Cannabis operator Flora Growth Corp. on Wednesday announced an agreement with London-based Blossom Genetics to supply medical marijuana to the German market.
Financial details of the partnership were not disclosed.
Under the deal, according to a news release, the two companies plan to introduce two flower strains – Chemmy Jones and Northern Lights – in Germany, where a landmark recreational cannabis law took effect April 1.
The legislation that ushered in a limited recreational market in Germany essentially decriminalized cannabis, allowed home grows and laid the framework to establish “cultivation social clubs” – nonprofit organizations where members can acquire marijuana for adult use.
“This supply agreement with Blossom Genetics is a pivotal step in our efforts to expand Flora’s global presence and provide top-tier cannabis products to Germany,” Flora Growth Chair and CEO Clifford Starke said in a statement.
“The demand for medical cannabis has surged since legalization, and we are confident that the strains we will bring to the market will resonate with patients and healthcare providers alike.”
Flora’s wholly owned subsidiaries have been operational in Germany since 2017, obtaining the country’s first medical cannabis license and conducting its inaugural MMJ sale.
Flora, which has European Union-Good Manufacturing Practice (EU-GMP) certification, said it distributes cannabis products to more than 1,200 pharmacies across Germany as it continues to scale operations across Europe.
Product deliveries are planned to begin in the fourth quarter, according to Flora Growth, which is headquartered in Toronto and has an office in Fort Lauderdale, Florida.
News of the deal failed to sway investors Wednesday, as Flora Growth’s shares on the Nasdaq (FLGC) dipped 4.1% to $1.10.
