Financial News
Cannabis companies are thriving as a result of Europe’s call for medical marijuana
A South African manufacturer has sold all of its output for the upcoming year in advance because to the surge in demand for medicinal cannabis from Europe to Australia. According to Bassim Haidar, CEO of SafriCanna’s largest investor, Optasia, the majority of the production will be sold to Germany and Australia. The business began building its facilities in the Pretoria capital in 2019 and sent its first flower shipment in June. It made a deal with German company DEMECAN that same month to provide medical cannabis flowers. The region’s market is predicted to grow due to favourable regulations and rising customer desire. Increased cannabis and CBD products will drive growth for cannabis companies like Flora Growth Corp. (NASDAQ:FLGC), Aurora Cannabis Inc. (TSX:ACB) (NASDAQ:ACB), Medical Marijuana, Inc. (OTC:MJNA), Sundial Growers Inc. (NASDAQ:SNDL), and Tilray Brands, Inc (TSX:TLRY) (NASDAQ:TLRY).
Flora Growth Corp. (NASDAQ:FLGC) operates one of the largest outdoor cannabis cultivation facilities. It relies on natural and cost-effective cultivation practices to supply cannabis derivatives to its various cosmetics, hemp, and food and beverages business divisions.
On September 26, Flora Growth announced that it has completed its first exports of high-CBD dried cannabis flower grown in Colombia to Switzerland and the Czech Republic and CBD isolate to the United States.
“As our global distribution network continues to evolve, adding these three industry-leading countries to our footprint is a major milestone for Flora,” said Luis Merchan, Chairman and CEO of Flora Growth. “Our cultivation operation in Colombia, which provides high-quality, high-margin flower and derivatives, has experienced increasing demand. These exports are a testament to our team’s ability to execute in a very complex global regulatory environment and create new commercial revenue for our Company.”
Flora‘s commercial website has also been launched, where qualified purchasers may learn about Flora‘s cultivation and grow procedures and place orders for high-THC and high-CBD dry flower and derivative goods.
“We are proud to help increase access to safe, legal CBD and THC to consumers all over the globe,” Merchan added. “We look forward to working closely with our partners in Europe and North America to bring high-quality Colombian cannabis products and raw materials to market.”
On September 13, Flora announced it was named Best M&A Deal at Benzinga’s 2022 Cannabis Capital Conference in Chicago.
Flora completed its purchase of JustCBD in February 2022, providing the Company with an established CPG brand with a portfolio of over 300 products, a direct-to-consumer company with over 300,000 customers, and a network of over 14,000 retailers across the United States and worldwide. In fiscal year 2020, JustCBD achieved audited revenue of US$28 million and EBITDA of US$7 million across numerous product categories.
Flora‘s infrastructure in the United States has been strengthened as a result of the acquisition, with significant distribution across different mainstream US channels.
For more information about Flora Growth Corp. (NASDAQ:FLGC), click here.
Cannabis Companies Enter in Distribution Agreements
On September 20, Aurora Cannabis Inc. (TSX:ACB) (NASDAQ:ACB) announced its fiscal 2022 fourth quarter and full-year results. Aurora remained the #1 Canadian LP in high-margin global medical cannabis revenues. International medical cannabis net revenue Increased 35.4% from Q4 2021 and 70.3% from fiscal 2021. The Company reiterated the profitability run rate of Adjusted EBITDA and reaffirmed $150 to $170 million in annualized cost savings by December 31, 2022. Aurora also strengthened its balance sheet through an accretive debt reduction of $155.3 million in Q4 2022. The Company completed the profitable acquisition of Thrive Cannabis and majority investment in Bevo Farms.
To increase its capabilities in the European market, Medical Marijuana, Inc. (OTC:MJNA) disclosed on September 8 that its subsidiary, Kannaway, had struck a distribution agreement with longtime associate Complete Hemp Technologies (CHT). The arrangement expands the services CHT already offers to Kannaway throughout Europe to include warehousing and daily operations, resulting in cost reductions and increased gross margins in one of the Company’s most important foreign markets. Medical Marijuana has been collaborating with CHT for years to facilitate expansion throughout Europe, taking advantage of their solid connections with authorities and skills for unmatched cannabis-based products in the market. Plus, CHT will now offer distribution services, dealing with the need to transfer goods once they have been manufactured and paying for additional storage space and personnel costs.
Sundial Growers Inc. (NASDAQ:SNDL) and IM Cannabis Corp. announced on September 15 that SNDL has completed its inaugural international export from Canada to Israel as part of its overall commitment with IMC. SNDL and IMC have agreed to ship 1,000 kg of high-quality dried flower products to Israel for processing and distribution in the medicinal cannabis market. The expansion is a big step forward for SNDL as it joins the worldwide market. The successful export represents another significant step forward for IMC in streamlining its extensive global operations, which include Israel, Canada, and Germany. SNDL sees the overseas market as a new avenue for increasing revenue from its cannabis business. The Company believes that as more global markets refine their legislation, access to high-quality cannabis products manufactured by trusted Canadian producers will become easier.
On September 22, Tilray Brands, Inc (TSX:TLRY) (NASDAQ:TLRY) announced that FL Group S.R.L., an Italian division of Tilray Medical, has received approval from the Italian Ministry of Health to import and distribute Tilray‘s medical cannabis oral solution THC25. Tilray Medical has an established national pharmaceutical distribution network with FL Group to distribute Tilray’s THC25 medical cannabis oral solution in Italy, where medical cannabis licence is limited. Patients in Italy can acquire their doctor’s prescriptions for Tilray and other medical cannabis products. Tilray Medical, with a diverse array of THC and CBD medicines, is a major distributor of EU-GMP-certified medical cannabis products in 22 countries. Tilray‘s medical cannabis products have been carefully chosen to ensure that patients receive both the highest product quality and consistency in the supply of their medicinal cannabis products.
Flora Growth recently published H1 2022 financial results, showing a revenue gain of 604% over H1 2021 and 117% over H2 2021, powered by the Company’s wide range of brands.
Featured Image MegaPixl @ Pattiachann
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