Flora Growth (FLGC) 10 May 222021 Q4 Earnings call transcript

Hello, everyone. Apologies for the slight delay here. Welcome to the Flora Growth 2021 Conference Call. This will be the first full-year earnings call Flora has had a public company, so we welcome everyone. My name is James Williams, VP of Corporate Development and Investor Relations.

conference viewing is of shortly this will and the that for publish after note (ph) recorded, call we meeting. Please the end

question-and-answer as submit initial Webcast the the webcast the formal instructions we'll begins. in a Following we've further provided remarks, chat function participants Q&A question a short can and directly the through conduct session.

Chief Difficulty] Warnock, Luis of as well Chairman website of and release the On as Chief Officer; this a President, Commercial Merchan, morning call [Technical Relations be Growth with press copy me CEO on Market Jessie issued EDGAR. was of section on Casner, Board; the Flora Investor press release today, Jason officer. found are and the the can that

We this forward-looking placed and uncertainties. our statements may prepared all this guarantee contained I would statements call, additional reliance in may session. with like management them. filings These statements, undue risk and future performance the are to Commission. contain subject And factors to to Securities management the Q&A the forward-looking on therefore, do -- take not and during risk remarks not refer during remind Exchange in should which be that you you

reflect to from the forward-looking factors statements the could more discussion events publicly update law. under or company to circumstances, future detailed to applicable correct or maybe statements. For required of undertakes made the any The the cause differ actual forward-looking that except in results securities materially projections no presentation as obligation during

GAAP adjusted today, certain Flora EBITDA, financial note to such this expenses financials. as non-GAAP excludes call please refer which will on Finally, from its we in measures

Luis? of Luis pleasure President, Flora my Growth’s CEO introduce Merchan. and the Chairman At this time, it's Board, to

you hello, expect what Thank taken walk time you, call. from Today, James our appreciate well as insights, be We the XXXX and XXXX we the you earnings give I as to here you've will and through us. performance everyone. Welcome with our introduction, to XXXX. for

of leading Life Difficulty] a manufacturer and of cannabis Brands and all-outdoor distributor global [Technical and House Sciences. cultivator, As Wholesale, and Commercial

our the and located the four. labs cannabis derivatives on Wholesale products and to manufacturing costs of three world grow, one, wide-array the facilities, at Flora operations Colombia. a now include two, we cannabis Commercial Flora This infrastructure finished Bucaramanga, of cultivation grow in one our of export. lowest for Where facility and production and outskirts extract, allows manufacture and

available points them consumers the Our now House of of of to XX,XXX comprises portfolio over Brands brands products and around worldwide. over all the distribution the of XXX,XXX over reaches This portfolio world. and consumers world

pillar Sciences for Life but Our is research consumers not quickly focused by safe effective only patients ready grade and development that are pharmaceutical use and and the and efficiently. on of products market

year our full of XXXX we our foundational company as for a closed first was revenues. year

This strategic this the project, M&A we Flora revenues, a global milestones. our our gain infrastructure market and cannabis increase Flora significant to critical During May, of time, in strategy. achievements balance healthy in IPO included the sheet of of These and the our in NASDAQ, distribution, accelerate sheet, completion deployment balance positions in achieved share we the insured and XXXX. market has believe strengthening

especially over Sciences Wholesale our cannabis House fiscal revenues (ph) regulatory legal changes financial to approximately needed Brands realized as and framework pillars. Colombia, XXXX. in activate XXXX million, the Life our in Audited waited mostly Let's $XXX,XXX was year from up review we’ve the growth performance. Flora’s to $X were This just of for pillar, a in

continued QX. up with trend second increase the This saw for over over monthly month first of has to growth over And the of its even the the revenue XXX% half for was highest XXX% company and more XXXX, year revenue XXX% last Revenue period has of same on of approximately QX the the the of additive revenues exciting, inception. half XXXX an year. delivered since up over QX April

million XXXX, $X.X profit In gross gross or totaled XX% margin.

in Our gross effort margin was temporarily [indiscernible] distribution Colombia. food to to due impacted an secure

