Flora Growth Corp. is Encouraged by the Harris Campaign's Hallmark Proposal for Recreational U.S. Federal Cannabis Legalization

Rhea-AI Summary

Flora Growth Corp. (NASDAQ: FLGC) expresses optimism following Vice President Kamala Harris' campaign proposal to legalize recreational marijuana at the federal level. Harris aims to work with Congress to make cultivation, distribution, and possession of recreational cannabis legal across the United States. Currently, recreational marijuana is legal in 24 states and D.C., but remains illegal federally.

Former President Donald Trump has also voiced support for cannabis legalization, pledging to vote for a Florida measure legalizing recreational marijuana. Flora's CEO, Clifford Starke, sees this bi-partisan momentum towards federal cannabis legalization as historic. The company believes legalization would provide clarity for businesses and open doors for communities impacted by outdated cannabis laws.

Flora operates across several regulated markets globally, including the U.S., and is ready to support the development of a federal framework for safe, sustainable, and equitable industry growth.

Positive

• Potential federal legalization of recreational marijuana could provide clarity for cannabis businesses
• Bi-partisan support for cannabis legalization indicates growing political momentum
• Flora Growth is positioned to support and benefit from a federal framework for cannabis regulation

Negative

• None.

Insights

Political Analyst

The proposal for federal cannabis legalization by Vice President Harris represents a significant shift in U.S. drug policy. This move, coupled with former President Trump's support for state-level legalization, signals growing bipartisan momentum for cannabis reform. The potential impact on the industry is substantial:

• Market expansion: Federal legalization could open up a nationwide market, dramatically increasing the addressable consumer base for companies like Flora Growth.
• Regulatory clarity: A uniform federal framework would simplify operations for multi-state operators, potentially reducing compliance costs and operational complexities.
• Banking access: Legalization could resolve banking issues for cannabis businesses, improving access to financial services and capital markets.
• Interstate commerce: The ability to transport cannabis across state lines could optimize supply chains and distribution networks.

However, the road to federal legalization remains uncertain. The proposal's success depends on the outcome of the presidential election and Congressional support. Investors should monitor political developments closely, as they will significantly influence the cannabis industry's growth trajectory and regulatory landscape.

Cannabis Industry Expert

The potential federal legalization of cannabis in the U.S. could be a game-changer for companies like Flora Growth. Key implications include:

• Market expansion: Access to all 50 states could exponentially increase the total addressable market.
• Operational efficiency: Unified federal regulations could streamline operations and reduce compliance costs.
• International trade: Federal legalization might facilitate international cannabis trade, benefiting companies with global operations like Flora.
• Research opportunities: Eased restrictions could accelerate cannabis research, potentially leading to new product developments.

However, challenges remain. The transition to a federally legal market could intensify competition, potentially squeezing margins. Additionally, the specifics of federal regulation, including taxation and licensing, will be important in determining the industry's profitability. Flora's diverse international presence could provide a competitive edge in navigating these changes, but the company must be prepared for a potentially volatile transition period as the market adapts to new federal guidelines.

Fort Lauderdale, Florida--(Newsfile Corp. - October 15, 2024) - Flora Growth Corp. (NASDAQ: FLGC) (FSE: 7301) ("Flora" or the "Company") is optimistic following Vice President and Democratic presidential candidate Kamala Harris' campaign proposal to legalize recreational marijuana at the federal level.

Vice President Harris outlined her commitment to "break down unjust legal barriers" through the national legalization of marijuana, with a focus on cultivating safe, regulated cannabis markets and promoting economic equity. Under this agenda, the Vice President aims to work with Congress to make the cultivation, distribution, and possession of recreational cannabis legal across the United States. Currently, recreational marijuana use is legal in 24 states and the District of Columbia, while cannabis remains illegal at the federal level.

Former President Donald Trump has also recently voiced support for cannabis legalization, pledging to vote in favor of a Florida measure legalizing recreational marijuana that will appear on the state's ballot this fall. Trump's backing of state-level cannabis legalization demonstrates a growing recognition of the economic and social benefits that regulated cannabis markets can bring.

"We are excited to be part of history amid the growing bi-partisan momentum toward federal cannabis legalization in the United States," said Clifford Starke, Chairman and Chief Executive Officer. "At Flora, we believe that federal legalization would not only provide clarity for businesses like ours but also open doors for communities that have been disproportionately impacted by outdated cannabis laws. Legalization is about much more than commerce—it's about righting historical wrongs and fostering a more just economic environment for all."

The Company sees this proposal as a significant move toward harmonizing cannabis regulation across the country. Flora, which operates across several regulated markets globally, including the U.S., stands ready to support the development of a federal framework that ensures safe, sustainable, and equitable growth within the industry.

Mr. Starke added, "As we continue to expand our presence in the U.S. and international markets, a clear and equitable federal cannabis policy is vital. Flora Growth is committed to supporting these efforts and driving meaningful change where we can."

Flora looks forward to continued dialogue with policymakers, stakeholders, and industry peers as the national conversation on cannabis legalization advances with bi-partisan support. The company remains committed to creating economic opportunities and contributing to a fair and inclusive cannabis marketplace.

About Flora Growth Corp.

Flora Growth Corp.'s mission is to become the leading NASDAQ small-cap international cannabis company. Flora 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/226643

FAQ

What is Flora Growth Corp.'s stance on Kamala Harris' proposal for federal cannabis legalization?

Flora Growth Corp. (NASDAQ: FLGC) is optimistic about Vice President Kamala Harris' campaign proposal to legalize recreational marijuana at the federal level, seeing it as a significant move toward harmonizing cannabis regulation across the country.

How might federal cannabis legalization impact Flora Growth Corp. (FLGC)?

Federal legalization could provide clarity for businesses like Flora Growth Corp. (FLGC) and open doors for communities impacted by outdated cannabis laws. It could also support the company's expansion in U.S. and international markets.

What is the current legal status of recreational marijuana in the United States as of October 15, 2024?

As of October 15, 2024, recreational marijuana use is legal in 24 states and the District of Columbia, while cannabis remains illegal at the federal level.

How does Flora Growth Corp. (FLGC) plan to support federal cannabis legalization efforts?

Flora Growth Corp. (FLGC) is committed to supporting the development of a federal framework that ensures safe, sustainable, and equitable growth within the cannabis industry. The company plans to engage in dialogue with policymakers, stakeholders, and industry peers.