We are going to pull up 2 charts here: the 1 day and 1 year chart..
And you can see why we are getting a little excited. Today was a solid day for this little beauty but based on the 1 year chart this stock could have a lot more in the tank! Just take a look below. They say a picture is worth 1,000 words… In this case it could be worth A LOT MORE!!!
Full Report Below
Emerging small-cap company Flora Growth Corp. (NASDAQ: FLGC)is capitalizing on the rapidly growing market for cannabis products and is on a mission to create the leading small-cap NASDAQ international cannabis company!
Flora Growth has been actively acquiring companies over the past few years in hopes of expanding its business both in the U.S. and globally.
CEO Clifford Starke is so confident about the future of Flora Growth that he has purchased over 1.3 MILLION shares of the company and is a major insider!
You know what they say about insiders… they may sell for many reasons, but they buy for one reason: They think the stock could go up.
The legal cannabis industry is still in its early stages and the market opportunities remain significant, especially if the plant may be headed towards federal legislation in the United States!
Now may be one of the most exciting times to have your eyes on the legal cannabis space as the U.S. may be in the beginning of a wave of favorable legislative reforms with both major party presidential candidates expressing support!
In May 2024, the U.S. DEA announced proposed rules to reschedule cannabis from Schedule I to Schedule III.
A 60-day public comment period on proposed rescheduling has terminated and the DEA is reviewing public input as it considers its rulemaking.
After a review of the record and any DEA recommendations, the U.S. Department of Justice, will make the ultimate rescheduling determination, which will likely take more several months during which marijuana will remain a Schedule I controlled substance.
Republican Presidential-nominee Donald Trump has signaled that he will vote in favor of legalizing marijuana for personal use in his home state of Florida, ahead of a ballot on the issue in November.
Political progress has remained in limbo over U.S. recreational marijuana. This has significantly led to a decrease in the market cap of U.S. multi-state operators and Canadian licensed producers.
With the U.S. election in gear and a U.S. ban of recreational marijuana looking to be on its last legs, this could potentially usher in significant rebound activity in the arena!
The Opportunity in the U.S.
As of August 2024, cannabis is now legal in 38 U.S. states for medical use and fully legal in 24 U.S. states. As more U.S. states and countries legalize the plant for both recreational and medicinal uses, investors are taking greater interest in adding companies in the growing space to their portfolios.
Federal prohibition has been a thorn in the side of cannabis companies, as federal law makes it significantly more expensive to run cannabis related businesses and forces these companies to be subject to much higher tax rates. ’ If federal rescheduling of cannabis from Schedule I to Schedule III cannabis occurs, operators will have their tax rates reset to normal corporate tax rates adding cash to the bottom line. Rescheduling to Schedule III will still require FDA approval for any product containing cannabis to be sold but should ease research into therapeutic uses for cannabis. It is not yet clear that rescheduling will occur, but political and agency signals seem to be supportive of rescheduling. Until then cannabis remains a Schedule I substance.
Many people hope that rescheduling facilitates the sale of cannabis products that help them reduce stress, improve sleep, or manage pain.
Support for marijuana legalization has increased dramatically over the last two decades. In addition to asking specifically about medical and recreational use of the drug, both the Center and Gallup have asked Americans about legalizing marijuana use in a general way. Gallup asked this question most recently, in 2023. That year, 70% of adults expressed support for legalization, more than double the share who said they favored it in 2000.
Additional 2024 Marijuana Industry Key Statistics & Data Insights in the U.S.:
Half of Americans have tried cannabis.
79% of Americans live in a county with at least one dispensary.
The US cannabis industry is expected to reach almost $40 billion in 2024.
Cannabis will add $115.2 billion to the economy in 2024.
Adult-use cannabis is now legal in 24 states.
Support for legalizing cannabis hit a record 70%.
Cannabis earns higher tax revenue than alcohol in 9 states.
This further puts the spotlight on Flora Growth Corp.’s (NASDAQ: FLGC) whose mission is to create the LEADING small-cap international cannabis company where the benefits of cannabis are accessible to everyone!
Who is FLGC?
Florida-based Flora Growth Corp. (NASDAQ: FLGC) is a multi-national cannabis company that manufactures and distributes consumer packaged goods, medicinal cannabis and pharmaceutical products in all 50 states and 28 countries with 20,000+ points of distribution around the world.
The company believes the future of the cannabis industry lies in the ability to bring products and medications to communities around the globe.
