Benzinga | Sep 16, 2021 09:19AM EDT

Flora Growth Gears Up, Plans To Enter Panama Amid European Expansion

Flora Growth Corp. (NASDAQ:FLGC) revealed its plans to team up with Robust Farms Inc. to supply its premium cannabidiol derivative products from its Kasa Wholefoods division.

The move follows the recent closing of a (euro)2 million ($2.36 million) investment in Hoshi International Inc. as part of its expansion plan in Europe.

The company said Thursday that it has entered into a non-binding Letter of Intent with the Panamanian importer and distributor to provide cannabinoid-containing food and beverages through its Kasa Wholefoods division and finished cannabis derivative products for medical cannabis patients.

The move follows the recent passage of a bill to legalize the use of medical cannabis and its therapeutic properties in Panama, which is now poised to become the first country in Central America to do so.

Maurice Holmes Mendez, CEO of Robust said he is thrilled to partner with Flora Growth.

The agreementwith Flora secures "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," Mendez added.

Flora Growth also announced that Robust intends to apply for its import license of cannabis products which Flora expects to ship upon receiving this updated licensing.

"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," Luis Merchan, president and CEO of Flora Growth commented.

Panama's Medical Cannabis Bill

Under the new bill, pharmacies in Panama will oversee the distribution of medical cannabis products upon receiving a permit and passing a site inspection.

In addition, domestic production will take place, with seven licenses for the manufacturing of cannabis seeds, plants and derivatives that will be granted.

Price Action

Flora Growth's shares traded 3.33% higher at $6.2 per share during pre-market hours Thursday morning.

Photo: Courtesy of CBD Infos on Unsplash