Flora Growth Corp. Congratulates President-Elect Donald Trump, Calls for Immediate Action on Cannabis Reform

Rhea-AI Summary

Flora Growth Corp. (NASDAQ: FLGC) congratulates President-Elect Donald Trump on his election victory and urges action on cannabis reform. Trump has expressed support for ending cannabis criminalization and reclassifying marijuana to Schedule 3. While Florida's Amendment 3 for recreational cannabis legalization fell short by 4% (requiring 60%), Nebraska approved legalization, while North and South Dakota voted against it. Flora's CEO Clifford Starke emphasized that cannabis stocks performed well during Trump's first presidency and called for nationwide legalization and SAFE banking implementation. The company views regulated medical framework as beneficial for maintaining market stability and product quality.

Positive

• President-elect's stated support for cannabis reform and rescheduling
• Previous positive performance of cannabis stocks during Trump's first presidency
• Potential implementation of SAFE banking regulations

Negative

• Florida's recreational cannabis amendment failed to pass
• North and South Dakota voted against legalization
• Market concerns about recreational legalization potentially flooding markets and driving down prices

Insights

Market Research Analyst

The election results and Trump's projected cannabis policy stance present mixed implications for Flora Growth and the broader cannabis sector. While Trump's support for rescheduling cannabis to Schedule III and SAFE Banking could benefit the industry, the failed recreational legalization in Florida (falling 4% short) suggests a more measured growth trajectory. The medical-focused approach could actually benefit companies like Flora by maintaining higher price points and controlled market conditions.

The combination of potential federal reform with selective state-level expansion creates a balanced regulatory environment that could support sustainable industry growth while avoiding market saturation. Flora's international experience positions them well to capitalize on gradual U.S. market opening, particularly if federal banking restrictions ease.

Legal Expert

The potential rescheduling of cannabis to Schedule III would mark a significant shift in federal policy, though falling short of full legalization. This change would ease research restrictions and potentially allow cannabis businesses to take standard tax deductions under Section 280E. The SAFE Banking provisions would address critical operational challenges by providing access to traditional banking services and reducing cash-handling risks.

However, the varying state election results demonstrate ongoing regulatory fragmentation. Nebraska's approval versus the Dakotas' rejection highlights the complex patchwork of state regulations companies must navigate, even with federal reform.

Fort Lauderdale, Florida--(Newsfile Corp. - November 6, 2024) - Flora Growth Corp. (NASDAQ: FLGC) (FSE: 7301) ("Flora" or the "Company") extends its congratulations to President-Elect Donald Trump on his successful election to the U.S. Presidency. Flora commends the President-Elect for his statements in support of cannabis reform and urges his administration to prioritize these critical reforms around rescheduling and SAFE banking that will create economic growth, address inequities, and open pathways for significant advancements in the space. Flora also views this as a win for the hemp industry and smoke shops.

According to major media outlets, including CNN, Fox News, NBC and the New York Times among others, Donald Trump has been projected President-Elect.

In the months leading up to the election, President-Elect Trump spoke candidly on his commitment to ending the criminalization of cannabis and how his view of cannabis has become much more advanced and supportive, remarking, it is "time to end needless arrests and incarcerations of adults for small amounts of marijuana for personal use" and expressed his intention to reclassify marijuana to a Schedule 3 drug. President-Elect Trump also indicated that he voted in favor Florida's Amendment 3 asking voters to consider a state constitutional amendment that would allow for the possession, purchase and use of marijuana for non-medical purposes by adults 21 and up.

In response to the election results, Clifford Starke, Chief Executive Officer., praised President-Elect Trump's stance on cannabis, stating, "During President-Elect Trump's first tenure in the White House, cannabis stocks performed well. President-Elect Trump's willingness to address cannabis reform is a powerful signal that the time for change is now. Legalizing cannabis nationwide will not only reduce unnecessary incarceration rates but will also unlock new economic opportunities, empower small businesses, and generate substantial tax revenue. We call for the legalization of cannabis and the passage of SAFE banking. As an international player in the cannabis industry, Flora stands ready to support these efforts in the U.S. by sharing our expertise and working together to realize the vast potential of cannabis for all Americans."

In the election, Florida voters did not pass the ballot measure to legalize recreational cannabis, signaling that while there is progress, there remains room for more measured, regulated growth in the cannabis space. The vote was 56% in favor but 4% short of the required threshold to pass. Voters in Nebraska voted in favor of legalization while voters in North and South Dakota voted against. Recreational legalization can sometimes flood markets, driving down the price per gram, devaluing licenses, and adding competitive pressures that can challenge businesses. In contrast, a focus on medical cannabis provides more controlled market conditions, sustaining higher prices per gram and offering greater product quality oversight. This regulated medical framework allows for strategic growth that benefits both patients and the hemp industry, as it supports cannabis's therapeutic applications while avoiding an influx of non-medical competitors.

About Flora Growth Corp.

Flora Growth Corp.'s mission is to become the leading NASDAQ small-cap international cannabis company. FLGC is a cannabis-focused consumer-packaged goods leader and pharmaceutical distributor serving all 50 states and 28 countries with 20,000+ points of distribution around the world. For more information on Flora, visit www.floragrowth.com.

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Investor Relations:

Investor Relations ir@floragrowth.com
Clifford Starke Clifford.Starke@floragrowth.com

Media:

media@floragrowth.com

Cautionary Statement Concerning Forward-Looking Statements

This press release contains "forward-looking statements," as defined by U.S. federal securities laws. Forward-looking statements reflect Flora's current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words "believe," "expect," "anticipate," "will," "could," "would," "should," "may," "plan," "estimate," "intend," "predict," "potential," "continue," and the negatives of these words and other similar expressions generally identify forward-looking statements. Such forward-looking statements are subject to various and risks and uncertainties, including those described under section entitled "Risk Factors" in Flora's Annual Report on Form 10-K filed with the United States Securities and Exchange Commission (the "SEC") on March 28, 2024, as such factors may be updated from time to time in Flora's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov/edgar. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Flora's filings with the SEC. While forward-looking statements reflect Flora's good faith beliefs, they are not guarantees of future performance. Flora disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based on information currently available to Flora (or to third parties making the forward-looking statements).

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/229046

FAQ

What was the outcome of Florida's Amendment 3 for FLGC and cannabis stocks?

Florida's Amendment 3 for recreational cannabis legalization received 56% support but failed to pass as it fell 4% short of the required 60% threshold.

How did cannabis stocks perform during Trump's previous presidency according to FLGC?

According to Flora Growth Corp. (FLGC), cannabis stocks performed well during Trump's first tenure in the White House.

What cannabis reforms is President-Elect Trump supporting according to FLGC?

According to the PR, Trump supports ending criminalization of cannabis, reclassifying marijuana to Schedule 3, and ending arrests for small amounts of marijuana for personal use.