As an international cannabis company, FLGC is dedicated to building premium brands that enhance well-being and promote a healthier lifestyle. Through the company’s cultivation expertise and innovative solutions, it delivers diverse, high-quality cannabis products to meet the evolving needs of a global market.
Built on the goal of delivering the best possible experience at every touch point, FLGC’s House of Brands is committed to excellence in product design and customer experience.
With significant revenue growth, the company is building an ecosystem that will support market-leading innovation within categories that matter most to consumers who are exploring plant-based consumer goods.
FLORA IN THE UNITED STATES
The Company stands at the forefront of the tremendous U.S market, leveraging the distribution and marketing experience of its leading consumer products brand – JustCBD.
JUSTCBD
JustCBD is an established CPG wellness brand with over 300 products and a seamless omni-channel approach that includes a direct-to-consumer business with over 300,000 customers and a network of over 14,000 distribution points across the United States and internationally. Flora acquired the brand in February of 2022.
JustCBD high quality CBD products are made from organically sourced USA-grown hemp. JustCBD carries a wide range of CBD items for sale, including everything from Gummies and oil to soothing creams and pet treats. It has more than 22,000 5-star reviews. Every CBD product is GMP certified, as well as third party laboratory tested to confirm buyers’ safety. For more information, visit www.justcbdstore.com.
This NASDAQ-traded small cap firm also has an established pipeline into the growing German market!
In fact, FLGC’s wholly owned subsidiaries have been active in Germany since 2017, obtained the FIRST medical cannabis license in the country and are also responsible for selling the first gram of medical cannabis in Germany.
With the largest population and the greatest purchasing power in Europe, Germany boasts Europe’s fastest growing cannabis market. With the following 2 phases of German legalization expected in the coming 12-18 months, Germany may become the largest federally legal adult use cannabis country!!
This bodes well for Flora Growth Corp. (NASDAQ: FLGC) who has acquired TruHC in an all-share deal valued at $6.4M. Majority control of TruHC was acquired in April of 2024.
Why is this a big deal?
Because there is a limited number of entities that can bring flower globally to supply the burgeoning German market.
“The acquisition of TruHC is expected to provide Flora with the runway it needs to maximize the benefits of Germany’s cannabis legislation. We intend to touch on many verticals in the medical and recreational cannabis realms in Germany. We anticipate becoming a leader and at the forefront of the industry, which has the potential to spread to the rest of Europe. Together, we are excited to assume pack leadership in a sector poised for explosive growth.”
Clifford Starke, Chief Executive Officer
TruHC
TruHC Pharma GmbH is a medical cannabis developer and distributor based in Hamburg, Germany that holds an EU-GDP certification as an importer, distributor and manufacturer of medical cannabis, and operates a production facility with a cutting-edge cannabis laboratory. The company also holds an EU-GMP license.
TruHC is expected to contribute the following to Flora:
A GDP wholesale license and an EU-GMP processing and production license for medical cannabis. It also owns and operates an EU-GMP certified laboratory ready for instant cannabis analysis as required for the new Cannabis Social Clubs.
The facility of TruHC is a flexible production space with EU-GMP certified modules that can be extended and customized for any production process from processing to extraction and enables a license extension for a future in country cultivation of medical cannabis and supply of cannabis dispensaries expected to be opened in 2025 during phase 3 of legalization. TruHC also holds a narcotic license with EU-GMP certified storage.
TruHC’s licenses allow TruHC to apply for new medical cannabis and cultivation licenses and become an official cannabis test lab for upcoming cannabis social clubs. It also enables international import of seeds and flowers for future distribution.
Germany made history this year by becoming the largest country in the EU to legalize recreational cannabis!
On April 1, 2024, Germany legalized recreational cannabis with explosive growth.
With approximately 230,000 medical cannabis patients prior to legalization, Germany continues to lead the way in European medical cannabis; only represents 0.28% of the population. Other countries, such as Australia, have up to Size of global cannabis market. Source: Prohibition Partners 2.3% of population (1.7 million patients) as medical cannabis patients.
More than 40 countries have legalized cannabis fully or partially for medical and/or adult use, with the total global market over $100 billion, which Germany representing 10% of the total global market.
Germany is the gateway to the European Union with the total market potential after legalization projected reach 100 million cannabis consumers, which is larger than the U.S.
