Business

Flora Growth Cements Foothold in Germany and the European Union

Acquisition of Franchise Global Health to connect Flora Growth’s Colombian-grown cannabis with a German distribution base.

Published

2 years ago

January 2, 2023

Brad Cheng

Flora Growth executives visited the Nasdaq MarketSite in New York on Jul 23, 2021 to celebrate their IPO launch. Flora was the first known all-outdoor grower ever listed on the NASDAQ and has the largest licensed cultivation footprint in Colombia. PHOTO NASDAQ

Toronto’s Flora Growth (NASDAQ: FLGC), a leading all-outdoor cultivator, manufacturer and distributor of global cannabis products and brands, announced this week completing acquisition of Franchise Global Health (TSXV: FGH) (“FGH”), a multi-national operator in the medical cannabis and pharmaceutical industry, with principal operations in Germany.

The acquisition is expected to connect Flora’s Colombian-grown cannabis directly with German-based pharmaceutical and medical cannabis distribution. The deal establishes a foothold in Germany allowing for medical cannabis sales across 1,200+ pharmacies and the distribution of pharmaceutical products across 28 countries. The deal also gives Flora an advantage should Germany legalize adult-use, recreational cannabis.

“We view this acquisition as transformational as Flora pursues its strategic growth plan to lead the global market for cannabis and its derivatives,” said Luis Merchan, Chairman and CEO of Flora. “Flora has now secured a crucial footprint in an established international cannabis market, providing a unique opportunity for operational synergies and diversified growth.”

The launch of a German adult-use market estimated to be worth over $1 billion by 2026. The company believes Flora and FGH’s combined wealth of knowledge and intellectual property position the Flora well for the potential incoming recreational market.

The medical cannabis market in Germany is valued at roughly $122 million. An estimated 150,000 German patients benefit from medical cannabis and 90% of Germany’s population of 83 million people are covered by statutory health insurance.

For more information about Flora Growth, visit www.floragrowth.com

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