Flora Growth Corp. Provides Update on Hoshi Investment in Portugal
Flora Growth Corp reports progress on its Hoshi International investment in Portugal. Hoshi secured a new financial partner in 2023 who assumed capital expenditures for equity. Key developments include completion of a 1,200-square meter greenhouse with 1,500 kg/year capacity, obtaining GACP license, and receiving 70 cannabis clones. The facility employs 18 full-time staff with $20M invested to date. Flora's initial $2.4M investment secured 10% ownership in Hoshi, which controls 51% of the Portuguese operation. First commercial harvest is expected in 2025. Flora plans to explore EU-GMP license expansion from Germany through Hoshi collaboration for direct sales channel.
Flora Growth Corp riporta progressi sul suo investimento in Hoshi International in Portogallo. Hoshi ha ottenuto un nuovo partner finanziario nel 2023 che ha assunto le spese in conto capitale per il capitale sociale. I principali sviluppi includono il completamento di una serra di 1.200 metri quadrati con una capacità di 1.500 kg/anno, l'ottenimento della licenza GACP e la ricezione di 70 clonazioni di cannabis. La struttura impiega 18 dipendenti a tempo pieno con un investimento di 20 milioni di dollari fino ad oggi. L'investimento iniziale di Flora di 2,4 milioni di dollari ha garantito una proprietà del 10% in Hoshi, che controlla il 51% dell'operazione portoghese. Il primo raccolto commerciale è previsto per il 2025. Flora intende esplorare l'espansione della licenza EU-GMP dalla Germania attraverso la collaborazione con Hoshi per un canale di vendita diretto.
Flora Growth Corp informa sobre el progreso de su inversión en Hoshi International en Portugal. Hoshi consiguió un nuevo socio financiero en 2023 que asumió los gastos de capital por acciones. Los desarrollos clave incluyen la finalización de un invernadero de 1,200 metros cuadrados con una capacidad de 1,500 kg/año, la obtención de la licencia GACP y la recepción de 70 clones de cannabis. La instalación emplea a 18 empleados a tiempo completo con una inversión de 20 millones de dólares hasta la fecha. La inversión inicial de Flora de 2.4 millones de dólares aseguró el 10% de propiedad en Hoshi, que controla el 51% de la operación portuguesa. Se espera que la primera cosecha comercial tenga lugar en 2025. Flora planea explorar la expansión de la licencia EU-GMP desde Alemania a través de la colaboración con Hoshi para un canal de ventas directo.
플로라 성장 주식회사는 포르투갈의 호시 인터내셔널 투자 진전을 보고합니다. 호시는 2023년 새로운 금융 파트너를 확보했으며, 해당 파트너는 자본 지출을 주식으로 인수했습니다. 주요 발전 사항으로는 1,200 제곱미터의 온실 완공 및 연간 1,500 kg의 생산능력 확보, GACP 라이선스 취득, 70개의 대마 클론 수령 등이 있습니다. 이 시설은 18명의 정규직 직원을 고용하고 있으며, 현재까지 2천만 달러가 투자되었습니다. 플로라의 초기 240만 달러 투자는 호시에 대한 10%의 소유권을 확보했으며, 호시는 포르투갈 운영의 51%를 통제하고 있습니다. 첫 상업적 수확은 2025년에 예상됩니다. 플로라는 호시와의 협력을 통해 독일에서 EU-GMP 라이선스 확장을 탐색할 계획입니다.
Flora Growth Corp fait état des avancées de son investissement dans Hoshi International au Portugal. Hoshi a sécurisé un nouveau partenaire financier en 2023 qui a pris en charge les dépenses d'investissement pour le capital. Parmi les développements clés, on trouve la réalisation d'une serre de 1 200 mètres carrés avec une capacité de 1 500 kg/an, l'obtention de la licence GACP et la réception de 70 clones de cannabis. L'installation emploie 18 membres du personnel à temps plein avec un investissement de 20 millions de dollars à ce jour. L'investissement initial de Flora de 2,4 millions de dollars a permis de sécuriser 10 % de la propriété dans Hoshi, qui contrôle 51 % de l'exploitation portugaise. La première récolte commerciale est attendue en 2025. Flora prévoit d'explorer l'expansion de la licence EU-GMP depuis l'Allemagne grâce à une collaboration avec Hoshi pour un canal de vente direct.
