By M. Marin
READ THE FULL FLGC RESEARCH REPORT
Building a multifaceted integrated cannabis company…
Flora Growth Corp. (NASDAQ:FLGC) is focused on cultivating, processing and supplying medicinal-grade cannabis and related products globally and is pursuing an ambitious growth strategy, building an ecosystem to support multiple consumer categories of cannabis, plant-based wellness merchandise and lifestyle brands.
… and benefiting from cost advantages…
Flora benefits from favorable cultivation conditions in Colombia that help lower production costs. Management estimates that it has a significant cost advantage over competitors located in other markets and even compared to Colombian peers, as Flora believes it is the only public company with GACP approval for all-outdoor cultivation of both CBD and THC.
… and a favorable regulatory environment…
Flora's growth strategy also has a favorable regulatory tailwind in Colombia. The company believes that 2021 was transformational as it concluded certain supplier, vendor and distribution agreements, strengthened the balance sheet and executed on its complementary M&A strategy that is expected to broaden the company's product portfolio and distribution and accelerate revenue growth.
… as well as strategic M&A
The acquisition of Vessel Brand, Inc. (VBI), for example, helped Flora establish a foothold in the U.S. cannabis accessories business and enhance its e-commerce capabilities. VBI markets cannabis and wellness consumer products and the acquisition provided access to a range of products and distribution points, as well as executive leadership.
Reflecting the foundation established in 2021, Flora expects revenue growth to accelerate beginning in 2022. The company's commercial and wholesale portfolio of products includes a range of THC and CBD both dried flower and formulations designed to meet international and domestic standards as well as evolving legal market opportunities.
Cross-promoting its growing product portfolio to enhance and accelerate growth is a priority. With an expanded executive team in place, Flora expects to launch an ambitious marketing effort to accomplish this. For example, given JustCBD's presence in Europe, Vessel now also has a pathway for distribution in the U.K. and EU.
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