Flora Growth (FLGC) 16 Aug 222022 Q2 Earnings call transcript

Thank you all for joining today, Flora’s First Half 2022 Call.

We are going to get started here in just another minute as we wait for a few more attendees to come in. Alright, welcome everybody. Welcome to the Flora Growth 2022 Conference Call. My name is Jessie Casner, I am the Chief Marketing Officer at Flora. call for to end viewing meeting. conference will recorded of this published be shortly note is be going and this Please after the

the provided and Q&A a in the will can Following instructions questions Q&A function remarks, will begins. Further All be submit chat session. the participants conduct the via webcast. formal initial as question-and-answer we

Luis Board. On the of Executive the Officer Chief call with Merchan, me and President, today are Chairman

have Jason Commercial Chief We Officer. Warnock,

a half Lead Manalo-Morgan, of and earnings contain Today, Member our disseminated XF Relations X may were first those which be the and and call, management’s XX, like of and discussing XXXX. for We Scientific have XXXX and Financial Garayev. afternoon, of This Advisor newly filed Board may with remarks management Elshad the financial Likewise, Dr. statements we under forward-looking Chief Investor found of additional Form risks the I’d during to EDGAR. the statements are to in our appointed subject forward-looking Annabelle uncertainties. subject the on risks ended of SEC June unaudited our we months release. the Copies and our our be results that Officer, the cover the also make for you remind Q&A statements on can section both are during session, to which uncertainties. prepared website will

shouldn’t therefore and reliance performance be upon future guarantee undue don’t statements them. placed Forward-looking

margin, on the The circumstances no XX-F publicly filed except in please EBITDA or or differ Growth, required Officer maybe forward-looking my it financial which IFRS is For non-IFRS see results. introduce its Form made, time, from today, Luis? the update EBITDA the expenses and pleasure statements cause certain events as and reflect during measurements to will adjusted such actual presentation SEC President, under excludes Board, of any Luis please And made detailed securities our results call to on or from description of future law. materially obligation Executive Chairman May business refer adjusted company applicable the they to factors statements financial as note the correct this Chief could finally, XXXX. to that our management the to undertakes X, At with forward-looking Flora Merchan. Flora

have our successful Thank for XXXX to earnings to am you, report time first Hello, We very here have I we to us. Welcome call. be appreciate first a Jessie everyone. half. taken all excited introduction. had the you to the with that you half

are period Our over XXX% same sales up the last year.

Our gross the expect for the year revenues over XXX% increased for we full reiterating last full that period our and XXX% between and our grow profit XXXX to guidance. XXX% same year year

the compounding and in all The dollar, business that balance this the is of inflation, fear broader in disruptions the chain pandemic dynamics have cannabis have effects supply for have of we challenging been both the of equity lagged the the of and market and effects market seen, sector As U.S. make many businesses. value today. times evaluate that continue ensure are it challenging every make improve we progress. still performance their correct In backdrop, growth critical significant profitability. realized to Flora carefully Despite decision this, like and to being units we

regulatory dry coming from and Pro-Cannabis in During flower discussed movements Colombia, build-out quota from Brands, the the revenue clear medicine our be fully Colombian three of of into full been growth government. have have and facility pillars: In a sciences. CPG and pillars business. first the our is received focus categorized our trials This pursuing coupled XX addition the cultivation business these growth the our a the We of life brand government strategy. X with in strategy the meant through has XXXX, on a potential Colombia in as high the clinical of Administration, and House operations. half saw our in of tremendous including the export exports, will positive developed the Each JustCBD realizing healthcare. life strategy wholesale, discipline, half of updated of news the for our acquired THC covered presentation. for year pillar, These a the sponsored fully first we our ton leading the UK. we finalized of cannabis This first year, later immensely election have XXXX sciences is we proven integrated cannabis including and to company in And months operational generating of of a be has legalization commercial for of

these while supply All been financial global it this, and Garayev. networks. to Officer, chain review With reached I’ll distribution we of simultaneously have that, performance. for Financial hand our new milestones building Chief Elshad Flora’s And will over

