Flora Growth Corp. Provides Update on Hoshi Investment in Portugal

Core Insights - Flora Growth Corp. has made significant progress in its investment in Hoshi International Inc. in Portugal, with a focus on cannabis production and processing [2][3] - Hoshi has secured a financial partner to cover capital and operational expenses, facilitating advancements in facility construction and licensing [2][3] - The first commercial harvest from Hoshi's facility is expected in 2025, following the receipt of a GACP production and processing license [2][4] Facility Development - The facility includes a 1,200-square meter greenhouse with a production capacity of up to 1,500 kilograms per year [2] - Approximately $20 million has been invested in the facility to date, employing 18 full-time staff [3] Financial and Ownership Structure - Flora initially invested $2.4 million in Hoshi in 2021, acquiring a 10% ownership stake [3] - Hoshi controls 51% of the Portuguese entity operating the facility, with plans to reduce its ownership stake to 25% as milestones are achieved [3] Market Position and Strategy - Portugal is viewed as an attractive location for cannabis production due to its favorable conditions for high-quality medical cannabis [5] - Flora is exploring the expansion of its EU-GMP license from Germany to establish a direct sales channel for high-quality medical cannabis from Hoshi [4][5]