Flora Growth (NASDAQ: FLGC), a consumer-packaged goods leader serving all 50 states with 15,000-plus points of distribution around the world and a pharmaceutical distributor in 28 countries, is reporting on the agreement for the C$0.8 million sale of its Colombian-related subsidiaries and assets. The agreement, which is dated July 5, 2023, is with a private company and is related to Flora’s operations in Colombia, including its interest in a 361-acre Cosechemos farm located in Giron, Colombia, and related processing facilities and inventory as well as all other assets relating to Flora Lab 2 and Flora Lab 4 and Flora’s Colombian food and beverage and consumer products business. According to the update, the company anticipates the sale to close by July 31, 2023. In addition, Flora noted that following the completion of the sale, it plans to maintain a presence in Latin America through its Just Brands’ distribution relationships.
The sale divestiture of FLGC’s Colombian assets is part of the company’s strategic plan to concentrate on its core business divisions: a prominent lifestyle brand in the United States and becoming a player in international pharmaceutical distribution focused on therapeutics, starting with medical cannabis. In addition, the company noted that its 2023 revenue guidance was based in part on its operations in Colombia, so it is in the process of reevaluating and reissuing those projections. “We have made several strategic changes to cut costs and streamline operations,” said Flora Growth CFO Dany Vaiman in the press release. “These changes are projected to deliver annual cost reductions amounting to $6.1 million in cumulative annual savings when taken together with the $3.4 million in savings from the divestiture of the Colombian assets.”
To view the full press release, visit https://ibn.fm/LGuNn
About Flora Growth Corp.
Flora Growth is a consumer-packaged goods leader serving all 50 states with 15,000-plus points of distribution around the world and is a pharmaceutical distributor in 28 countries. In the United States, Flora’s lifestyle business has established a robust presence across all 50 states, providing the company with a solid foundation. Furthermore, the company possesses substantial potential for international expansion. Based in Germany, Flora Growth has successfully developed a strong distribution network delivering lifestyle and wellness products to 28 countries. For more information about the company, please visit www.FloraGrowth.com.
NOTE TO INVESTORS: The latest news and updates relating to FLGC are available in the company’s newsroom at https://ibn.fm/FLGC
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