We all witnessed the legal cannabis market’s explosive kickoff in 2018 and 2019 – an era of multi-billion-dollar valuations for companies with the biggest grow operations, and most licenses.
Then we saw it all radically shift in 2020, away from the “bigger is better” plays into what it should’ve been about all along: FUNDAMENTALS.
Today’s market has wised up and only serious players with solid financials, expansive market reach, and strong leadership are still standing tall.
Those who meet these criteria have a real chance of gaining investor traction in a market still projected to grow to $176 billion by 2030 at a CAGR of 23.9%.1
A common pain point in the cannabis industry is the cost of production vs the retail price. Those with a lower cultivation cost per gram were able to compete with competitive (and consistently dropping) retail prices.
You’ve likely heard the phrase “if you can’t beat them, join them” … well, that might be exactly what a lot of cannabis companies are saying once they discover Flora Growth (NASDAQ:FLGC).
Here’s why: Flora Growth is now operating a 254 acre cultivation operation and a 16,000-square-foot extraction facility with multiple state-of-the-art laboratories in Colombia.
Thanks to that operation the company recently reaffirmed that it has the ability to produce 43.6 tonnes of low-cost THC and unlimited CBD with production costs of just $ 0.06 per gram of dried flower!2
No Wonder Flora Growth is Being Called “The Next
Generation Cannabis Company!”
Flora Growth (NASDAQ:FLGC) has a lot going for it and it all starts with the company’s unique three-pillar business model that includes low-cost cultivation & manufacturing, a diverse house of brands and a fast-tracked life sciences unit.
It’s that business model that provides the company with a steady flow of profits and protects it against the revenue dips that can often come with bulky cannabis growing startups.
6 Reasons
Flora Growth Corp. (NASDAQ:FLGC) is a REAL Contender
1
Strong Leadership: Led by a proven team with decades of industry-leading experience across CPG brands including former executives from Macy’s and Amazon.
2
Rapid Revenue Growth and M&A: Ever since the successful IPO in May 2021, Flora Growth’s revenue has been rapidly growing. In H1 2022, revenue rose by a staggering 604% (and that’s after it grew by 329% in H2 2021). For FY 2022, the company is predicting $35-$35 million in revenue, meaning 300-400% growth year over year.
3
HUGE Portfolio of Assets: Amassed 600+ products and 70+ medical cosmetic licenses across 16,500+ points of distribution in LATAM and the USA, with category-leading brands such as newly acquired JustCBD for US$33 million, which already boasts over 300 products in their line, 14,000 points of distribution and over 300,000 customers, having generated audited revenues of US$28 million in FY 2020.3 They now have over half a million online customers and an ability to market products not impacted by strict cannabis marketing rules.4
4
Ultra Low-Cost Production: Huge logistical advantage from centering cultivation operations in Colombia, where there’s favorable regulations, optimal growing conditions, seasoned workers, a currency advantage, and ultimately a MAJOR cost-per-gram advantage. It costs the company only $0.06/gram, which is +98% less than Tilray, ~97% less than Sundial and Aphria, ~93% less than Aurora, and even 60% less than their next closest competitor Clever Leaves.
5
Global Expansion: Flora Growth (NASDAQ:FLGC) has successfully entered 13 countries through multiple sales agreements and GMP-compliant and certified facilities allowing for access to both medical and recreational markets. Europe is just beginning to jump on the CBD train and more countries are adopting favorable THC laws.
6
Cannabis Research: Flora Pharma Division was formed to identify scientific gaps in the cannabis industry and work to translate that to new data-backed pharmaceutical cannabis products, to further expand and improve upon the rapidly growing portfolio of assets. By the end of this year, they may be able to make pain and inflammation claims directly on their patent pending CBD formulations – a massive market.5
Since its NASDAQ IPO in May of last year Flora Growth (NASDAQ:FLGC) has wasted no time getting down to business, and it’s easy to see how sharp the trajectory is going upward.6
- Total revenue for H1 2022 was $14.9 million, a 604% increase from H2 2021 and 117% up from H2 2021
- Gross Profits increased to $6.5 million, up more than 5x year-over-year and 4x sequentially
- Cash on hand as of June 30, 2022 was approximately $10.3 million
- Guidance of $35-45 million in 2022, which would realize projected revenue growth of 300-400% year over year
Institutional Investors Are Starting to Catch On!
Flora Growth (NASDAQ:FLGC) is quietly amassing a strong institutional presence in its ownership structure. Here is the current structure:
- 9.29% insiders
- 9.10% institutions
- 10.03% of float held by institutions
- Number of institutions holding shares – 37 (including Morgan Stanley and Highbridge Capital)
That strong level of institutional ownership is another sign that market experts believe this is a solid company with real growth potential!
The escalating attention from institutions also means now is the time to learn more about this company. This could be the next GW Pharmaceuticals, which was recently purchased by Jazz Pharmaceuticals for a staggering $7.6 billion.7
Click on the link below to discover how Flora Growth (NASDAQ:FLGC) could quickly become a major player in the growing cannabis market.
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