The EU Market is Booming
The cannabis market in Europe is forecasted to achieve $33 billion by 2030 according to BDS Analytics with Germany leading the pack.
According to Prohibition Partners, the European medical cannabis market is expected to reach $3.5 billion by 2025.
Germany represents half of Europe’s medical cannabis market, with 2023 sales of $427 million to over 230,000 patients.
The medical market opportunity alone is expected to reach $3 billion in Germany and $45 billion within Europe over the longer-term.
The German legal recreational market has the potential to reach $4.2 billion according to Forbes.
Countries such as Germany have taken steps to facilitate access to cannabis. Germany represents half of Europe’s medical cannabis market, with 2023 sales of $427 million to over 230,000 patients, and ongoing research and clinical trials for several marijuana-based medications are underway.
As the EU’s market for cannabis products continues to grow, Flora Growth Corp. (NASDAQ: FLGC) aims to further capitalize with Phatebo GmbH!
“An early focus on Germany, highlighted by 2017 medical sales and a late 2022 acquisition of FGH, has positioned Flora to capitalize on legislative changes (home cultivation began April 1). Flora intends to leverage Phatebo relationships (part of FGH) to move medical cannabis from third parties into Germany.” – ROTH MKM
Phatebo GmbH is a leading distributor of export pharmaceuticals and medical cannabis products to the burgeoning European Union. Phatebo GmbH accelerates Flora’s expansion in Europe’s largest medical cannabis market.
Phatebo GmbH
Phatebo GmbH is a reliable partner in the healthcare industry. This dynamically developing pharmaceutical company is based in Hilzingen Germany, on the western shore of Lake Constance. Through its widespread and qualified supplier network, the company can offer its customers a wide range of branded Rx and OTC medicines, as well as medical devices, at attractive prices.
Flora is hopeful that a recent Frankfurt Stock Exchange listing will support FLGC’s trading liquidity and facilitate investment in Flora by European investors, .
As the global cannabis industry expands, it’s often the “pick and shovel” companies—those providing essential tools and services—that are most profitable, not necessarily the growers…
In the second quarter of 2024, Vessel maintained a gross profit margin of 53% on sales of $1.4 million and over 60 new wholesale customers were added to the Vessel network in the quarter, including several Multi-State Operators.
Vessel
Vessel’s mission is to be the world’s leading producer of consumer technology and accessories. The company’s products are built better, designed smarter and inspire optimism and happiness.
The company’s goal is to make every experience more expressive and personal, and to deliver the best performance in our line. The collection is an honest display of Vessel’s attention to detail and craftsmanship that’s second to none.
Today, cannabis vaping is one of the most preferred methods of cannabis consumption, courtesy largely because of its convenience and effectiveness.
Vessel is consistently rolling out innovative products and is quickly growing into a leading vaping company.
Flora Growth Corp. (NASDAQ: FLGC) has recently closed on its acquisition of Australian Vaporizers. This is a milestone in the company’s efforts to buy e-commerce engines and to use them to sell Vessel!
In August of 2024, FLGC closed on its acquisition of Australian Vaporizers. The acquisition has the potential to drive synergies with Flora’s existing portfolio of brands, including selling Vessel Brand products in Australia, which is Flora’s fastest growing segment.
Australian Vaporizers
Australian Vaporizers was founded in 2010 and has become one of the largest online retailers of vaporizers, hardware, and accessories in Australia. It is an online expert for aromatherapy products, specializing in dry herb vaporizers. It has been providing vapes, accessories and knowledge to enthusiasts and newcomers alike. Its website www.australianvaporizers.com.au is a popular designation in the country with a large database of satisfied customers. Australian Vaporizers sold over 92,000 units to over 30,000 active customers through business to business and direct to consumer channels.
One of the biggest disruptors to hit the beverage industry is THC-infused beverages and Flora Growth Corp. (NASDAQ: FLGC) is aiming to be at the forefront of this niche category!
This Marks FLGC’s Strategic Entrance into the Growing Cannabis-infused Beverage Market!
Highlights
Peak is a recognized market leader in cannabis-infused beverages and has a 40% market share in Canada.
Peak powers the biggest brands in the world and has 8 years of industry-defining experience.
The goal is to produce the next generation of cannabis infused beverages for the U.S. market.
According to Headset Data, the beverage market segment currently represents only 1% to 3% of the U.S. cannabis market. First-time daily cannabis use overtook alcohol, with roughly 17.7 million users compared to 14.7 million for alcohol.