Going increase our as margin to to see an our line. margin JustCBD Vessel, company's contribute businesses in arm like number expect Commercial gross the top forward, we and more higher

in of we adjustments, $X.XX focused after $XX a U.S. increased loss adjusted issuance, expenses JustCBD million. $XX.X primarily for outstand. Net The loss average $XX.X an in items, be company's $X year of XXXX, both This weighted totaled increasing capacity for loss shares $X in legal Operating were loss one-time demand which totaled our was million of expenses. Vessel, million million. the an expenditures of $XX.X were a and in majority in CapEx directed to resulting infrastructure EPS the million $XX at service loss The based and one-time our operating and over internationally. EBITDA to on million, and deployed in the expenditures million of including of EBITDA came included resulted acquisition

for ensure pillar execution, has been we our to goals. have our our to achieve to capital According sufficient strategy operational

continued balance As us compared a XXXX with the expansion. begin invest company This of of the to infrastructure cash of to XX, XX, $XX.X JustCBD allowed million December and XXXX. million $XX.X critical to had global XXXX, on the December our acquisition

of had million. of working As Flora $XX.X December XXXX XX, capital

stated [Technical of accomplished reiterate to-date a million confidence As year-over-year. ahead, pleased I’m growth and $XX fiscal our million for over Difficulty] $XX to at XXX% to what have look to XXX% year we guidance previously in we these XXXX

also addition our in financial the results, following we milestones XXXX In operational major -- XXXX. to accomplished

in a art the derivatives excellent received cost state of licensed First, stars at specifically on for using facility drugs quarter start XXXX. a one outdoor marked, completed cultivation scale. largest decide to this in an for XX.X the our The cannabis and quality year Colombia. cultivation our world, global facilities our We the high cannabis of THCP commercial low at remains facility less cultivate and harvest, certification first of

we Colombia, complete to extraction are XXXX. our in of we we've And which structured now were calling facility previously able X. Lab first last of our month in We completely Flora construction the announced, as

they always our as a international strong grow distribution ingredients, portfolio an are understand As and network flow brands we through. supplier products that

entered starting XXXX, company strategic emerging chain, and As the International, into distribution support processing along of cannabis greatly European a strategy. flower cannabis and European entire Hoshi including focused assets a cultivation, dry with strategic derivatives value market the distribution in with fully the will our EU partnership integrated that to oil we

on so in to As cannabis has opportunity our for the evolve, of industry strategy us. front capitalizing has that Flora continued

global produce from of derivatives Colombia, our core While chain building a to supply mission. cannabis remains

tremendous Brands we so become months, also XX [Technical our portfolio Difficulty]. growth. past experienced the much XXXX, have House Over of

on Loungewear now are products Macys.com. available Stardog Our

Cosmoprof, Mind with And major enthusiasm organization. whole recognized skincare met a continued be our also from to having sustainability, been Naturals brand The retailers. launched trade formulations as Walmart.com by great the its in at beauty a for Mexico. industry

beverages agreement Colombia. Additionally, cannabis Tonino licensing to infused States we were or a brand reach Lamborghini the with to distribute in United able

cannabis We the products of anticipate are will give products top trending this at U.S. Flora research. cannabis brand market. significant With the to that beverage exposure

a Mambe U.S. in line to sales into Our towards brand the countries continued other strides see growth the moving term. near in making Colombia. and in product We're

has of strengthened Jessie We to-date hear two Strategy of an and This meaningfully category to to the accessories leading our Vessel. officer. a contributed has Marketing our also and the James cannabis adjacent in acquisition talent acquisition depth U.S. organization, Choe, the of Flora’s leadership levels product all provided the Jessie later call. additions completed our footprint Chief Officer important in organization brand in Chief from Casner, include at We'll bench

them understanding a the demonstrated Vessel operational a of way. and brand team high meaningful prepared a of forward excellence U.S. the deep has bring has with to and that impactful The Flora consumer of in level cannabis in building

efficiently, that is integrate milestones creditor [Technical we may quickly to [Technical (ph) Difficulty]. and able been sections such benefit realize acquisitions, have We almost Difficulty] these that

the the One of developments by our Sciences proposition establishment led exciting value of future drive Annabelle of a Flora pillar, Dr. the Researcher, of helping Life Board of Manalo-Morgan. was the most Directors member Flora

therapeutic that hope through we Dr. do ability later Here, expeditiously We call. while to Cannabis believe necessary have We patient in look safety, we hearing the in potential plant. the compliance unlocking the all measures. and to from we prioritizes move way forward the of regulatory to this Annabelle are