$XX.X half the XXX% at This for and represents increase for the year XXXX. second half ‘XX of versus last of Revenue million. period came Luis. than doubled same the you, Thank first over in more an

of $XX of coming XX% was X approximately profit sit from outside months to months JustCBD and white other profiles Revenue Vessel. operations, reduced focus our $X driven XXXX, compared predominantly through X of JustCBD the X revenue Lab category. from full of from XXX% and and to million, attributed including Flora brands by Flora So, XXXX. of XXX% contribution label food and of compared on higher low Vessel Lab revenue contributed margin expect as months. first our market increased of to half the back of inventory sell revenue at made and tilt American decision to the margin the half Inventories to This of emphasize brands development North requiring to new a most penetration gross overall we in Florida Gross XXXX. half for now the up lines, million, business which the second was tactical its

of the activities fees, and and business million Vessel. our with higher through consulting, JustCBD X of $XX.X Due while that they share-based totaled profit second higher expected external some a compensation, to gross blended of based and market Vessel payroll, Subsequently, fees, of one-time impairment of down resulting in items first fees million of contractions and gross X.X%, of in in investment impairment second the Other management G&A, promotional expense decline first use XXXX. a one-time write-down expenses due the are Hoshi first items valuations $XX.X investment a half the including remain discount acquisition forces impairment as in to $X.X in on which $X.X million over XXX% Related profit half and million supported revenue half in one-time expenses the non-cash promotion to JustCBD similar in expenses, of increased only half Flora despite of and driven rate XXXX. the acquisition by of were the XX%, many goodwill million items non-cash we half out X with EBITDA valuations. doubling items would $X.X climbing included nature items. continue loss charge. This market Vessel, XXXX our of recognize predominantly sector year. brands first Hoshi on associated million an of and of and and to household the integration XX%. as Operating $XX million the of promotional steep as half professional for the in Lab’s Backing Our the XXXX had is in $X.X expense control included management of increased and well costs are of XX%. write-downs to resulted in the operating the a up the compared an the in to of our consulting adjusted

to continue EBITDA adjusted expect improving We forward. going

definition to XX, shares SEC. on announced our Flora a in first in make our repurchase made EPS as please out of rules adjusted accordance to a loss opportunistically million shares Flora second Exchange. June non-IFRS of an we was half has resulting full of in an buyback XXXX. first compared and and aggregate million refer currently with had of the Directors commenced On and measure, repurchased $X.X outstanding, half Subsequent XX.X Net million For $XX.X half of the with $X.XX. loss $XX.X that July. the NASDAQ EBITDA today for filing up XX, has set XXXX million to of program half million. purchases June Board XXX,XXX the share by SEC $X which to of authorized company the for

$XX.X our with Vessel, from QX to of of the build this launch $XX new sheet, XXXX Cash raised $XX.X JustCBD. cash $XX.X million June JustCBD was million of Cash additional that remains November XX, as of the series from well Company was secondary inventory cash XXXX change million for end be was to offering from to debt-free. in to million, Turning of products XXXX. year used acquire balance utilized as launched year. to brands also on

look exited a our are and Given all for broader operating period no have to our note I to entering It’s we to reach from the back discuss the and projects. of investment sales year condition year. completed important without half second execution. continued along highlights. to manage commercial position, cash of remaining tactical We lab growth major injection. with We’ll to our believe we beginning positive we led made a market cannabis we a to capital objectives growth streamlined liquidity Colombian in diligently forward increase will turn have profitability, the House to and strong expenses delivering We shortly, nearly in made we With cultivation we our cash Brands, of operations. already that cash next need our our flow Luis our CapEx by for capital period burn. now anticipated operational decision lower sales of

Thank you, Elshad.

in half year, of we capital expanding to first products. our XXX,XXX portfolio number points the footprint. customers also a in our on the acquisition addition addition notably, operational instantly we financial In in the were JustCBD. of of a focused XX,XXX and first of to distribution and of global which access results, milestones accomplished This robust human investment in major us acquired XXX% half provided to Most many of

offering. of formulations our life acquisition patent Masaya. boasts pending Another the brand, Masaya high-potency CBD will and was sciences science-backed expand

that through levels looking accretive just Moving nature, well. will opportunities. forward, we opportunities as continued are from but through expand M&A in growth capital and not organic capabilities to consolidation perspective, always and our a for the are in industry, continue human With Flora financial evaluate

via Chief Following as acquisition. our James we company appointed Strategy both Officer, of Vessel, Jessie Casner joined our as the Officer and having acquisition Marketing Choe XXXX Chief

