OUR NEW PROFILE IS: (NASDAQ: FLGC)
Flora’s premium portfolio includes 5 divisions, with 280+ products, and over 70+ medical/cosmetic/other licenses
FLGC leverages natural, cost-effective cultivation practices to supply cannabis derivatives to its diverse business division
The Cosechemos cultivation farmis licensed to cultivate 247 acres (100 hectares) of MJ
Listen to the CEO Interview from just a few sessions ago:
- The first batch of crude oil has been extracted, where the product was submitted to the Colombian Government to obtain Flora’s 2022 quota for High-THC derivatives, building on Flora’s existing quota of 7,900 kg of dried High-THC flower
- Cosechemos has initiated the pre-audit process for EU-GMP certification, which will enable export of medical-grade cannabis derivatives to international markets when paired with its existing GACP certification
MIAMI & TORONTO, January 11, 2022–(BUSINESS WIRE)–Flora Growth Corp. (NASDAQ: FLGC) (“Flora” or the “Company”), a leading all-outdoor cultivator and manufacturer of global cannabis products and brands, announced today that its wholly owned subsidiary, Cosechemos, has produced the first batch of crude oil through its newly constructed extraction facility. Further, Cosechemos has initiated the process to become EU-GMP certified. The completed facility will serve as the Company’s primary processing hub, facilitating the drying and processing of Flora’s all-outdoor cultivated flower into finished, packaged dry flower and extracted material for domestic production and export to wholesale cannabis markets.
In December of 2021, Flora’s laboratory quality assurance and regulatory team completed the installation and testing of all extraction equipment. The team successfully extracted the first batch of High-THC crude oil, where the product was submitted to the Colombian Government to obtain Flora’s 2022 quota for THC derivatives. At this time, the team is continuing commercial CBD extraction.
With this major milestone complete, the company has initiated pre-audit work for the completion of the EU-GMP certification. Upon receipt of EU-GMP certification, and when paired with Flora Growth’s recent Good Agricultural and Collection Practices (GACP) certification, Flora will be positioned to target international medical cannabis markets. Flora intends on leveraging its cost advantage – with the Company’s low-cost, outdoor-cultivated cannabis grown as inexpensively as 6 cents per gram – to penetrate international medical cannabis markets with its low-cost dried flower and derivatives.
“Global cannabis markets are growing at an incredible rate, and Flora is ready to meet that demand for cannabis-derivatives with the completion of our new EU-GMP compliant extraction facility in Colombia,” said Luis Merchan, President and CEO of Flora Growth. “This is another major step for Flora Growth, as we are now in a position to seek EU-GMP certification, with the ultimate goal of disrupting the global cannabis derivatives market with our low-cost product. Further, the completion of the facility immediately allows us to supply extracts and derivatives to our CPG portfolio, including Flora Beauty and Kasa brands, unlocking additional cost efficiencies.”
Flora Growth’s post-harvest and extraction facility stands at 10,500 square feet at Flora’s cultivation site in Bucaramanga, Colombia, bringing total extraction capacity to over 15,000 litres of distillate annually. The new facility is fully automated and features cryo-ethanol extraction that yields economical and high-quality cannabinoid derivatives at high-throughput. The facility expedites Flora’s ability to produce dried and packaged flower, derivatives, distillate, and finished goods entirely in-house.
“Being fully integrated, with internal processing, paired with our expanding distribution channels, was a strategic decision and one that we believe will have long-term benefit as the cannabis derivatives market further stabilizes and expands,” said Jason Warnock, CRO of Flora Growth. “This new facility will also help to increase the range of our product offerings, so that our team can not only produce high-quality cannabis flower, but also produce derivatives and active pharmaceutical ingredients (or APIs) for international medical markets.”
- The company listed on the NASDAQ this past year which will provide it with a broader audience and more visibility.
- With possible cann-a-bis legalization on the horizon in the United States, a potential $40Bn TAM cann-a-bis supply/demand gap could be created.
- Colombia is poised to become a global low-cost leader in cann-a-bis production.
- Flora Growth’s core division is Cosechemos, a cann-a-bis cultivation and extraction facility located in Bucaramanga, Colombia.
- Cosechemos’ 10.8 million square feet (247 acres) of licensed cultivation area can make Flora Growth a substantial cultivator in the cann-a-bis industry.
- Cosechemos holds rights to an additional 5,268 acres licensed in Puerto Boyaca, Santander, to increase the scale of its cultivation as required.
- Flora recently announced it has expanded into the United Kingdom (the “UK”) and Costa Rica, fulfilling initial orders from two new distributors.
- Flora’s premium portfolio includes 5 divisions, with 280+ products, and over 70+ medical/cosmetic/other licenses.
- The company has a healthy balance sheet including minimal debt and recently completed a $30Mn USD Pre-IPO Equity Financing.
- Flora has an accomplished management team; combined, they have raised over $3Bn in public financings and listed in excess of 50 public companies.
FLORA’S NATURAL CANNABIS
Flora Growth’s core division is Cosechemos, a cannabis cultivation and extraction facility located in Bucaramanga, Colombia. This division was established to produce natural, high-quality cannabis derivatives to be sold through wholesale and retail channels to the global cannabis market.
From the ground up, Flora is building a foundation designed to exceed customer expectations through purpose-built EU-GMP compliant or equivalent facilities for cultivation, extraction, and manufacturing.
With rampant uncertainty in product quality across the cannabis industry, Flora’s objective is to offer a reliable and affordable cannabis solution. By controlling product quality across our value chain, we believe that we can confidently meet the stringent standards in our target countries.
Manufacturing & Distribution
Flora Growth manufactures the majority of its products through its Flora Lab division, a manufacturing and R&D center. This division is underpinned by a 16,000 sq.ft. facility with a modern laboratory that holds multiple GMP certifications. Flora Lab currently manufactures and distributes 60+ OTC products registered with INVIMA across 1,500+ distribution channels.
- 30 varieties of non-psychoactive cann-a-bis tested. Demonstrated production cost of $0.06/gram.
- Optimized cultivation strategy, yielding over 125 grams/plant.
- Initiated third-party organic and global G.A.P. certification in Ql 2020.
- Cosechemos’ extraction facility is currently under construction, with completion expected in Q3 2021. It will be built to EU-GM P standards, and immediately seek EU-GMP certification, Cosechemos plans to cultivate 49 acres in 2021; 9 acres for CB and 40 acres for T-H-C.
- Additionally, Cosechemos holds rights to an additional 5,268 acres licensed in Puerto Boyaca, Santander, to increase the scale of its cultivation as required.
Favorable Growing Conditions.
- 12.8 hours of daily sunlight, 365 days/year
- Consistent 3 mph wind, decreases incidence of plant-harming pathogens
- Organic nutrient-rich soil allows for high density planting
- Long-term monthly lease of only US$10/acre, with purchase option
- Six natural spring water deposits on site: water cost $0
- Low utility costs at less then US$150/month
- 3+ years of evaluating strains to perfect growing economics
- Developing unique organic agronomic management system tailored to Cosechemos’ climate and conditions
- Optimized cultivation strategy to obtain 3+ harvests per year (1.5-3X more than peers), high productivity per area and a high-quality product.
- Avg. cost $1.89/gram (source 5) & 20 °F / 6.4-hours of daylight
- Most grown indoor using artificial light with substantial energy costs and waste
- Significant costs only to try and reproduce ideal outdoor growing environment of Colombia
FLORA GROWTH RECEIVES GOOD AGRICULTURAL AND COLLECTION PRACTICES (GACP) CERTIFICATION, OPENING PATHWAY TO DRY FLOWER EXPORT
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