Chief ask that, Commercial Difficulty]. our Officer [Technical With I'll

Thanks you, this the for year of today Flora. at progress, Thank amazing overview. we've the opportunity to Luis. for That's really join a pivotal you all some morning. Good in made

extraction mentioned, company's my name at Officer I'm is Luis Jason operations, commercial through wholesale, Lab our locations. processing various the cultivation As our the our and Chief Commercial as oversee as Warnock. and well includes I and facilities Flora which Flora,

we market are core positioning how with discussed the cost key of our cannabis begin the have From our advantage cultivation. advantages the and differentiation. Let's in and cultivation in Colombia beginning, cost to geo

be at for pricing. market the continues of element As the believe consistent reliable, change cannabis most positioning commoditize, and competitive will the of strategic around highest the world regulations quality cannabinoids to we production success

The demonstrated location to With growing global industry-leading a costs, footprint round the all-outdoor of and yield advantages, daily of soil ideal conditions, acres a approximately inherent of XXX including XX clean to for out suite all cultivation a facility hours sunlight, in our water Colombia licensed -- plus provide volume a largest versus differentiator That flower. at the our cultivation opportunity we $X.XX gram able and of stable presents grow, we to that remains per harvesting. dried perpetual of significant our experience continue competitors. continual harvest in year at

Colombia, in changes allowed that the today this in the for have high regulatory cannabis of XX% export the that, cannabis to accounts margin for flower, importantly market. as March XXXX, happened of year which still dried More global

something derivatives active well ingredient the beverage food was expedited we're As realize use regulatory well in to to change for revenue clear and that as beginning Flora, just export at goods. products an now cannabis provide opportunity in as shift for the has regulations the as and XXXX. the topical of This able that as

the the this we to from of well of receipt mentioned the Increasing was cultivation to quota processing new our of change government. extraction planning upon had generation, March as up our capacity we way earlier Luis a export new XX,XXX export our farm kilograms have revenue that high-THC capabilities Colombian and element of labs. our maximize key products, quota, the that over A in psychoactive Flora’s as regulation received ramped

the In harvest with flower, pilots the our prove processing Since the we multiple still year, high-THC the as harvest of successful on-site agricultural in high-THC facility. derivatives. we commercial of strains in now and strains spring, accomplished began report to we rich while very extraction several I'm impending focus with Last changes of a ground on investigation as ahead. pleased an plants completing weeks that the CBD our have XXXX, efficacy regulatory and well

we demand flower. quality the facility of announced both for We the the outdoor of export in have well global for high-THC available as the Israel-based as This illustration strong our a purchase is the market. the of genetics perfect see cultivation with agreement [indiscernible] already at dried flower grown a

this Israel, already new placed in again, Beyond we And purchase online. Malta. comes for on of be and for -- to interest And both potential U.S., I Portugal high-CBD agreement, have Africa, South fully received think companies to unlock cultivation beginning soon Australia, on when export we to orders facility. the expect from and quotas production high-THC and execute as Germany, this products only as the -- this LOIs we're

and we derivatives. to high the flower for opening new and regulatory and new As the regulation continue global THC of distribution CBD streamlining see and channels up, environments both rich

active and of the approximately for Refined account market. global cannabinoids cannabis XX% pharmaceutical ingredients

cannabis the most chain, of advantages believe become on competitive established a derivatives Given we global supply and strategic Flora our of scale. one suppliers can

necessary site, at transform shift as use to in our in the We vertical all cost portfolio. cultivate derivatives our advantage. we to earlier significant addition, and of integration, all have oil within raw highest supply currently begun deployed widely a cannabis to global cannabis year, now global CapEx, this established In on Flora product the ingredients place has already connecting true reported broad investments for and all standards own

our to site, Last Cannabis and has mentioned, year, along received with processing certification we for This certification X, Medical Flora expect EU built complete Luis Lab this year. and this standards, to GACP later formal we facility. as International GMP been cultivation fully our

