Flora Growth’s Newly Acquired, JustCBD, Signs Deal with Distribution Giant OTG Management to Sell CBD Products in Airports

Rhea-AI Summary

Flora Growth Corp. (NASDAQ: FLGC) announced the launch of its JustCBD products in US airports through a partnership with OTG Management. The initial rollout includes sales at Houston's George Bush Intercontinental Airport and Ronald Reagan Washington National Airport in Washington, DC. This venture capitalizes on the growing CBD market, projected to reach $13.28 billion, with a compound annual growth rate of 30.7% from 2021 to 2028. CEO Luis Merchan highlights the significance of this distribution deal for expanding the JustCBD brand's reach.

Positive

• JustCBD products will be available in major US airports, increasing brand visibility.
• Partnership with OTG Management, a leader in airport retail, could lead to expanded product offerings.

Negative

• None.

• Flora’s JustCBD brand will launch sales of its premium CBD products in airports across the US, distributed by distribution company OTG Management
• Initial airports to distribute JustCBD include Houston’s George Bush Intercontinental/Houston Airport (IAH) and Washington, DC’s Ronald Reagan Washington National Airport (DCA)
• JustCBD’s night-time gummies and its regular JustCBD gummies are the first SKUs ordered by OTG Management

MIAMI & TORONTO--(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 newly acquired brand, JustCBD, has signed a deal with airport distribution juggernaut OTG Management to sell their CBD products in airports.

As part of the deal, JustCBD will begin selling its premium CBD products in US airports through distribution company OTG Management, which is a leading operator of airport restaurants and retail storefronts.

“Airport retail sales represent a billion-dollar business and we’re proud to have our JustCBD brand be accepted as one of the first world-class CBD lines of product to be distributed in US airports,” Flora CEO Luis Merchan said. “As Flora continues to execute on its strategy to build a global house of brands and become one of the world’s largest distributors of cannabis derivatives, availability of JustCBD products in airports across the US is a meaningful step forward in our growth. We hope to expand our relationship with OTG as we explore the opportunity their significant footprint represents across our house of brands.”

OTG Management placed orders to distribute JustCBD’s night-time gummies and its regular JustCBD gummies in Houston’s George Bush Intercontinental/Houston Airport (IAH) and Washington, DC’s, Ronald Reagan Washington National Airport (DCA). Flora expects future orders to extend to additional products and other airports in the US.

The CBD gummy market is the fastest-growing segment of the burgeoning CBD industry, with a projected compound annual growth rate of 30.7% from 2021 to 2028, according to Grand View Research, representing a $13.28 billion market opportunity.

About Flora Growth Corp.

Flora is building a connected, design-led collective of plant-based wellness and lifestyle brands delivering the most compelling customer experiences in the world - one community at a time. As the operator of one of the largest outdoor cannabis cultivation facilities, Flora leverages natural, cost-effective cultivation practices to supply cannabis derivatives to its diverse business divisions of cosmetics, hemp textiles, and food and beverage. Visit www.floragrowth.com or follow @floragrowthcorp on social [media] for more information.

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This document contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: expected future revenue, the proposed acquisition of Vessel; Vessel’s financial performance; our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this document and other statements made from time to time by us or our representatives may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, or the forward-looking events discussed in this document and other statements made from time to time by us or our representatives not occurring, except as may be required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220407005388/en/

Investor Relations:

James Williams

james.williams@floragrowth.com

Public Relations:

Cassandra Dowell

+1 (858) 264-6600

flora@cmwmedia.com

Source: Flora Growth Corp.

FAQ

What brand is Flora Growth Corp. launching in US airports?

Flora Growth Corp. is launching its JustCBD brand in US airports.

Which airports will sell the JustCBD products?

JustCBD products will initially be sold at Houston's George Bush Intercontinental Airport and Ronald Reagan Washington National Airport in Washington, DC.

What products will be sold under the JustCBD brand?

The initial products include JustCBD's night-time gummies and regular gummies.

What is the market potential for CBD products?

The CBD gummy market is projected to reach $13.28 billion with a compound annual growth rate of 30.7% from 2021 to 2028.

How does this partnership benefit Flora Growth Corp.?

The partnership with OTG Management enhances the distribution of JustCBD products, supporting Flora's strategy to expand its product offerings and market presence.