Another country to be serviced by FLWR could be a significant revenue source for the company.
"(“Flowr” or the “Company”) is pleased to announce that it has entered into a supply agreement (“Supply Agreement”) with Focus Medical Herbs Ltd. (“Focus Medical”), a company which IM Cannabis Corp. (NASD AQ: IMCC) (CSE:IMCC) (“IMC”) has an exclusive commercial agreement with in Israel. Pursuant to the terms of the Supply Agreement, a wholly-owned subsidiary of Flowr has agreed to export up to five hundred kilograms of premium dry flower cannabis in bulk form into Israel. The Supply Agreement represents the Company’s first significant international distribution agreement and first export opportunity into Israel.
The Israeli medical cannabis market was characterized by strong year-over-year growth in 2020. According to Prohibition Partners, active patients grew by approximately 17% from 2019 to 2020, reaching over 70,000 patients, leading to imports into Israel of over 7 tonnes by July 2020. Israel also announced plans to legalize recreational cannabis in late 2020, which will further drive demand for high-quality cannabis products. Brightfield estimates the market will generate over U.S.$130 million in 2021 and reach over U.S.$230 million by 2025.
“We are extremely pleased to be introducing our cannabis to the Israeli market in partnership with IMC and Focus Medical,” commented Darryl Brooker, Chief Executive Officer of Flowr. “We expect the Israeli market to be an important destination for us to grow our brand and distribution reach internationally. Coupled with our ability to grow high THC premium dry flower from our E.U. GMP facilities in Portugal, we view this partnership as an important next step to becoming a significant international producer of cannabis with a globally recognized brand.”
“IMC and Focus Medical have chosen to partner with Flowr because of its reputation as a premium cannabis producer in Canada and abroad,” commented Oren Shuster, Chief Executive Officer of IMC. “We believe that the Israeli market will receive Flowr’s renowned BC Pink Kush and BC Black Cherry strains with open arms. We look forward to working with the Flowr team to market and sell these premium and ultra-premium offerings.”
The Company expects its first shipment of BC Pink Kush to be available in the Israeli market in H2, 2021. The partnership with Focus Medical is for a period of three years, subject to certain early termination provisions and applicable regulatory requirements including the receipt of import and export permits.
About Flowr
The Flowr Corporation is a Toronto-headquartered cannabis company with operations in Canada, and Europe. Its Canadian operating campus, located in Kelowna, BC, includes a purpose-built, GMP-designed indoor cultivation facility; an outdoor and greenhouse cultivation site; and a state-of-the-art R&D facility. From this campus, Flowr produces recreational and medicinal products. Internationally, Flowr intends to service the global medical cannabis market through its subsidiary Holigen Holdings Limited, which has a license for cannabis cultivation in Portugal and operates a GMP licensed facility in Portugal. In 2020, Flowr’s BC Pink Kush was recognized as the top indica strain in Canada by KIND magazine.
Flowr aims to support improving outcomes through responsible cannabis use and, as an established expert in cannabis cultivation, strives to be the brand of choice for consumers and patients seeking the highest-quality craftsmanship and product consistency across a portfolio of differentiated cannabis products."