Flora closer already over -- branded which business second our Bogota, Flora with scope. take at cosmetics. facility, Lab now larger the in this dietary in produced Lab before, product is begin look counter Colombia. including certifications, for phytotherapeutics, a supplements. own as our X located products those third-parties. as and focus for I white-label cannabis wholesale And I holds as and derivatives well for is GMP receiving Let's will Now the our Flora inclusion on oil mentioned formulations Flora's multiple

products Naturals are the facility a with foot square XX,XXX line a distributing across the with for along use in domestic produce the registered we market. we Flora of channels the floors, distribution number myriad is At X, four selling currently INVIMA manufacturing across where Lab in many Built Mind counter products, and SKUs and Colombia. other Colombian over of

part first facility. U.S. year Located Newly JustCBD only-products from was for foot and acquisition in XX,XXX Lab CBD and formulation Lauderdale, our This in hemp as Flora laboratory produced is the manufacturing white number use add market. of Fort laboratory in this X. produces formulation U.S. this custom the international unit in square

for Lab range X number wide of from topicals Flora edibles third-parties. produces entirely a products custom and

better as U.S. continue well Mind us Floor the base large international connect the Vessel, JustCBD American brands integrate distribution. number customers to like from provides with the we to production X and connect as customer As wholesale and North existing capacity custom white-label Naturals, Lab

our lab fourth formulation Colombia. in custom prescription lab Lab our medical is X and Finally, number Bogota, Flora

pillar, of the X. and patent our morning clinical X work part cannabinoids. number at the group is specifically on this you Sciences Sciences little Dr. Flora part detail will can a towards more prescription is medical working give Lab we're pillar formulations formulation on Life be number later of Life discussing doing As applications Annabelle and working our of Flora

With market and legal white-labeled the built both these U.S., four capacity and to we facilities all intended distribute and cannabinoid of transform, extract, branded in our between formulations markets. manufacture, Flora fully Colombia out

key extraction understanding with cultivation processing, reduction all We the the will equation. built wholesale a largest drive one global in a cost the built with state-of-the-art to industry, have that of facilities capabilities paired continue and

one-tenth facility together allows our operate -- U.S. listed dollar during Colombia’s workforce cultivation U.S. Colombia, to together that primary our the company, highly us construction U.S. to us compared a that given as approximately cost in Finally, capital and a skilled strong with at provides advantages and the the significant

such. want in we've been and to We integral honored believe emphasize. said That's part of we're as I community, Colombian an the

who and are our compassionate work to And Flora strived company well and We infrastructure as to taking on like operate. way. we as company meaningful those with always our local in necessities way. a our a the access and education positive staff those impacts have communities and work to our interact impact in has in our made with water investments communities rewarding in who power with

will take to strategy in global there because force We to region. it sense make remain makes our effort every are not the positive there We're advantage. for and we

To model, global recap, the one we just short year, in demonstrated operations. have commercial business our connected distribution of

further of have and our We to quality processing and cultivation engineers hired renowned efficiency our scientists agronomist, and the research.

We multiple that output high and that in state-of-the-art the manufacturing brought and THC rich States, a online GMP paired United of completed products and high flower, both facility extraction and harvest thousands Bogota both quality facilities are our have currently with in of CBD today.

value not place more We the be could I global necessary our the opportunity again unlock And fully with trajectory I supply. this the licensing line logistics opportunity potential commissioning, operations. the in of to for for global and the our within today. thank have you the the commercial equipment, with own product share organization. market business wholesale integrate about to to amazing you excited

with that, to I'd it over Luis, hand to And back like you.

you the year. for the your thank over past team to Jason, extensive you and work

large the with Brands our most Macy's, months JustCBD, relationships realizing the do you brand retailers we building meaningful the that leading of the is I team operations As what synergies. set value to cross-brand year, and consumers, professional bringing market integration products addition-ing been and many precisely serve such true The we well and is in to my House pillar. and in career the of and JustCBD working acquisition spent notably of the of most communities already consumer the developments first have There brands CBD few we most out February. of underway of just many exciting of in that know, as with are

To Officer. House officer, important are with our of in Choe strategic one along Flora Jessie? portfolio. Jessie brand James taken joined explore now would Chief of brand to like invite our Vessel and overseeing grown I what rates have pillars Founder Chief acquisition of are both we from can the our via the most marketers, who Brands team brilliant marketing Vessel Casner. Strategy She They XXXX, expect the our

