Flora Growth Corp. FLGC announced on Tuesday that it has obtained its 2021 export quota from the Colombian Technical Quotas Group to grow up to 7,900 kilograms of high-THC cannabis dried flower for direct sale or processing into derivative products for export to international markets.

The news comes on the heels of Flora Labs receiving authorization by the Colombian National Food and Drug Surveillance Institute to be Good Manufacturing Practices-certified to manufacture cosmetic products.

The new 2021 export quota should be enough to meet the international demand for Flora’s product for the rest of the year and the onset of 2022, the company’s management noted.

“This is a significant milestone for the Company and represents a major opportunity to export our high-margin, high-THC goods to legal markets around the world,” Jason Warnock, chief revenue officer of Flora stated. “It’s also important to note that this quota is for THC cannabis products as Flora does not require any quota for non-psychoactive cannabis (high-CBD) flower or derivatives.”

The Miami and Toronto-based company previously announced agreements with Kiricann and Evergreen Pharmacare to supply dried flower and derivatives for distribution in Africa and the EU, as well as to Australia, respectively. Additionally, Flora announced that it intends to make a strategic investment in Hoshi International, which will establish Flora as a preferred supplier for Hoshi’s two EU processing facilities, located in Malta and Portugal.

“We have been eagerly anticipating and preparing for this announcement by cloning thousands of plants which we currently have in propagation waiting to be transferred into our fields,” said Javier Franco, Flora's VP of agriculture. “While awaiting this quota, we were focused on optimizing our cultivation strategy and demonstrating our industry-leading production costs of just US$0.06 per gram, while continuing to build out our facilities and applying for third party certifications.”

Price Action

Flora Growth’s shares were trading 4.56% lower at $8.38 per share at the time of this writing, mid-morning on Tuesday.

Photo: Courtesy of Richard T on Unsplash