Flora Growth provides update on sale of Colombian assets

Flora Growth provided an update with respect to the purchase and sale agreement for the sale of its Colombian-related subsidiaries and assets to a private company in consideration for C$0.8 million, entered into on July 5, 2023. The sale relates to all of Flora's operations in Colombia, including its interest in (i) its 361-acre Cosechemos farm located in GirFon, Colombia, and its related processing facilities and inventory and (ii) all other assets relating to Flora Lab 2, Flora Lab 4 and Flora's Colombian food and beverage and consumer products business (collectively, the "Colombian Assets"). The sale is expected to close by July 31, 2023. The Company intends to maintain a presence in Latin America through Just Brands' distribution relationships.

"The divestiture of our Colombian Assets is part of our plan to concentrate on core business divisions. This being a prominent lifestyle brand in the United States and a player in international pharmaceutical distribution focused on therapeutics, starting with medical cannabis," said Clifford Starke, Flora's Chief Executive Officer.

"We have made several strategic changes to cut costs and streamline operations. These changes are projected to deliver annual cost reductions amounting to US$6.1 million in cumulative annual savings when taken together with the US$3.4 million in savings from the divestiture of the Colombian Assets," said Dany Vaiman, Flora's Chief Financial Officer.