Flora Growth Signs Letter of Intent to Enter Panama, Applauds Recent Cannabis Law Reforms

Rhea-AI Summary

Flora Growth Corp. (NASDAQ: FLGC) has signed a Letter of Intent with Robust Farms Inc., a Panamanian distributor, to supply cannabinoid products through its Kasa Wholefoods division. This follows the recent passage of Bill 153 in Panama, legalizing medical cannabis, which will allow pharmacies to distribute licensed medical cannabis and derivatives. The new law also restricts licenses for production to seven manufacturers. The partnership marks a significant step towards expanding Flora's presence in Central America and providing patients with access to medical-grade cannabis products.

Positive

• Signed a Letter of Intent with Robust Farms Inc. for cannabinoid product distribution.
• Recent legislative changes in Panama create a regulatory framework for medical cannabis, opening access to new markets.

Negative

• None.

• Flora signs Letter of Intent with an international importer and distributor based in Panama to provide cannabinoid containing food and beverages through its Kasa Wholefoods division, and finished cannabis derivative products for medical cannabis patients

• Recent passage of cannabis legislative in Panama legalizes the use of medical cannabis and creates regulatory framework to monitor and control access.

• Pharmacies will be responsible for the distribution of medical cannabis products and will need to apply for a permit and pass a site inspection (valid initially for two years)

• Domestic production will take place, though only seven licenses for the manufacturing of cannabis seeds, plants, and derivatives will be granted

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, is pleased to announce that Flora Growth has entered into a non-binding Letter of Intent (“LOI”) with Robust Farms Inc. (“Robust”), a Panamanian importer and distributor, to supply its premium cannabidiol (“CBD”) derivative products from its Kasa Wholefoods division. Additionally, Robust will be applying for its import license of cannabis products which Flora expects to ship its medical-grade cannabis products upon receipt of this updated licensing.

On August 30^th, Panama’s National Legislative Assembly passed Bill 153 to legalize the use of medical cannabis and its therapeutic properties. It’s expected that Panama will become the first country in Central America to regulate the use of medical cannabis, however, the new regulations must be approved by President Laurentino Cortizo. The new law aims to promote and ensure monitored and controlled access to medical cannabis products by working with a number of government divisions and agencies. Some key highlights of the new legislation include:

• Patients that have been authorized to use medical cannabis based on specific clinical indications will have the right to access medical cannabis products through licensed pharmacies
• Domestic production will take place, though only seven licenses for the manufacturing of cannabis seeds, plants, and derivatives will be granted
• Pharmacies will be responsible for the distribution of medical cannabis products and will need to apply for a permit and pass a site inspection (valid initially for two years)
• The creation of the National Program for the Study of the Medicinal Use of Cannabis and its Derivatives to promote research and develop educational campaigns
• There is no provision for at home cultivation
• Advertising may only appear in scientific journals, not the media or social networks

“It’s important to recognize the continued trend of medical and adult-use cannabis legalization sweeping across the globe as governments increasingly recognize its therapeutic properties, and want to control, regulate, and tax these products to foster economic prosperity, as well as bring significant reform in civil rights and criminal justice,” said Luis Merchan, President and CEO of Flora Growth. “We applaud the efforts of Panamanian legislators and advocacy groups to push forward this initiative that will ultimately help provide options for patients who are looking to improve their quality of life by utilizing emerging cannabinoid therapeutic treatments and look forward to working with local partners to provide our medical-grade cannabis products to the citizens of Panama.”

“We’re extremely pleased to enter into this agreement with Flora in order to pre-emptively secure access to their medical-grade cannabis products – which we believe is the first of its kind to be announced since the cannabis legislation passed – and look forward to supplying our clients with Flora’s premium portfolio of CBD-infused and non-CBD food and beverage products in the short term,” said Maurice Holmes Mendez, CEO of Robust. “While the new proposed framework awaits signature from the President, our team is hard at work building out our traditional and medical cannabis sales channels in the LATAM region, which relies heavily on working with experienced business partners and healthcare practitioners.”

Upcoming CEO Fireside Chat

Flora is also pleased to announce that it will be hosting another live fireside discussion between President & CEO, Luis Merchan, Chief Revenue Officer, Jason Warnock, and Vice President of Corporate Development, James Williams. The virtual fireside conversation will take place Tuesday, September 21^st at 1:00 pm ET, and all those interested in attending are encouraged to register using the following link.

Registration Link:

https://us02web.zoom.us/webinar/register/WN_eRv8cruzS66PSh6FvOV4hA

Specifically, Luis, Jason, and James will provide an overview of the recent Colombian legislative changes and timeline, including discussing the receipt of our export quota, international markets, and our near-term and long-term international product roadmap. An update will be provided regarding the proposed acquisition of Vessel Brand and the closing of our investment into Hoshi International, including their strategic importance to Flora’s international expansion, human capital, and anticipated contribution to revenue growth. Lastly, management will provide an operational update regarding activities at Cosechemos and Flora Lab, including a discussion around specific steps to commercialize our products for export.

About Flora Growth Corp.

Flora is a cannabis company that leverages natural, cost-effective cultivation practices to supply cannabis derivatives to its diverse business divisions of cosmetics, hemp textiles, and food and beverage. As the operator of one of the largest outdoor cultivation facilities, Flora strives to market a higher-quality premium product at below market prices. By prioritizing natural ingredients and value-chain sustainability across its portfolio, Flora creates premium products that help consumers restore and thrive. Visit www.floragrowth.ca 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: Flora’s supply chain strategy; the size of markets for cannabis and cannabis products; 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/20210916005333/en/

Investor Relations Contact:

Evan Veryard

evan.veryard@floragrowth.ca

Public Relations Contact:

Cassandra Dowell

+1 (858) 264-6600

flora@cmwmedia.com

Source: Flora Growth Corp.

FAQ

What is the recent development involving Flora Growth Corp (FLGC) in Panama?

Flora Growth Corp (FLGC) signed a Letter of Intent with Robust Farms Inc. to supply cannabinoid products following the legalization of medical cannabis in Panama.

What does Bill 153 in Panama entail for medical cannabis?

Bill 153 legalizes medical cannabis in Panama, allowing pharmacies to distribute licensed products and creating a regulatory framework to monitor access.

How many licenses for cannabis production are allowed in Panama?

Only seven licenses for the manufacturing of cannabis seeds, plants, and derivatives will be granted under the new regulations.

What products will Flora Growth supply to Panama?

Flora Growth will supply premium cannabidiol (CBD) products and medical-grade cannabis products through its Kasa Wholefoods division.

When did Panama pass the law legalizing medical cannabis?

Panama's National Legislative Assembly passed Bill 153 to legalize medical cannabis on August 30.