Flora Growth Builds a Pathway to Unlocking Shareholder Value
December 13th, 2021
News, Top Story
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.
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.
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.
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.
Follow Us on Social Media
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.