Cannabis company Flora Growth Corp. (NASDAQ:FLGC) announced Tuesday that its wholly-owned subsidiary, Cosechemos, has produced the first batch of crude oil through its newly constructed extraction facility. Cosechemos has also initiated the process to become EU-GMP certified.
The completed facility will serve as the company’s primary processing hub, facilitating the drying and processing of Flora’s all-outdoor cultivated flower into finished, packaged dry flower and extracted material for domestic production and export to wholesale cannabis markets.
Why It Matters
“Global cannabis markets are growing at an incredible rate, and Flora is ready to meet that demand for cannabis-derivatives with the completion of our new EU-GMP compliant extraction facility in Colombia,” Luis Merchan, president and CEO of Flora Growth stated. “This is another major step for Flora Growth, as we are now in a position to seek EU-GMP certification, with the ultimate goal of disrupting the global cannabis derivatives market with our low-cost product. Further, the completion of the facility immediately allows us to supply extracts and derivatives to our CPG portfolio, including Flora Beauty and Kasa brands, unlocking additional cost efficiencies.”
The team successfully extracted the first batch of high-THC crude oil, where the product was submitted to the Colombian government to obtain Flora’s 2022 quota for THC derivatives. At this time, the team is continuing commercial CBD extraction.
Upon receipt of EU-GMP certification, and when paired with Flora Growth’s recent Good Agricultural and Collection Practices (GACP) certification, Flora will be positioned to target international medical cannabis markets. In addition, the company intends to leverage its cost advantage to penetrate international medical cannabis markets with its low-cost dried flower and derivatives.
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Flora Growth shares traded 0.59% higher at $1.71 per share during Tuesday pre-market session.
Photo: Courtesy of CRYSTALWEED cannabis on Unsplash