Benzinga | Jul 12, 2021 07:32AM EDT

Flora Growth Signs Sales Agreement With Colombian Distributor Tropi; Co. Expects Agreement To Generate Up To $10M In Expected Annual Sales

* Flora's Food and Beverage division, Kasa Wholefoods has signed an initial 1-year distribution agreement to supply food products to Colombia's largest food distributor, Tropi.

* Tropi reaches over 130,000 distribution points across 38 cities in Colombia.

* Kasa Wholefoods anticipates this initial agreement to generate additional sales of its CBD and hemp portfolio, expects sales to reach approximately US$2M per month.

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 its food and beverage division, Kasa Wholefoods Company S.A.S. ("Kasa") has signed an initial one-year sales agreement with Importaciones y Asesorias Tropi S.A.S. ("Tropi"). Flora expects this agreement to generate up to US$10 million based on today's exchange and market rates to deliver premium and sustainable canned products, including products that target the health benefits of hemp seed oil.

Kasa intends on leveraging this initial sales agreement with Colombia's largest CPG distributor to generate additional sales of its entire product portfolio. This agreement exemplifies Flora Growth's strategy of building out its distribution channels and sales relationships utilizing high-quality traditional CPG products, with the near-term opportunity to incorporate cannabinoid-containing products to maximize the value of the relationship and amplify revenue growth.

"We believe that this sales agreement is a significant milestone for Kasa. We expect it to generate significant revenue, while allowing our brands to build upon a relationship with one of the leading food and beverage distributors in Colombia," said Jason Warnock, Chief Revenue Officer of Flora. "This agreement connects our established premium and sustainable supply chain to significantly more customers and points of consumer distribution, all the while providing dependable, contracted revenue."

"We're thrilled about this distribution agreement with Tropi. The breadth of their network and experience in working with health and wellness-focused brands will prove invaluable to our expansion strategy," said Luis Merchan, President and CEO of Flora. "We're proud to partner with another company that shares a legacy of quality products and serving its communities. Their extensive distribution and logistics models, strong selling capabilities, and complementary brand portfolio will undoubtedly increase our ability to reach consumers."

Flora Announces CEO Fireside Highlighting Recent Developments

Further, Flora Growth will be hosting another live fireside discussion between President & CEO, Luis Merchan, Chief Revenue Officer, Jason Warnock, and Lead Scientific Advisor, Dr. Annabelle Manalo-Morgan. The virtual fireside conversation will take place Thursday, July 15th at 1:00 pm ET, and all those interested in attending are encouraged to register using the following link.