Flora Growth Signs Agreement with Artos Ltd. to Send High-THC Cannabis Flower to Israel

Rhea-AI Summary

Flora Growth Corp. (NASDAQ: FLGC) has signed a distribution agreement with Israel-based Artos Ltd. to supply approximately 3,600 kg of high-THC cannabis flower for the Israeli market. Artos, a consumer products distribution company, operates a network of over 4,000 distribution points and generated over $50 million in revenue from non-cannabis products. The agreement aims to expand Flora's offerings in Israel to include oils and, eventually, THC and CBD consumer products, pending Colombian government approvals.

Positive

• Partnership with Artos Ltd. enhances distribution capabilities in Israel.
• Potential to expand product offerings to include oils and consumer products.

Negative

• Export of high-THC cannabis is pending regulatory approval from the Colombian government.

- Flora signs distribution agreement with Israel-based Artos Ltd. to sell approximately 3,600 kg of high-THC cannabis flower for the Israeli market

- Artos Ltd. is a consumer products distribution company with a network of over 4,000 distribution points across the country

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 the Company has signed an agreement with Artos Ltd. (“Artos”) to sell approximately 3,600 kg of dried high-THC cannabis flower to Israel from its Cosechemos cultivation facility.

Through this agreement, Flora Growth seeks to establish a partnership with the Artos team to expand their offering of cannabis products for the Israeli market to also include oils and, when regulations permit, finished THC and CBD consumer products. The export of the high-THC product is pending the dried-flower checklist from the Colombian government from the 2021 update to the cannabis law.

“As Cosechemos continues to reach full-scale commercial production, our team remains focused on increasing our presence in international cannabis markets through distribution agreements that will serve as a gateway into the markets,” said Luis Merchan, CEO of Flora Growth. “With Artos’ extensive distribution network, this agreement will ensure that safe, high-quality cannabis products are provided to the Israeli cannabis market and offer a valuable source of health and wellness products to the country.”

Artos Ltd. is a privately held, Israel-based consumer products distribution company with a network of over 4,000 distribution points across the country, generating over $50 million in revenue from the international sale of non-cannabis products. Artos Ltd. was established in 2007 with a focus to increase access to global consumer products for Israeli citizens. The company employs over 50 workers and looks forward to increasing their market share through this distribution partnership.

About Flora Growth Corp.

Flora is building a design-led collective, of plant-based wellness and lifestyle brands, that delivers 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 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; Flora’s ability to execute on its research and pharmaceutical strategies; the results of Flora’s research; 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/20220216005464/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 is the latest distribution agreement signed by Flora Growth Corp.?

Flora Growth Corp. signed an agreement with Artos Ltd. to sell approximately 3,600 kg of high-THC cannabis flower for the Israeli market.

What is the significance of the agreement between Flora and Artos?

The agreement enhances Flora's presence in the Israeli cannabis market and enables the potential expansion into oils and consumer products.

How many distribution points does Artos Ltd. have in Israel?

Artos Ltd. has over 4,000 distribution points across Israel.

What approvals are needed for Flora to export cannabis to Israel?

Flora must obtain regulatory approval from the Colombian government to export high-THC cannabis products.