Luis. Thanks,

that mentioned, shown prime already textiles achieved Luis the and our major we've Mambe success we our of our and meaningful penetration brands. Stardog, across momentum year. Shoe hemp Brands in be As up beverage for created global within brand their With shaping milestones XXXX to year line and the meaningful House signs markets. have food and of our last already unlock

this supply textiles to ensure we SKU curation, styles narrative chain on focusing and the beverage in hemp the bring mastery market finest and year, be acquisition food, we'll building, So industry. customer in to

offers at allows eye maximize in skincare skincare line, has in This Mind biodiversity nomination and of includes Flora, Cosmo of existing line, weeks a Italy. consumers and the of the skincares for Mind a CBD in Cosmoprof, the quickly a products one new trade and products trend the to winning launched had and the a retail demand in of which of market opportunities product line. clean addition celebrating Our Colombia’s Bologna, award by to attention they moisturizers, Naturals the line Flora which new ago around industry the cleansers the and serums, competitive the year, product creams leading few garnered globe range team line native focused cosmetics. and they organization on

U.S. the cannabis key cannabis you for key A was the in access the provided launching and products, being XXXX year expansion, global product ancillary of team completed in Vessel last a premium market recall will line November many that Flora, to Vessel launch be category a As transaction of critical more diversity will acquisition and the distribution and name designing the direct-to-consumer into of to few. Canadian website just dried focus XXXX via

has product you team consumers Vessel to bring across that's experiences MSOs, which to will LPEs, very been professional unparalleled or athletes leaders via partner diligently working the with to the soon. hitting of Additionally, many artists whether collaborations, industry, see the market

Vessel foothold the by strong between via also global to UK in continues and JustCBD’s key relationships EU We Meanwhile, distributors brought and its progress various U.S. expect expansion quickly. very about distribution enter remains countries JustCBD. to relationships

Germany two Czech in Poland, on focus is as Central JustCBD with Ukraine, The as distribution The key countries. Georgia well branded soon. Republic, some will first location opened storefront also and agreements business, for opening American brick-and-mortar Austria, and more South Estonia

continues will to that team domestically JustCBD new deploy as doors open be broader properties. help growth and across to well leveraging bolster scalable we'll direct-to-consumer tactics their novel Flora’s

As mentioned generation to which our as real paths of realizing offered as and meaning synergies between margin well House previously, the have are we revenue Brand properties, gross benefit.

secured will as access domestic for be American both how Vessel vape hardware soon to customer Vessel channels. those acquisition JustCBD accessories. international JustCBD support Vessels channels continue in Mind leveraging previously to has and expand And markets they Naturals North because well presence. received and retainment Vessel untapped approach their their of and will distribution is relationships to

our note across synergies Just brand few to a portfolio.

integration chain. of cannabis across gross as should cannabis of the not at being supply margin portfolio. One the into benefit as single be the and to to chain the highlight but global I Brands derivatives appropriate full we potential owned across another other yet most about scalable look market. Supply This only integration mastery want factor blended rapid provide the of product we see internalize our unlocking key vertical the House it of piece the of lines business, in Flora’s will the growth important our we'll

untapped leverage our global team's personnel pillar which ensuring these direct-to-consumer House to move look and to ability our relationships that key executive advantage we the assertively beyond, and advantage. across all of plan plant-based industry, develop to and under on to access remainder The XXXX existing and product of umbrella. to been capitalize If as primary the our new the brands Brands segments go-to-market of and to broader every Flora data be and synergies focus demand. we of in integration has the unlocking XXXX, the Our previously portfolio broader end provides across wellness continue cannabis markets innovate ahead will competitive products and markets

for quick at a Brands to And we that has Luis. year. Back House our time. been your you, what expect from look this Thanks of

to We continued Jessie. pillar. you, of watching Thank look growth the this forward

believe Dr. introduce is issues, a member some I a Annabelle Okay, not you of her. Directors, Board lead Dr. I to Annabelle, there? would be Hi, She's scientist. could of are our but having excited technical more

career to, deal applications the excited member a I've of -- Yes. the Life as exploring cannabis so Flora of movements medical of the experienced some to of I am of the And to Sciences great I'm and the Board, happy dedicated Scientists a my a report plan. initiatives. on head meaningful Researcher. today, of

fibromyalgia that first we like to already protocols in work clinical start safety our have I'd through of certain am to therapeutic progressed quickly to NHS, where delighted address get to to we phase. in trial the the potential phases on This trial study is needed study. pre-clinical Manchester from and approval report with to final with human and are we the the cannabinoids our UK, discussing partnership in I of are University studying taking place patients. of the