The partnership is strategically positioned to establish cannabis beverages distribution in the U.S. by via CPG channels like wine and liquor stores.
The joint venture will leverage the strengths and resources of both Peak and Flora to capitalize on current commercial opportunities in the beverage market in the U.S., driving mutual growth and success. Peak contributes production know-how, while Flora brings a wealth of brand launching, sales and marketing expertise within the dynamic landscape of lifestyle brands in the U.S.
In late November of 2023, Total Wine and More, the largest independent alcoholic beverage retailer in the country, became the first major liquor store in the US to sell drinks containing THC. This proves further that THC-infused beverages are going mainstream!
The drinks are being marketed as an alternative to alcohol which explains why alcohol giants are climbing on board.
✓ Cannabis-infused beverages are a rapidly growing product category within the cannabis industry and currently represents 2.1% of the Canadian adult-use cannabis market, which equates to approximately CAD$134.4 million.
✓ According to Headset Data, beverages still represent only about 1% to 3% of the U.S. cannabis market with plenty of room for further growth. Beverages also benefit from the fact that people are seeking an alternative to alcohol alternative. Data Bridge Market Research estimates that the U.S. infused beverages market is expected to reach half a billion by 2030, at a CAGR of 14.7% during the forecast period.
✓ According to data analyzed by Carnegie Mellon University, daily or near-daily cannabis use is now more common than similar levels of alcohol consumption in the U.S. First-time daily cannabis use overtook alcohol, with roughly 17.7 million users compared to 14.7 million for alcohol.
✓ Beverages represent only a marginal component of the industry with tremendous potential for growth. According to Whitney Economics, the total demand for hemp-derived cannabinoids in the U.S. is valued at more than $28 billion with the total economic impact of the industry on the U.S. economy being more than $79 billion.
✓ Data Bridge Market Research estimates that the U.S. infused beverages market is expected to reach half a billion by 2030, with a CAGR of 14.7% during the forecast period.
✓ Gen Z is also leading the trend in THC-infused beverage adoption, according to another survey from Numerator. Cannabis drinks provide a way to consume THC and CBD in microdoses, similar to how consumers regularly drink alcohol or coffee.
The global cannabis beverages market size was USD 2.04 billion in 2023 and is projected to grow from USD 3.09 billion in 2024 to USD 117.05 billion by 2032, at a CAGR of 57.50% during 2024-2032. North America dominated the cannabis beverages market with a market share of 21.14% in 2023.
Why are major players moving towards the hemp beverage space? Because it’s legal in 50 states and these players see the opportunity to create real brands!
KEY INDUSTRY DEVELOPMENTS:
Curaleaf has expanded its cannabis product range, notably with the launch of Stir, a THC beverage mix under its Zero Proof brand.
April 2023 – BRĒZ, the First-of-its-Kind Cannabis and Lion’s Mane Infused Social Tonic officially launched direct-to-consumer across the U.S.
August 2023 – Tilray Brands, Inc., a global cannabis product company, acquired Truss Beverage Co.™ (Truss) from Molson Coors Canada. This acquisition would allow the company to expand its market presence.
March 2023 – Happi, a cannabis-infused seltzer manufacturer, launched its new functional cannabis infused seltzers – Happi Glow and Happi Nightcap. These products are developed with a unique blend of minor cannabinoids and non-psychedelic lion’s mane and reishi mushrooms.
October 2021 – BevCanna Enterprises Inc., an emerging innovative health & wellness beverages manufacturer, entered a partnership agreement with Averi Health Products, a beverage company, to develop and distribute white-label cannabis beverages.
August 2021 – Cann, a Californian THC beverage manufacturer announced the launch of Passion Peach Mate, first-of-its-kind caffeinated cannabis beverage. The manufacturer launched this product line to offer all-natural caffeine with micro dose of THC to the consumers as they seek alternatives to alcohol.
April 2021 – Molecule Holdings Inc., introduced Molecule Crafted™ cannabis-infused craft beverage range in Canada. These beverages are low in calories and available in various exotic and bold flavors.
Flora Growth Corp. sees the tremendous potential that the THC-infused beverage space encompasses and has additionally joined the U.S. Hemp Beverage Alliance!