Vessel additionally, have market listing Czech partnerships. purchased in Kong. And in Mexico Konigsberg, Brandon President Amazon We executive; of UK office Flora increased approval serves Republic MIND now we Directors, who appointed new as also Cannabis, as our secured senior former country Bucaramanga, Colombia, through JPMorgan stores, include our facilities of of grown Throughout distribution extraction flower reorganized its facility, year, Flora producing presence team, including in Bucaramanga; launched all at our distribution in we of onsite To our laboratory year. our Germany and processing outdoor this we Flora X, of extraction operation. securing In outdoor London. this footprint have former center distillate the portfolio. we Vice Canada now cannabis our Lab products its Lauderdale, other cannabis our Florida’s partnership Chief and Fort Flora our using processing our facility located on Florida; topicals, isolates GMP and the and X, business Florida which cannabis May and Growth in build-out and in X, of Elshad can distribution Regulatory Naturals Leafly Flora’s former Lab cannabis securing completed half facility Lab which non-cannabis in line, an penetration farm European cultivation facility a Board CEO also Opening direct-to-consumer in Bell now for Holly hand Flora and Amazon and and in expanded appointed derivatives for Officer. a Hong Lab a edibles brick-and-mortar will on over Leslie, we Garayev, and include over-the-counter also on and cannabis expanded for Bogota; the to Colombia. be and leadership for lab Chief to phytotherapeutics of transformation to our our formulations Director multi-country members Warnock agreements it elaborate custom Internationally, the Affairs Florida executive Team Commercial Bogota, have infrastructure. from which and our Officer, Chase. Jason prescriptions for and JustCBD by first X, international cultivation Financial I now in lab

Again, Good afternoon. good Thank afternoon, you, everyone. Luis.

license gotten cultivation for off our great has Colombia. mentioned, facility operation XXXX XXX-hectare Bucaramanga, and to has start Luis As a in

realized infrastructure of state-of-the-art facilities the truly this While build-out until first we for the time, of year. wasn’t there have had the some half complete

expertise Additionally, as to handle CBD fully a necessary we the XX-ton quota able THC facility as well there. and our people functional scale to cultivation cultivate high full products the

now in product – prohibited coming technically hectares year. plant, well date the time are quotations, April flower several and growing at very online, and psychoactive hectares X as in are in year, to global say I of government As to that psychoactive plants advantageous as THC high isolate use course, meant are afforded us before cannabis flower it cannabis, this being export given leveraging to milestones Lab non-psychoactive back Subsequently, pertains there, lot commercial framework put channel this quota our been chain. first the harvests takes cultivator from X, Flora in saw own facility ground. of of fully process were has nature for Flora’s the method are but from delays of of our are we we CBD well beginning newly being Today, perpetual any able checklist, the and of the place of of the achieved, plants am of THC to regulatory so distillate August flower X for passage Through ability to we proud we revenues we could to supply X and because pull high as realizing to as the month as happy put and now extracting issued of the the of both the dry geo the regulations proper grow and our products the say harvesting the of export high specifically it ground many our now the the to export a well location. expect regulatory

currently and kilograms to X well facility well Our the positioning has per process capacity to as demands. Flora current us the Lab month future extract X,XXX meet as

now exports coming Australia process Israel, the to and months. U.S., and begun the in have of export the We commercial activities continued Germany

to been team so full a as Our Flora has this activation to ability to full partnership – regulatory well of partners. quickly testament our channel as with realize tight the

cost chain also into Lab additionally white they the product only production management. solutions and creation Flora’s finished supply to to cosmetics, in holds of in of which located offering three in chain operations phytotherapeutics supplements, serve provide product our States every integration farm, as beyond. respectively. portfolio third-parties and business of X the Lab for includes certifications, and our The as broader the Beyond consumable in formulation commercial market via stable Lauderdale and value and offering step, GMP Floor Fort terms Floor Flora supports critical resource Labs compounding X these to white Flora positioning label while supply X, dietary label Colombia well grow three goods the Flora as Bogota, well within the labs the X provides United at a capabilities. not

is label like to and drive Additionally, business locations our Jessie Chief Officer beyond. House Brands. to projected revenues and I white in through Marketing it to over both to now XXXX of the discuss would pass grow Casner,

