MIAMI & TORONTO–(BUSINESS WIRE)–Flora Growth Corp. (NASDAQ: FLGC) (“Flora” or the “Company”), a leading all-outdoor cultivator and manufacturer of global cannabis products and brands, announces that its Vessel brand has signed a distribution agreement with Florida -based Speedy Distribution (“Speedy”), one of JustCBD’s core partners.
This agreement represents Vessel’s first entry into traditional smoke shop channels, a category that offers promising growth for the brand over the short term. The initial product offering will include some of the highest demand SKUs from its vape and dry herb categories. Looking forward, Vessel will continue to innovate and design new products and accessories specifically for this newly formed channel partnership.
“We are excited to bring the Vessel product offering to one of our core distribution partners in Speedy,” commented Hussein Rakine, JustCBD CEO. “The Vessel team designs excellent customer experiences, and whether through e-commerce or traditional wholesale, the products are always well received by customers. We see this agreement as the first of many where we leverage JustCBD’s existing distribution network and Flora’s diverse product portfolio to amplify growth for our combined Company.”
Over the last 15 years, Speedy has grown into one of the leading smokeshop distributors in the US, servicing over 1,000 stores with thousands of smoking products, accessories and novelties. With over 20,000 sq. feet of warehouse space, they have one of the largest cash-and-carry locations in South Florida that is stocked with the newest smoking products and accessories.
About the JustCBD Acquisition
- Expected to Accelerate Top and Bottom-line Growth: Flora expects JustCBD’s financial performance to immediately contribute to Flora’s 2022 revenues and earnings.
- Anticipated Creation of Major US Distribution Synergies: Flora intends to leverage synergies between its existing brand portfolio, including Vessel, Tonino Lamborghini, and Mind Naturals, with JustCBD’s extensive US distribution network to further amplify revenue growth for these brands.
- Expected to Provide Global Expansion Opportunities: To date, the majority of JustCBD’s sales have been derived from the US wellness market, where it has developed into a prominent and highly sought-after brand. With the support of Flora’s strong balance sheet, we believe JustCBD is now positioned to expand into international markets where CBD products are permissible, including Germany, Mexico, and Colombia.
- Increases Customer Database: JustCBD’s database of over 300,000 customers increases Flora’s existing customer base to over 500,000 customers.
- Adds Exceptional Human Capital: Members of the JustCBD operations team are expected to join the Flora team as integral leaders of Flora’s US expansion strategy. This includes JustCBD’s CEO Hussein Rakine, who was named to Forbes’ 2022 list of 30 Under 30 list for retail and ecommerce.
- Potential for Long-term Supply Chain Efficiencies: Flora will explore integrating its supply chain by utilizing the CBD oils and isolates from its Cosechemos cultivation with JustCBD products to leverage its owned, cost-advantaged cultivation to drive lower cost of goods.
You can read more about the JustCBD acquisition on Flora Growth’s website.
About the Flora / JustCBD Webinar
Flora will hold a webinar with JustCBD CEO Hussein Rakine, Flora’s CEO Luis Merchan and Chief Strategy Officer James Choe today, March 2na at 1 pm ET where they will outline the synergies of the acquisition. Register here.
About Flora Growth Corp.
Flora is building a connected, design-led collective of plant-based wellness and lifestyle brands that is designed to deliver one of the most compelling customer experiences in the world, one community at a time. As the operator of one of the largest outdoor cannabis cultivation facilities, Flora leverages natural, cost-effective cultivation practices to supply cannabis derivatives to its diverse business divisions of cosmetics, hemp textiles, and food and beverage. Visit www.floragrowth.com or follow @floragrowthcorp on social [media] for more information.
Cautionary Statement Concerning Forward-Looking Statements
This document contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: the size of markets for cannabis and cannabis products; the expected and anticipated benefits with respect to Flora’s acquisition of JustCBD, the collaboration with third parties; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes, ” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this document and other statements made from time to time by us or our representatives may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of uncertainties and assumptions, or the forward-looking events discussed in this document and other statements made from time to time by us or our representatives not occurring, except as may be required by applicable law.