- Flora also recently announced it had received its 2021 commercial export quota allocation of 7,900 kilograms to cultivate, process, and distribute high-THC cannabis
- Flora Growth also announced it has entered into an agreement with Applied DNA Sciences, Inc. and TruTrace Technologies, Inc.
- FLGC will deploy the two companies’ integrated technology as part of its global cannabis product validation and authentication platform
- The integrated technology will tag, test, and track Flora’s cannabis and cannabis derivative products during transit across an international supply chain, providing enhanced transparency, traceability, and trust
As an internationally focused company, Flora Growth (NASDAQ: FLGC) has always strived to build a global cannabis consumer packaged goods (“CPG”) portfolio by leveraging natural, low-cost cultivation practices; developing products that positively impact the health and wellness of people; and growing a global footprint through partnerships, investments, and acquisitions. In line with this commitment, Flora recently entered into distribution agreements with Kiricann (https://ibn.fm/Q8K4e) and Evergreen Pharmacare (https://ibn.fm/whN6l) to supply dried flower and derivatives to Africa and the EU, as well as Australia, adding to its existing strategic global growth and distribution initiatives.
Coming shortly after the Colombian government announced reformed, more accessible cannabis legislation, Flora recently announced it had received its 2021 export quota from the Columbian Technical Quotas Group (“TQG”) to cultivate, process, and distribute up to 7,900 kilograms of high-THC cannabis dried flower (https://ibn.fm/f1Ftj). The company believes the allocated export quota will be sufficient to meet the international demand for its product throughout the remainder of the year and the beginning of 2022.
This export quota allocation, coupled with the distribution agreements with Kiricann and Evergreen and the €2 million investment in Hoshi International, closed August 24 (https://ibn.fm/hbCNN), is a significant milestone for the company. According to Warnock, it represents a major opportunity to export Flora’s high-margin, high-THC goods to legal markets around the world.
Nonetheless, Flora is not just prioritizing planting the new high-THC cultivars but is also actively harvesting its high-CBD crops, with the harvest expected to create a robust pipeline of cannabis derivatives for the company to use across its premium brands and products, as well as for export.
As part of the preparations towards the expected export of cannabis and cannabis products via the two distributors, Flora announced September 8 that it has partnered with Applied DNA Sciences, Inc. (NASDAQ: APDN) and TruTrace Technologies, Inc. (OTC: TTTSF) with the aim of establishing a new global standard for cannabis distribution practices (https://ibn.fm/bieU8).
Under the terms of the Master Services Agreement (“MSA”), Flora will deploy an integrated technology that brings together Applied DNA’s CertainT(R) and TruTrace’s StrainSecure(TM) platforms as part of its global cannabis product validation and authentication platform.
The integrated technology, which is the result of an agreement between APDN and TruTrace signed earlier this year (https://ibn.fm/2p1XY), will allow Flora’s cannabis and cannabis derivative products to be tagged with a unique molecular identifier and tested for the identifier’s presence during travels across an international supply chain using CertainT. The products will then be tracked using StrainSecure by uploading the data points collected through tagging and testing to a blockchain-based cloud database (https://ibn.fm/EwBld).
“In today’s globalized market, supply chain provenance is becoming an increasingly important component for every major CPG company. This is particularly true for the cannabis industry, where concerns over the sale and distribution of products from the illicit market persist for businesses,” said Flora Growth’s Chief Revenue Officer, Jason Warnock. “Flora anticipates that the added assurance, efficiency, and transparency brought by these technologies will optimize our value proposition to customers, differentiate us from peers, and increase our sales opportunities.”
According to Applied DNA and TruTrace, the integrated technology will provide enhanced transparency, traceability, and trust across Flora’s international supply chain and will be instrumental in today’s cannabis industry, currently seeking legitimacy as it gains global acceptance.
The integrated technology, whose build-out is well underway, will ensure that the products supplied from Colombia and delivered to global customers are derived directly from Flora’s operations. The implementation will, therefore, significantly reduce any concerns regarding illicit market products or counterfeits. Flora’s management anticipates that the integration will be ready in time for use by global customers receiving products, such as Kiricann and Evergreen.
For more information, visit the company’s website at www.FloraGrowth.ca.
NOTE TO INVESTORS: The latest news and updates relating to FLGC are available in the company’s newsroom at https://ibn.fm/FLGC