Flora Growth Corp berichtet über Fortschritte bei seiner Investition in Hoshi International in Portugal. Hoshi sicherte sich 2023 einen neuen finanziellen Partner, der die Kapitalausgaben für Eigenkapital übernahm. Zu den wichtigsten Entwicklungen gehört der Abschluss eines Gewächshauses mit 1.200 Quadratmetern und einer Kapazität von 1.500 kg/Jahr, die Erlangung einer GACP-Lizenz sowie der Erhalt von 70 Cannabis-Klonen. Die Einrichtung beschäftigt 18 Vollzeitmitarbeiter, und bis heute wurden 20 Millionen Dollar investiert. Die ursprüngliche Investition von Flora in Höhe von 2,4 Millionen Dollar sicherte 10% der Anteile an Hoshi, das 51% des portugiesischen Betriebs kontrolliert. Die erste kommerzielle Ernte wird für 2025 erwartet. Flora plant, die Erweiterung der EU-GMP-Lizenz über eine Zusammenarbeit mit Hoshi für einen direkten Vertriebskanal aus Deutschland zu erkunden.
- Secured new financial partner covering capital expenditures
- Completed 1,200-square meter greenhouse with 1,500 kg/year capacity
- Obtained GACP production and processing license
- Facility represents $20M total investment
- Strategic position for European market access
- Commercial harvest not expected until 2025
- Hoshi's ownership stake will be reduced to 25% as milestones are met
- Flora holds only 10% ownership in Hoshi
Insights
This development represents modest progress for Flora Growth's European expansion strategy. The
The Portuguese operation's strategic value lies in its potential to serve as a low-cost production hub for the German market, where Flora already holds EU-GMP certification. However, Hoshi's reduced ownership stake to 25% in the Portuguese entity will limit Flora's economic benefit. The
Facility Received GACP License, First Commercial Harvest Expected in 2025
Fort Lauderdale, Florida--(Newsfile Corp. - October 23, 2024) - Flora Growth Corp. (NASDAQ: FLGC) (FSE: 7301) ("Flora" or the "Company") is pleased to announce important progress on its strategic investment in Hoshi International Inc. ("Hoshi") in Portugal. This update highlights the ongoing developments since Hoshi secured a new financial partner in 2023, which has accelerated the advancement of its operations.
Hoshi's new financial partner agreed to take over the capital expenditures and operational expenses in exchange for an equity stake in the company. As a result of this collaboration, Hoshi has made headway in the following areas:
- Facility Construction: Completing the first phase of construction at the facility, which includes a 1,200-square meter greenhouse with a production capacity of up to 1,500 Kilograms per year.
- Licensing Inspection: Conducting a licensing inspection by the Portuguese regulator and receiving its good agricultural and collecting practice ("GACP") production and processing license.
- Cannabis Clones: Receiving the first 70 cannabis clones as part of the pre-licensing process.
The project in Portugal currently employs 18 full-time staff. To date, approximately
"We are pleased with the strides Hoshi has made over the past 18 months. Our investment in the European cannabis market aligns with our strategy. We believe that Hoshi's facility will become a key player in the European cannabis landscape, particularly as the market continues to evolve and move forward," said Clifford Starke, Chief Executive Officer.
Flora initially made an equity investment of
"We remain confident in Hoshi's ability to deliver on its goals and timelines. The GACP certifications and expected commercial harvest in 2025 are important inflection points, both for Flora and Hoshi, as we capitalize on the growing demand for high-quality cannabis in Europe," concluded Mr. Starke.
Flora is exploring the expansion of its EU-GMP license from Germany by collaborating with Hoshi to establish a direct sales channel. This strategic move would allow Flora to secure a long-term supply of high-quality medical cannabis from Hoshi's operations, based in a low-cost and favorable jurisdiction.
Portugal has emerged as an attractive jurisdiction for cannabis production, offering a strategic advantage for meeting the demands of Germany and the broader European market. With its fit-for-purpose cannabis cultivation and processing facilities, Portugal provides ideal conditions for producing high-quality medical cannabis that aligns with stringent European standards. The country's logistics infrastructure allows for efficient distribution across Europe, while its reduced VAT regime and lower operational costs make it a suitable location for cannabis companies.
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
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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. These forward-looking statements include, but are not limited to, statements about:, Hoshi operating its facility to the required GACP specifications or at all, Flora's ability to maintain its current or any ownership stake in Hoshi, Hoshi's ability to utilize and benefit from the greenhouse, Hoshi's ability to produce cannabis, the facility reaching an operating capacity of 1,500 Kilograms per annum or any capacity at all, the financial partners of Hoshi continuing ability and willingness to fund Hoshi's capital and operating expenditures, the first commercial harvest taking place in 2025, and Hoshi making any further progress to advance its operations. 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/227529
FAQ
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