How is Colombia already selling and shipping thousands of pounds of weed to the US and Europe?

Do you think cannabis prices have bottomed in the US and Canada? Think again, as low-cost carriers like Colombia have started shipping cannabis and cannabis products around the world at much lower costs than the US and Canada can compete with current tax structures.

Flora (NASDAQ: FLGC) is an international cannabis company that sources all-natural, low-cost production of cannabis derivatives. Flora is building a connected, design-driven collective of plant-based wellness and lifestyle products to deliver the most compelling consumer experiences, one community at a time. To supply cannabis derivatives to its brand house, commercial and life science divisions, Flora operates one of the largest outdoor cannabis cultivation facilities. This is done through the use of natural and economical cultivation techniques.

On September 26th, Flora Growth made the first shipments of CBD isolate from Colombia to the United States and highly concentrated dried cannabis flower to the Czech Republic and Switzerland. According to Luis Merchan, Flora Growth Chairman and CEO, the company’s global distribution network continues to evolve, particularly with the addition of these three market-leading nations.

He added that there has been growing demand for the company’s Colombian grow operation, which supplies premium, high-margin flowers and by-products. These exports are a testament to her team’s ability to operate effectively in a highly complex international regulatory environment and generate additional revenue for the company.

In the fourth quarter of 2022, Flora successfully exported around 1,000 kg of dried cannabis and its derivatives to Europe and the United States, following the approval of Resolution 539. Resolution 539 allowed licensed cannabis growers with export restrictions to export dried cannabis flower. These initiatives are part of the full commercialization of Flora Lab One and Cosechemos’ farm facility in Bucaramanga, Colombia.

The company also increased the cap on the manufacture of psychoactive derivatives for local use in the Colombian medicine market. The company also changed its originally stated export quota of 43,000 kg to include numerous strains of THC flower, specifically four more high-THC genotypes.

Flora’s Secret; Passing of Resolution 539 and multiple acquisitions

According to Luis Merchan, Floral is the largest commercial cannabis grower in Colombia, which means its ability to activate and equitably distribute its farm is nearly unrivaled. As a result of the takeover of Franchise Global Health, which was completed just last week, the company now has direct sales and distribution channels in Germany and throughout Europe.

Since passing Resolution 539 last year, Flora has focused on promoting the export and marketing of dried cannabis flower to Europe. The acquisition of Franchise Global Health and the bringing together of the German and European teams not only accelerates Flora’s immediate opportunity for medical products in Germany, but also positions the company well for a possible new leisure market.

A commercial website for Flora has also been developed, allowing qualified customers to purchase high-CBD, high-THC dried flowers and by-products and learn more about Flora’s cultivation and cultivation practices. In the words of Merchan, Flora is excited to help improve consumer access to legal, safe THC and CBD worldwide. The Company seeks to work with its North American and European partners to promote high quality cannabis products and raw materials from Colombia.

Following the completion of Flora’s acquisition of JustCBD in February 2022, the Company now has a defined CPG brand with an investment of more than 300 products, a direct-to-consumer business of more than 300,000 customers and a network of more than 14,000 retailers both domestically and internationally . In fiscal 2020, JustCBD had $28 million in audited revenue and $7 million in EBITDA across product categories.

The acquisition has enhanced Flora’s infrastructure in the United States through extensive distribution through various mainstream channels in the United States

More cannabis companies are entering into distribution agreements

Aurora Cannabis Inc. released its fourth quarter 2022 and full year 2022 financial results on September 20. In terms of high-margin medical cannabis sales worldwide, Aurora continued to be the top Canadian LP International medical cannabis gross sales increased 70.3% and 35.4% from fiscal 2021 to Q4 2021. The Company confirmed that Adjusted EBITDA Continue to be profitable and achieve annual cost savings of $150 million to $170 million through December 31, 2022. Aurora’s balance sheet was also boosted by a $155.3 million debt reduction in the fourth quarter of 2022. The company successfully acquired Thrive Cannabis and invested the majority of its funds in Bevo Farms.

Meanwhile, Medical Marijuana, Inc. announced that its subsidiary Kannaway entered into a distribution agreement with longtime partner Complete Hemp Technologies on Sept. 8 to expand its capabilities in the European (CHT) market. With the agreement, CHT will provide Kannaway with day-to-day operations and warehousing, as well as the services it already provides for Kannaway across Europe. This will reduce costs and increase profitability in one of the company’s most important international markets.

Medical Marijuana has been working with CHT for many years to enable growth across Europe. This partnership leverages CHT’s strong contacts with government officials and expertise in creating the best cannabis-based products on the market. In addition, CHT now handles distribution services, taking care of the need to transfer items after production and spending money on additional storage space and labor costs.

On September 15, IM Cannabis Corp. and Sundial Growers Inc. that SNDL completed its first overseas export to Israel as part of its overall agreement with IMC. SNDL and IMC have agreed to ship 1,000 kg of high quality dried cannabis flower products to Israel for distribution and processing in the medical marijuana market

The growth is a significant milestone for SNDL as it enters the global market. With the successful export, IMC has taken a major step in streamlining its large international operations, which include Germany, Canada and Israel. The international market presents a new opportunity for SNDL to boost sales of cannabis-related products. The Company believes that as more international markets develop their regulatory frameworks, access to premium cannabis products produced by trusted Canadian breeders will become easier.

On September 22, Tilray Brands, Inc. announced that FL Group SRL, a subsidiary of Tilray Medical in Italy, has received permission from the Italian Ministry of Health to import and offer Tilray’s THC25 oral medicinal cannabis solution. FL Group has established a nationwide pharmaceutical distribution network to distribute Tilray Medical’s THC25 oral solution in Italy. In this country, the availability of medicinal cannabis is severely restricted.

Patients in Italy can obtain Tilray and other medicinal cannabis products with a prescription from their doctor. Tilray Medical is a major supplier of medicinal cannabis products in 22 countries with a wide range of EU-GMP certified THC and CBD medicines. To ensure patients receive the best possible outcome and a consistent supply of their medicinal cannabis products, Tilray has carefully selected its line of medicinal cannabis products.

Conclusion

As the cannabis industry continues to evolve, these companies are expected to grow and expand even more. The future for the cannabis industry is bright and these companies have positioned themselves as pioneers in the international market. In fact, only good things will happen to them as cannabis legalization spreads further.

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