Benzinga | Jul 29, 2021 08:03AM EDT

Flowr Corp Confirms Its First Sale Of Medical Cannabis In Portugal, Largest To Date In European Union

The Flowr Corporation (TSX.V: FLWR) (OTCPK: FLWPF) announced the first sale of medical cannabis from its outdoor facility in Aljustre, Portugal via its wholly-owned subsidiary RPK Biopharma Unipessoal, Ltd, representing the largest known medical cannabis bulk sale transaction in the European Union to date.

The Toronto-headquartered company revealed on Wednesday that RPK Biopharma Unipessoal, Ltd. has signed a supply agreement with Galaxiavertical - Unipessoal Lda. Under the deal, Galaxia agreed to buy high THC medical cannabis biomass for around $750,000.

The company highlighted that the new supply agreement, which is still subjected to specific approvals, represents considerable revenue from a single transaction and supports future business model cultivating outdoors in Portugal.

"This Supply Agreement is a major step forward in the development of the Company's European strategy," Darryl Brooker, CEO of Flowr stated. "Last year, we were able to successfully grow medical cannabis outdoors over more than 30 acres. The results showed that the Aljustrel site is the ideal location to grow outdoor medical cannabis and with a cost structure that will make our product very competitive as an input for medical cannabis derivative products, such as tinctures. We expect Galaxia to take receipt of the product by year-end and look forward to working with them in the future as they develop their extraction business in Portugal."

European Medical Cannabis Market

The European medical cannabis market has been developing as many EU countries are updating their medical cannabis regulations. According to Brightfield, the market should generate more than $570 million this year, and hit higher than $3.11 billion by 2025.

Last October, Flowr finalized the harvest of the "largest known outdoor medical cannabis project in the EU," cultivating more than 40,000 plants and achieving high THC potency.

The move comes on the heels, of the company's $550,000 non-brokered private placement offering of 2.62 million units at 21 cents per unit. Flowr noted it would use the collected net proceeds to partially repay its outstanding indebtedness and for standard corporate activities.

Price Action

Flowr shares closed Wednesday's market session 0.23% higher at 15 cents per share.

Photo: Courtesy of Kym MacKinnon on Unsplash