We year. hope the of see end to before patient trials begin the

our Sciences from team commercialization exciting Another to development the is pending patent of Life formulations. our path

alongside clinical our for trials, consumers. patients formulation cannabinoid-based and We produce our to in X, for lab, prescription prepare are Lab custom use prescriptions working Flora we as eventually and

the cannabis for use we grown over pursuing prescription registration in supplement but for dietary and trials Additionally, products. drugs, not actively and in only derivatives counter are our Flora

quickly intensive. capital with the safety than like cannabis Manchester, collaboration some path cannabis, because to-date, believe research produce This to high to trials. of our hopefully and more the quality have we and the traditional ecosystem, partners profile in we existing University through at based takes we Flora and our medicine, close access safely of cannabinoids of years very the completed type of But have usually is

we to NHS INVIMA, what is agencies and to the the future willingness cannabis. want also key as a the explore highlight like of of medicinal believe I

the our to work the are potential cannabis. Flora in at of world devoted Beyond about we clinic, educating the

As are we learning a curating platform. such, with partnership global in educational a leading platform curriculum robust of actively edX, online

module courses across being shortly with It's remainder very Spanish available the Notably, more on translated The (ph). is live. in from becoming focus our to first the of is curriculum the sea will English and of of conducted be year. business cannabis shelf to the

audience. available We’re thrilled soon this will information to a be massive

and I as look on your Luis. more to year time, forward this providing updates insights the intersection progresses. of cannabis science and you for Thank

Dr. Annabelle. you, Thank

how there's couldn't with a formula for laying we vehicle your operations, as forward a Science. XXXX rubric for year you have of Sorry, our approach but poised a supplier integration and much around from for keen development defining we year capital and human video our growth. the this to global as stage foundation excellence, was for structure get look value the on work, Brands, Life on our a of world. set continued infrastructure We team out build to a as And derivatives growth, House for of spent a long a to so your critical distributor and regards operational assets, term investors. for focus to the of cannabis of with focused and

promise its the minimal to capital all while debt. continued has of and raising growth scalable outside and on Flora incorporating very rapid deliver believe little We

new efforts arise, to through on our the our amount whether as of to the entry promise of wholesale markets unique pillars markets pharma Each holds a clinical via focus we to positioning cannabis our see individually. House most tremendous Brands, of leverage we our distribution one grade gain potential our trials on or of have products. the and the will opportunity believe We continue

So creates when profitability. and combined pathway scale to a

like I thank back invite now moderate. that, With to will us again I’d James you joining for Williams all to and

going Luis. some begin. we'll then Thank Wonderful. brief over submitted moment it you, now already questions. and I'll some give queue to us. a brief to have moment just We're a We

divisions AGP. the how provide revenue comes to the Can of you expect from JustCBD, split guidance acquisition first Gray, an Okay. question obviously on Luis? different This be update Erin across you including

Absolutely.

be of be for skewed This XXXX fleet pillars and towards revenue of terms House them three will our to significantly expect growth We three end. before activate all our meaningful year the a will contribute and of year Brands. in

the and of will between contribute and Wholesale expect and to Brands Commercial come of net XX% revenues from contribution operations. XX% our House we the balance our Our of

have revenue in As of Life Sciences guidance of from we projections activate today, our expect end we But I division. (ph) mentioned, the not included our Sciences before as year. of Life to

Maybe discussing for XX on in AGP. from on you -- more -- provide also countries as Jason sales? sorry, also Warnock, James quote color one's again in as this Choe the well partners Congrats progress those THC a the tonne little some on various flower. Can bit finding on timing of

question. Good James. Thanks,

quota, beginning cultivation with the understanding high-THC only -- the of begin of we strains could launch that of with quota. to the the technically update this key that the So is those

this So that was in year. March of

-- opportunity high-THC recognize we and for start strains. to those are we projecting QX going to to those So are when those distribute particular

So find partners. distribution necessarily goal not been has difficult locate to our

all we high section, cases quality-THC and products cost. proven and brokers partners we of in the already my that in are very competitive have some connect markets out a sure announced and at in mentioned deals do to continue us. available some I make as Again, that have the to to supply market We've supply

interest our shortage a initial funnel been haven't looking of had any expressions the getting we a of into to-date particular partners and and it’s So that LOIs issues for not opportunity. we're of

Thank you, Jason.

