Flora Growth Corp (NASDAQ: FLGC) entered into a non-binding Letter of Intent with Evergreen Pharmacare Pty Ltd, a licensed Australian distributor of medical cannabis products. The dominating cultivator and manufacturer of global cannabis brands and products, Flora Growth announced to supply its premium dried flower and products. With its first commercial harvest and obtaining the necessary export license, the firm can export its medical-grade cannabis products.
The Data firm FreshLeaf Analytics forecasts, over the past two years, the Australian medical cannabis market to surpass AU$200 million in 2021 and notes vital patient growth metrics by a factor of 15x. Moreover, according to the estimation of prohibition partners, in 2025, the Australian medical cannabis market will reach US$1.5 billion. Evergreen provides medical cannabis products to patients, primarily physicians, healthcare practitioners, and pharmacists, to educate about the use and authorization of medical cannabis. Furthermore, Evergreen was born out of necessity for its patients to have quicker access to premium, economic, AUGMP-certified medication via the Special Access Scheme Category B application pathway.
Tristan Hyodo’s Statement
Chairman of Evergreen, Tristan Hyodo, said they are thrilled to agree with Flora Growth and furnish Australian cannabis patients’ products at a more economical price point than ever before due to Flora’s strategic low-cost cultivation and global logistics expertise. He also adds that the recent decision from the Therapeutic Goods Administration to provide new product cannabidiol to be sold over the counter without a prescription encouraged them.
FreshLeaf’s Estimation
As per the estimation of FreshLeaf, the pharmacist, only the CBD market in Australia will grow to AU$250 million in sales of products at market maturity, capturing around 2 million customers. And they also expect that once low-dose CBD products become available over the counter, many existing medical cannabis patients will migrate to the pharmacy channel. Nearly 1-in four medical cannabis patients consume a CBD product at a daily dose below 150mg, spending roughly $8.02 per day and AU$29 million annually based on the medical patient metrics. Since the Colombian government revised its cannabis laws, the LOI is the second that Flora has signed.