Flora expands its presence in the EU; Sign a letter of intent to become
- Hoshi’s infrastructure will serve as a gateway for Flora’s Colombian cannabis distribution and product portfolio in the European Union (“EU”)
- Hoshi’s experienced management team and global distribution network will serve as a catalyst for the revenue growth of Flora’s operating divisions.
- The initial capital investment proposed by Flora de €2M (two million euros) to accelerate expansion projects in Portugal and Malta
TORONTO, June 07, 2021 (GLOBE NEWSWIRE) – Flora Growth Corp. (NASDAQ: FLGC) (“Flora” or the “Company”), a global grower and manufacturer of cannabis products and brands, today announced that the Company has signed a Letter of Intent ( “LOI”) with the aim of making an initial strategic investment of 2 million euros (two million euros) in the European cannabis company, Hoshi International Inc. (“Hoshi”).
“This initial investment in Hoshi is the first of Flora’s many steps to advance its plans to launch Flora brand products around the world,” said Luis Merchan, CEO of Flora. “We believe in supporting strong, proven teams and creating synergistic relationships where core competencies overlap as little as possible. The Hoshi team have built a fantastic base in Europe and by using our low cost, high potency product and established brands, this allows both of our organizations to have a competitive advantage as the European cannabis market continues to grow rapidly. .
Hoshi is well positioned to become one of the leading vertically integrated medical cannabis companies in Europe. Hoshi was founded by a group of cannabis entrepreneurs who created and developed several cannabis companies in the highly regulated cannabis market in Canada. Flora’s proposed investment in Hoshi will make Flora a preferred strategic supplier to Hoshi’s two European processing plants, 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 of 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 official license should be issued by the Maltese Medicines Authority upon inspection and completion of the EU GMP compliant cannabis processing facility. In addition, Hoshi has obtained a conditional license for cultivation and processing in Portugal for greenhouse and outdoor production.
“We believe this strategic partnership will provide Flora with a manufacturing footprint in the EU that will allow us to build and distribute Flora branded products to its customers in the EU, while also providing a port for the import of Colombian compliant and high quality products. outdoor cannabis flower and derivatives, ”said James Williams, vice president of business development for Flora.
This strategic investment, expected to close by mid-June, should further enhance Flora’s ability to capitalize on the rapidly evolving European cannabis markets, providing additional distribution opportunities for the portfolio of cannabis-based products. Cannabis from Flora registered and recognized internationally. Flora plans to leverage Hoshi’s experienced team and in-depth knowledge of the global medical and recreational markets as she explores new opportunities to expand her production and distribution capabilities.
“A partnership with Flora will allow Hoshi to accelerate a number of initiatives established to sell high quality GACP flowers in the EU market,” said John B. Aird, CEO of Hoshi. “We look forward to working with the Flora team and accessing not only their premium genetics and outdoor-grown cannabis, but also helping Flora distribute more end products to customers across the world. EU. “
Strategic highlights of the investment
- Strategic partnership with a company that owns European assets, offering Flora a path to European distribution with the introduction of Flora 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.
- Take advantage of Hoshi’s various distribution agreements across the European Union, including UK, Germany and Poland. Additional distribution agreements are actively sought and negotiated.
About Hoshi International Inc.
Hoshi is a fully integrated, Europe-focused medical cannabis company led by a team of renowned cannabis entrepreneurs. Hoshi focuses on the development and operationalization of assets in the global cannabis industry, with an emphasis on the cultivation, manufacture and distribution of cannabis-derived products. Hoshi is uniquely positioned to be one of the leading suppliers of cannabis and related products to the emerging European market.
About Flora Growth Corp.
Flora is a cannabis company that will take advantage of natural and profitable growing practices to supply cannabis derivatives to its various cosmetics, hemp textiles, food and beverage business divisions. As the operator of one of the largest outdoor growing facilities, Flora strives to bring a premium premium product to market at prices below market prices. By prioritizing natural ingredients and value chain sustainability in its portfolio, Flora creates premium products that help consumers restore themselves and prosper. Visit www.croissanceflorale.ca or follow @floragrowthcorp on social media for more information.
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Caution Regarding 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 regarding future events, which we derive from information currently available to us. These forward-looking statements relate to future events or our future performance, including: the ability and timing of the Hoshi investment to complete; the future relationship between the Company and Hoshi; our expansion plans; our financial performance and projections; our revenue and profit growth; and our business prospects and opportunities. You can identify forward-looking statements by those which are not historical in nature, particularly those which use terms such as “may”, “should”, “expects”, “anticipates”, “considers”, “believes”. “,” Estimate, “plans”, “projected”, “predicted”, “potential” or “hope” or the negative of these terms or the like. In evaluating these forward-looking statements, you should consider a number of factors, including: our ability to change the direction of the Company; our ability to keep pace with new technologies 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 statements. Forward-looking statements are only predictions. The forward-looking events described 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. our subject. We are not obligated to publicly update or revise any forward-looking statement, whether due to uncertainties and assumptions, the forward-looking events described in this document and other statements made from time to time by us or our reps might not be happening.