Flora Growth Signs Agreement to Distribute Mind Naturals in the Hong Kong Region

Rhea-AI Summary

Flora Growth Corp. (NASDAQ: FLGC) has signed a distribution agreement with DNO Group to bring the Mind Naturals brand to the Hong Kong market. DNO Group boasts over 50,000 sales points across Asia, enabling Flora to leverage an omnichannel strategy, including e-commerce and retail. Future expansion phases will target India and Israel. CEO Luis Merchan emphasized the brand's unique offering in a competitive skincare sector. This partnership follows previous agreements for product launches in Mexico and Spain, expanding Flora's international footprint.

Positive

• Signed distribution agreement with DNO Group for Mind Naturals in Hong Kong.
• Collaboration with a distributor having over 50,000 points of sale in Asia.
• Future expansion plans into India and Israel, indicating growth potential.
• Previous successful product launches in Mexico and Spain enhance brand visibility.

Negative

• None.

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 it has signed a distribution agreement with Israel-based, DNO Group, to distribute the Mind Naturals brand in the Hong Kong region. DNO Group is a leading distributor of global independent brands and has over 50,000 points of sale throughout Asia in addition to its broader global reach.

Through this agreement, Flora will work with DNO to identify growth opportunities and bring the Mind Naturals brand to market in new territories using an omnichannel approach including brick and mortar retail, e-commerce, and other wholesale markets. The initial focus will be on Hong Kong and is expected to be followed by a second phase expanding to India and Israel.

“We are excited to see the continued expansion of Mind Naturals into new international markets, especially those with a high demand for skincare products,” commented Flora Growth CEO, Luis Merchan. “With quality ingredients and a thoughtful customer experience, Mind offers something different in this competitive space. We look forward to working with DNO to bring this unique offering to key markets around the world.”

This announcement is one of a series of new agreements signed with international distributors. Earlier this year, Flora announced Mind Naturals launch through Walmart.com and Coppel, a nationwide department store in Mexico. The launch includes 12 products initially offered on e-commerce with subsequent plans to sell in brick and mortar retail locations. Mind Naturals has also completed initial exports to Spain.

Flora’s Mind Naturals emphasizes the idea that beauty starts in the mind. It is an inclusive brand that uses premium CBD and quality, clean ingredients to develop better-for-you skincare in more sustainable packaging than traditional brands. They were named a trendsetting brand at CosmoProf North America in 2021 for their innovation in sustainable packaging and in December were a top 12 finalist in Glosswire’s Global Pitch Competition, which includes beauty brands from across the globe.

About Flora Growth Corp.

Flora is building a connected, design-led collective of plant-based wellness and lifestyle brands that is designed to deliver one of 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.

Cautionary Statement Concerning Forward-Looking Statements

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: the size of markets for cannabis and cannabis products; the collaboration with third parties; 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/20220314005305/en/

Investor Relations:

Evan Veryard

evan.veryard@floragrowth.com

Public Relations:

Cassandra Dowell

+1 (858) 264-6600

flora@cmwmedia.com

Source: Flora Growth Corp.

FAQ

What recent agreement did Flora Growth Corp (FLGC) sign?

Flora Growth Corp (FLGC) signed a distribution agreement with DNO Group to distribute the Mind Naturals brand in Hong Kong.

What markets are Flora Growth Corp (FLGC) planning to expand into?

Flora Growth Corp (FLGC) plans to expand Mind Naturals into India and Israel after launching in Hong Kong.

How many sales points does DNO Group have in Asia?

DNO Group has over 50,000 sales points throughout Asia.

What is the focus of Flora's Mind Naturals brand?

Mind Naturals emphasizes skincare using premium CBD and clean ingredients, promoting a thoughtful customer experience.

What prior markets has Flora Growth Corp (FLGC) entered recently?

Flora Growth Corp (FLGC) has recently launched Mind Naturals through Walmart.com and Coppel in Mexico, and has completed initial exports to Spain.