Recent Product Launches and Partnerships
Vessel unveiled the second-generation Compass Rise – the next evolution in functionality and elegance. Built for the discerning connoisseur, Compass Rise embodies sophistication while delivering what consumers have come to expect from Vessel’s products. From its sleek design, cutting-edge technology, and the ability to stay upright, every aspect of Compass Rise reflects Vessel’s dedication to meeting changing market trends. Compass Rise features a nearly indestructible metal frame, enhanced heat settings, and first-in-class ergonomics. Compass Rise is now available for purchase on the Vessel Brand website, through Multi-State Operators (“MSOs”) and select retailers nationwide.
JustCBD introduced new products to its line of offerings – JustCBD+ Calm Gaba & L-Theanine Mixed Berry Gummies and JustCBD+ Sleep Magnesium and Melatonin Raspberry Gummies. These innovative gummies are designed to support stress management and promote relaxation, as well as enhance sleep quality. The JustCBD+ Calm Gaba & L-Theanine Mixed Berry Gummies are formulated with an optimal blend of Gaba and L-Theanine, renowned for their calming properties. These ingredients are combined to assist users in managing stress and attaining a state of relaxation. The mixed berry flavor enhances the experience, making stress relief both effective and amiable. Melatonin gummies are one of the Company’s best sellers.
The Company entered partnerships for the distribution of Vessel Brands in the United Kingdom, and in Israel with Althea Group Holdings Limited and IM Cannabis Corp., respectively.
Flora entered an exclusive distribution agreement with Me Raw Trade Ltd. to distribute both JustCBD and Vessel branded products in Poland.
Premier small-cap opportunity on the NASDAQ. A potent blend of growth and stability in the cannabis market.
Clean balance sheet provides liquidity and positions the company to capitalize on market opportunities. No long-term debt. Operations have been optimized with meaningful reductions in operating expenses and cash used in operating activities.
Aggressive M&A and strategic expansion. A bold approach pushing reach into lucrative markets like Germany, and the United States. Diversified revenue streams and positions well in regions with rapidly evolving cannabis regulations.
Favorable political timing with a solid footprint in Germany, which is the largest legal cannabis market in the West. In the US, support for legalization has reached 70% in 2023 with both Presidential candidates signaling support for cannabis reform.
Diverse product portfolio appealing to wide, growing consumer base, from wellness essentials like JustCBD to premium cannabis accessories under the Vessel Brand.
Global reach and market penetration with international presence in key cannabis markets, from the U.S. to Europe.
Leadership and proven success with a strong vision for the business, plenty of skin in the game. A team of seasoned executives in cannabis, finance, and global capital markets
In Summary
Flora Growth Corp. (NASDAQ: FLGC) is a small cap NASDAQ firm WITH CASH ON HAND ($6.1M as of Q2 2024) and about $2M in credit! FLGC is building a next generation cannabis company and is firing on all cylinders across the world to build its name.
“In the second quarter of 2024, we at Flora, demonstrated an aptitude to make accretive acquisitions and form strategic partnerships to capitalize on the most robust market trends. In Germany, we acquired TruHC Pharma GmbH in response to the de-scheduling of cannabis, the reforms surrounding cultivation for personal use, the establishment of cannabis social clubs, and the removal of cannabis from the list of prohibited substances in the Narcotics Act. In the United States, we entered a joint venture with Althea Group Holdings to capitalize on the rapid growth in the beverages market. In Australia, we acquired Australian Vaporizers to expand our e-commerce foothold and Vessel’s reach.” – Clifford Starke, Chief Executive Officer
The plant may come back into the spotlight this election year and could be a catalyst to fuel a rally among companies publicly trading in the space! These developments are already happening in Europe and globally where FLGC is doing business and thriving!
Political support for cannabis is at an all-time high now! These developments are already happening in Europe and globally where FLGC is doing business and thriving!
The legal cannabis industry is still in its early stages and the market opportunities remain significant, especially if the plant may be headed towards federal legislation in the United States!
The legal cannabis industry is still in its early stages and the market opportunities remain significant, especially if the plant may be headed towards federal legislation in the United States!
Now may be one of the most exciting times to have your eyes on the legal cannabis space as the U.S. may be in the beginning of a wave of favorable legislative reforms with both major party presidential candidates expressing support!
These candidates may have opposing beliefs on many topics, but cannabis is one important topic that they look to be agreeing on.
With a clean balance sheet health as revealed in Q2 and a strategic growth plan, Flora Growth Corp. (NASDAQ: FLGC) is creating a tremendous footprint in one of the fastest growing sectors.
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