as up can following opportunity on comes opportunity as from Vessel in in Roth And JustCBD color Fortune the Can you discuss and XXXX, a that, question the Capital. growth well Scott Next the JustCBD color on of bit write margin little the a around synergies? on little profile? you

meaningful. It's Yeah.

to a gummies, product XX an was European and categories is distribution. a which us. SKUs. best States Hussein exceptionally in The which JustCBD XXX is some almost leader founder. category in are both in There's exceptional, is market company interesting who we leader founded the Rakine, United that and in by countries The markets their distributed share is starting and broadly are seller

experiencing territory JustCBD in from specifically expect JustCBD the are we the European tremendous in markets, products since Latin in of start market the the We clearest as XXXX second [Technical Difficulty] launch expect to in we the America, the half category our as category we and in the and growth to Colombia with to provides soon distributing. ground the it’s that where own share staked have

gross And as -- very on have cross healthy markets terms category depending invaluable. perspective, of been synergies, XX% in I around XX% margin of a product From the mentioned. of the them. XX are mix they There's

We also efficiencies in two have the Vessel the we weighted Vessel have we're categories. the save and from as several of heavily one distribution. synergies brand that cultivated leveraging [Technical product immediately had to over years This distribute And West synergies and DTC also XX,XXX Coast. now to identified We've both of Vessel terms revenues XX% points Vessel Difficulty] in the chain times shipping warehouses, of allows and East last the products. Coast costs find in across JustCBD coming channel. came us supply save JustCBD distribution between channel from to the was The

consumer. than are of intelligent opportunity will and very lines product I say, JustCBD gathering aligned finally, by And should Vessel we're encouraged from launching that the both the new cross-brand and I'm they

Wonderful. What Thank type it extraction onsite in [indiscernible] THC question Warnock, an you, as the you is provide you on on update production Luis. yields Fortune. Flora CBD well from Maybe capacity again again of the next outdoor currently? capacity. that are call Jason this Can seeing growing as for Scott

James. thanks, Well, Great.

strains been So at able back time as before, we cultivating some CBD going (ph) weighted mentioned last into I were and for out year. to the have cultivate looking high

the on and that capacity the use. and our multiple CBD So both proprietary is of opportunity different we across genetics the

have I in we're those. output also send of from a mean, various So seeing we that range certainly, THC we products cultivation. our very high we markets. CBD low over would And have different

kilos then So is week into your Currently, those we're extracted and producing our refined -- a experiencing we're capacity isolate from would distillate. XXX or with site. that been what be primarily around

perpetual looking at we're back, harvest. going Again, the

as high-THC of on That on mentioned our of today shift strains coming markets strains, up, and year that’s So XX% we're we're cultivation dry those extraction. QX export Again, business is be a facility current probably of what throughout James. our always the showing would our in continually these focused as harvesting again production. other for and be the dry line say of the XX% QX. using flower, and resources the being is just I can XX% is of about status single for earlier ramped flower, Thanks, extraction the

Dr. of our of clinical can the status and the on trials comment Annabelle, Manchester? preclinical you University with

chemical for review months we've is where and move of approval, takes allow note -- that and And as because will NHS detail a mentioned, extremely under all been that's an in the on six a ten cannabis We tested years go able I safety to [indiscernible] And are we prior actually into data done an quickly process We're very committee or a our in us and in FDA, to formulations the to costly. But pre-clinical metadata have profile, to the which compositions with dispersion. study completed in usually patients. patients. NHS five to we've then analysis.

animals, had we've array are to dose months of all packed and tested and full of already we've important, done just for course. our on in-vivo, with the filed so delivery. study, patents in cells looked for is and we've for into safety, patients. we've definitely we analysis which the the data And of formulations We've a and waiting go in most in-vitro tested approval prepared and And at response efficacy, and have

really the allows are specifically for can fibromyalgia and in as us we year. pharmaceutical look approval that products soon as our we the as as hammer this into on a products NHS with to with to forward begin So study early FDA this end market or get really to -- patients, of

So we're definitely motion. in

Thanks in Kirk impact business? of MKM. so Annabelle. Difficulty] last the a our Colombian you little potential bit much election Bill to questions that Dr. will Luis, can have [Technical comment come on The from any may

Yes.

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comment question, last margins a outlook your Can this on XXXX? just quick gross in we’ll And for here. you give end

Yeah.

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Growth We appreciate and joining. call. the That you. everyone Flora the with issues concludes some Thank of thank for everyone again technical dealing