Fort Lauderdale, Florida--(Newsfile Corp. - November 20, 2024) - Flora Growth Corp. (NASDAQ: FLGC) (FSE: 7301) ("Flora" or the "Company") is positioning itself as a first mover in response to Australia's recent regulatory changes by offering a comprehensive range of products tailored to meet the evolving needs of pharmacies. With the Australian Government's new regulations shifting the supply of disposable nicotine vaporizers and other vaping devices from retail environments to pharmacies, Flora is committed to providing a one-stop shop for pharmacies' needs.
Australian Vaporizers ("AV") was one of the first entities in the country to register its products and launch Vessel's portfolio in the country. Since its inception, AV has sold $32 million worth of product. The Vessel brand has demonstrated success in the Australian market, emerging as a preferred choice for cannabis accessories in a highly regulated environment. With stringent restrictions in place, only a select few products meet the regulatory requirements for sale, and Vessel has distinguished itself as one of them. This unique positioning has allowed Vessel to gain a competitive edge, reinforcing its reputation as a trusted and high-quality brand in the Australian medical cannabis ecosystem.
Key requirements under the new regulations include mandatory registration, prescription mandates, and specific packaging and labeling standards. In response to these changes, Flora, through its subsidiary AV is taking proactive steps to ensure that pharmacies are fully equipped to meet the demands of the new regulatory landscape.
AV has pivoted its business model to focus on business-to-business sales to pharmacies, while simultaneously expanding its non-vape product offerings on its business-to-consumer website. This strategic shift ensures that AV remains at the forefront of the industry, providing pharmacies with the products and support they need to comply with the new regulations and meet the needs of their patients.
Key Initiatives to Support Pharmacies
AV has undertaken several initiatives to help pharmacies navigate the new environment:
Establishing Relationships with Pharmacies: AV has been actively building relationships with pharmacies across Australia, engaging in educational programs to inform pharmacists and medical practitioners about the benefits and usage of their products, as well as the legal requirements for supplying devices under the new regulations.
Securing Import Permits: AV successfully obtained its import permit and has seen some of its flagship products approved for import in recent weeks. This development allows AV to supply pharmacies with a wide range of compliant products.
Developing Distribution Channels: AV has been establishing robust distribution channels to ensure the longevity of its partnerships with pharmacies. AV is also exploring partnerships with cannabis warehouses to create a 'plug & play' system for pharmacies, enabling them to fulfill patient orders efficiently. This system will offer patients the convenience of uploading their prescriptions online and choosing between 'click & collect' or home delivery through a trusted partner.
Expanding Outreach and Fulfillment Capabilities: AV is in the process of partnership with major distribution chains to broaden its outreach and enhance fulfillment capabilities to further strengthen AV's position in the Australian market.
Consignment Agreements with Independent Pharmacies: AV has entered into consignment agreements with trusted independent pharmacies, fostering beneficial relationships that support both the pharmacies and the patients they serve.
According to the Australian Health Practitioner Regulatory Agency, there is approximately one million Australians who turn to medicinal cannabis treatments. Out of a population of 27 million people, this represents 3.7%.
AV has launched Vessel Brand products into the Australian marketplace, establishing a highly sought-after long-term market opportunity due to the product's limited availability in the country.
Commenting on the Company's progress in Australia, Clifford Starke, Chairman and Chief Executive Officer, said, "We applaud Australia's move to medical. Flora is committed to bring a proactive partner for pharmacies as they navigate new regulatory changes. We aim to simplify the process for pharmacies and ensure they can meet the needs of their patients with confidence."
He continued, "Our focus on building strong relationships with pharmacies and developing new distribution channels positions us to be a pioneer in the Australian market. We are dedicated to supporting our partners in Australia in every aspect of their business, from education and compliance to distribution and patient care. This holistic approach ensures that we are not just a supplier, but a true partner in their success."
About Flora Growth Corp.
Flora Growth Corp.'s mission is to become the leading NASDAQ small-cap international cannabis company. Flora is a cannabis-focused consumer-packaged goods leader and pharmaceutical distributor serving all 50 states and 28 countries with 20,000+ points of distribution around the world. For more information on Flora, visit www.floragrowth.com.
This press release contains "forward-looking statements," as defined by U.S. federal securities laws. Forward-looking statements reflect Flora's current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words "believe," "expect," "anticipate," "will," "could," "would," "should," "may," "plan," "estimate," "intend," "predict," "potential," "continue," and the negatives of these words and other similar expressions generally identify forward-looking statements. These forward-looking statements include, but are not limited to, statements about: AV positioning itself as a first mover in response to Australia's recent regulatory changes by offering a comprehensive range of products tailored to meet the evolving needs of pharmacies, AV providing a one-stop shop for pharmacies' needs, including grinders, humidipacks, storage solutions, and other essential items, AV taking proactive steps to ensure that pharmacies are fully equipped to meet the demands of the new regulatory landscape, AV remains at the forefront of the industry, AV providing pharmacies with the products and support they need to comply with the new regulations and meet the needs of their patients, AV actively building relationships with pharmacies across Australia, engaging in educational programs to inform pharmacists and medical practitioners about the benefits and usage of their products, as well as the legal requirements for supplying devices under the new regulations, AV establishing robust distribution channels to ensure the longevity of its partnerships with pharmacies, AV exploring partnerships with cannabis warehouses to create a 'plug & play' system for pharmacies, enabling them to fulfill patient orders efficiently, This system will offer patients the convenience of uploading their prescriptions online and choosing between 'click & collect' or home delivery through a trusted partner, AV building partnerships with major distribution chains to broaden its outreach and enhance fulfillment capabilities to further strengthen AV's position in the Australian market, and AV entering into consignment agreements with trusted independent pharmacies, fostering beneficial relationships that support both the pharmacies and the patients they serve. Such forward-looking statements are subject to various and risks and uncertainties, including those described under section entitled "Risk Factors" in Flora's Annual Report on Form 10-K filed with the United States Securities and Exchange Commission (the "SEC") on March 28, 2024, as such factors may be updated from time to time in Flora's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov/edgar. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Flora's filings with the SEC. While forward-looking statements reflect Flora's good faith beliefs, they are not guarantees of future performance. Flora disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based on information currently available to Flora (or to third parties making the forward-looking statements).
