued by the Maltese Medicines
Authority upon inspection and completion of the EU-GMP compliant
cannabis processing facility. Additionally, Hoshi has been awarded
a conditional license for cultivation and processing in Portugal
for both greenhouse and outdoor production.
“We believe this strategic partnership will
provide Flora with a manufacturing footprint in the EU that allows
us to build and distribute Flora-branded products to its customers
in the EU, while also providing a port for the importation of
compliant, high-quality, Colombian outdoor cannabis flower, and
derivatives,” said James Williams, VP of Corporate Development for
Flora.
This strategic investment, anticipated to close
by mid June, is expected to further enhance Flora’s ability to
capitalize on the rapidly evolving European cannabis markets,
providing additional distribution opportunities for Flora’s
portfolio of internationally registered and recognized
cannabis-based products. Flora anticipates leveraging Hoshi’s
experienced team and deep knowledge of global medical and
recreational markets as it explores further opportunities to expand
production and distribution capabilities.
“A partnership with Flora will enable Hoshi to
fast track a number of established initiatives to sell high-quality
GACP flower to the EU market,” said John B. Aird, CEO of Hoshi. “We
look forward to working with the Flora team and accessing not only
their high-end genetics and outdoor-grown cannabis, but also
assisting Flora to distribute more finished products to customers
across the EU.”
Strategic Highlights of the
Investment
- Strategic partnership with a
company that holds European assets, providing Flora with a pathway
to European distribution with the introduction of Flora’s products,
formulations, and brands.
- Alignment between two strong
management teams. Hoshi’s management team has extensive
entrepreneurial and leadership experience in the global cannabis
market.
- Leveraging Hoshi’s various
distribution agreements throughout the European Union, including
the United Kingdom, Germany, and Poland. Additional distribution
agreements are being actively pursued and negotiated.
About Hoshi International Inc.
Hoshi is a European focused, fully integrated
medical cannabis company led by a team of renowned cannabis
entrepreneurs. Hoshi is focused on developing and operationalizing
assets across the global cannabis industry with an emphasis on
cultivating, manufacturing, and distributing cannabis derived
products. Hoshi is uniquely positioned to be a leading provider of
cannabis and derivative products for the emerging European
market.
About Flora Growth Corp.
Flora is a cannabis company that will 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
largest outdoor 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:Evan Veryard +1 416
571 9037evan.veryard@floragrowth.ca
Public Relations Contact:Cassandra Dowell+1
(847) 271-3443cassandra@cmwmedia.com
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: the ability to complete the Hoshi
investment and the timing thereof; the future relationship between
the Company and Hoshi; our expansion plans; 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.
Flora Growth (NASDAQ:FLGC)
Historical Stock Chart
From Apr 2024 to May 2024
Flora Growth (NASDAQ:FLGC)
Historical Stock Chart
From May 2023 to May 2024