Flora says that the House of Brands and Commercial & Wholesale divisions will have roughly equal contributions to the top line, while the pharmaceutical division is expected to contribute up to 10% of total revenue.

Luis Merchan, the CEO of Flora Growth.

“We are pleased to announce that we will meet our guidance for 2022 and are issuing revenue guidance of $90 million – $105 million for the year 2023,” said Luis Merchan, Chairman and CEO of Flora. “Our 2023 forecasted revenue range represents anticipated growth in excess of 100% over last year and highlights our continued momentum, despite a challenging macroeconomic backdrop that has disproportionately impacted the cannabis industry.”

Operating Highlights for 2022 Included:

• Acquired Franchise Global Health (FGH), an international cannabis company with primary operations in Germany.
• Raised gross proceeds of $5 million through a registered direct offering, further bolstering Flora’s liquidity position.
• Initiated commercial cannabis exports to new international markets including the United States, Switzerland and the Czech Republic.
• Completed acquisition of category-leading wellness brand JustCBD; expanding U.S. infrastructure and CPG portfolio.
• Completed construction of Bogota, Colombia-based Flora Lab 4, a laboratory specializing in prescription cannabis formulations.
• Flora appointed former Amazon executive Tim Leslie and former JP Morgan executive Brandon Konigsberg to its Board of Directors, named CEO Luis Merchan as Chairman of the Board of Directors, appointed former Amazon executive Elshad Garayev as Chief Financial Officer, and hired cannabis regulatory veteran Holly Bell as Vice President of Regulatory Affairs.
• As a result of the FGH acquisition, Flora appointed former FGH CEO Clifford Starke as President of Flora and Member of the Board of Directors and former FGH Chief Operating Officer Edward Woo as a member of the Board of Directors.
• Flora established JustCBD’s on-the-ground presence in the United Kingdom and distribution operations in the EU, opening offices in London.
• Flora acquired CBD brands Masaya and No Cap Hemp Co., enhancing new product offerings and revenue streams.
• Flora was awarded Best M&A Deal at the Benzinga Cannabis Capital Conference for the acquisition of JustCBD.

“As our global distribution network continues to evolve, adding these three industry-leading countries to our footprint is a major milestone for Flora,” commented CEO and Chairman Luis Merchan. “Our cultivation operation in Colombia, which provides high-quality, high-margin flowers and derivatives, has experienced increasing demand. These exports are a testament to our team’s ability to execute in a very complex global regulatory environment and create new commercial revenue for our company.”

With this news, Flora also launched its online store, where authorized customers may place orders for high-THC and high-CBD dry flowers as well as related items.

Merchan elaborated: “We are very proud of the progress we’ve made at our cultivation and extraction facility in such a short amount of time. We now have the capability to cultivate, harvest, and extract at a single facility and deploy that extract into our owned products or sell on the wholesale market around the world. When you think about the compounding value of owning our own supply chain, this becomes the cornerstone of that formula.”

“We are also proud to help increase access to safe, legal CBD and THC to consumers all over the globe,” Merchan continued. “We look forward to working closely with our partners in Europe and North America to bring high-quality Colombian cannabis products and raw materials to market.”

Alongside these new markets, Flora Growth announced that its Florida-based subsidiary, Just Brands LLC, acquired nearly all the assets related to the brand No Cap Hemp Co. At closure, the company did not pay any compensation for the No Cap assets. Instead, Flora will pay to the sellers 10% of the gross revenue received from the sale of No Cap products up to a maximum of $2 million USD.

“This transaction will allow Flora to immediately benefit from a profitable, cash flow positive and growing business,” said Merchan. “This strategic acquisition demonstrates our disciplined capital allocation approach that is consistent with both short-term needs and long-term vision as a leading global cannabis company. We look forward to increasing our product offering through this transaction while broadening our sales team in the process.”

The No Cap purchase would hasten the addition of premium flowers, pre-rolls, and smokeable to Flora’s expanding product lineup as well as Just Brands’. The No Cap brand will be supplied via Flora’s approximately 14,000 points of sale, and Just Brands would further develop their flower and smokeable portfolio.

The No Cap purchased assets, together with the “No Cap” and “Moonblunt” trademarks, are anticipated to add about 75 SKUs to Flora’s product line. Meanwhile, Flora Labs’ production capacity should be complemented by No Cap’s gas infusion technology.

“No Cap’s unique product offering coupled with JustCBD’s robust distribution positions Flora to be the leader in the alternative cannabinoid segment,” Merchan assured. Flora had completed the acquisition of JustCBD in February, which provided the company with a portfolio of 300 products, a direct-to-consumer business with 300,000 customers, and a network of 14,000 stores in the world.

These recent acquisitions have helped Flora Growth in securing the Best M&A Deal award at Benzinga’s 2022 Cannabis Capital Conference in Chicago, on September 13. According to Merchan, this prize “recognizes our strategic M&A objectives including acquiring products, expertise, expanding distribution, and customers.”

Recent financial figures for the first quarter of 2022 from Flora Growth showed a rise in sales to $15 million USD, up 604% from the first quarter of 2021 and 117% from the second quarter of 2021. As for the CBD market worldwide, the industry is anticipated to grow from $4.9 billion USD in 2021 to $47 billion USD by 2028.

Luis Merchan, the CEO of Flora Growth.

Photos courtesy Flora Growth