Benzinga | Aug 10, 2021 07:27AM EDT

Flora Growth Fulfills Initial Purchase Order of ~$1.1M to Largest Colombian Food and Beverage Distributor

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 completed its first purchase order, valued at approximately US$1.1M, to Importaciones y Asesorias Tropi S.A.S. ("Tropi") as part of the sales agreement announced in July. Flora expects Kasa to complete similar deliveries on a monthly basis moving forward.

Kasa intends on leveraging this initial sales agreement with Colombia's largest consumer packaged goods ("CPG") distributor to generate additional sales of its entire food and beverage product portfolio in Colombia. Given the recently announced cannabis law changes in Colombia that will allow for the production and marketing of cannabinoid-containing ingestible products, Kasa will look to maximize the value of the relationship and amplify revenue growth of its CBD product portfolio. This agreement exemplifies Flora Growth's strategy of building out its distribution channels and sales relationships utilizing high-quality traditional CPG products, underpinned by its low-cost, high-margin cannabis raw materials.

"We believe this initial sale demonstrates Flora's ability to rapidly follow through on its commitments and marks a major turning point for our Kasa Wholefoods division. We expect this relationship with Tropi to generate significant revenue potential in both the short and long term as we build upon a relationship with the leading food and beverage distributor in Colombia," said Jason Warnock, Chief Revenue Officer of Flora. "Moving forward, we will work to increase monthly sales to our target of US$2M, including foraying into the newly permitted product category of cannabis-containing ingestible products that will offer increased wellness properties for end consumers."