Thanks, of Since a promise. part brand has Flora its collective Jason. the inception, a been

the distribution to because means on infrastructure can us offering. derivatives, House and advance market regardless Naturals, of enter Mind regions house our the revenue based cannabis future. in were a Flora’s a is This in multiple truly chains the allow us first diversity since of realized we own skincare value for way. nearly Flora us revenues base then, any that status now its plant customer affording movement of XXXX. generating Brands realized through delivering legal the experience The begin has product build of our that regulations cannabis or being In better to grown Flora of in target its supply unique to And of Brands fact, each by line. in of networks brands, positions

revenue company and with provide begin our and fast up. Additionally, with to ramp businesses other wholesale meaningful direct-to-consumer times healthy the as lead commensurate margins pillars

expect of being strategy You majority X year, from sales contribution of our products The we first revenue this driven half with we the than can assets, was see roughly revenues XX Vessel. end expand grow of more we these market the the XXXX Brands and half JustCBD by roughly number percentage as X% this the year. of from to this exponentially to division, as life to attributed nascent this and come markets. in were countries by penetration countries of international total XX% new Flora In in to revenue deploy of the acquired House into first

the units, we and first sales cross-brand half, of of As integration. identified a in and We acquired business newly a part perspective. implementing full intently realizing on focused the potential our from began operations synergies

will We core revenue well continue combine advantage company’s to given location generating through product. operations single cross-selling efficiencies competencies shipping of have co-branded amplifying via and distribution and opportunities and warehousing as as channel logistics take and each

integration In first saw the across product activities, addition half all launches to category brands. new and expansion

of of to novel in products. the greater line to has represents Vessel and big the category access primarily JustCBD skincare retail retail a by higher to accessories increase formulated or half, line, will evolved proprietary also to and sneakers all. in apparel loungewear offering sales of the expect Mind line offering This into and brands both and no CBD meet box in increase expanded and adoption but relationships entry the driven and roots of and promising. about to market at blends so market expect XX% in its impacts skincare, products shopping, brought shop line, and the to its preparation QX category where previously QX, which saw to into position barriers alternative launched growth which that non-cannabinoid-based seek expand of overall to provide capture global brand CBD cannabinoids America. infused its continued JustCBD’s some year, share new to continues Mom alternative we concepted to dry first inventory the holiday portfolio our for and sustainable industry. with in food expand slowdowns. it its increased we quarter-over-quarter demands future. vape markets address hyper XX% hemp-based significantly for its offering will in consumables of have cannabinoid channel really and revenue sales herb and untapped to all the in challenges has its a new expand have half Stardog, beverage back the to demands line $X.X chain of the supply where the In our the of to the we South we mitigate market order given of potential Bay, smoke million

majority to to of this the expect before the cash convert We inventory year. end of the

Now believe among there to opportunity better plant-based an still brands, of we address is segments the all market. of these

of the And alternative a brand. wellness drinks year, and ready-to-mix half Lamborghini brands brand and plant-based a incubated brought supplements will Tonino dietary such see internally the as so you beverages, back in CBD the new market to featuring cannabinoid

of to be fast continue portfolio, in our brand we and we As double down successes. our fail our on disciplined we curation

products the have company. Discontinued to rolled to the order business long-term support brands into often As white portfolio viability to within of are or this or products chosen a in better commitment, we of label sunset part offerings. business the

we Sciences. update it provide pillar progress pathway We our meaningful Brands global revenue us House pleased Alright. will of to Annabelle over of and expansion. achieved drive this to now Life Dr. to with to the in the to-date continue on performance I pass a to and expect are

Thank you, Jessie.

is Sciences milestones. we strategy. have that newest program, major growth the our working to have three the Life development been And our achieved on and Our in formulation pillar time short research we

the submission with preclinical partnership UK clinical our trials in final Manchester data our moved from for Service. University await and protocol and First, now we in approval Health of taking have National research place the we through assertively the

trials to be before end expect the We year. these of the and in-patient start

have Second, brand, science-backed potency high acquired Masaya. we CBD

well Flora to UK. and We announce Colombia other provides in submitted in milestone been Masaya also a are access and as brand both covered Lab the in pleased this product will cannabis to Colombia, clinical And to prescription our custom These the original our providers. it to you, are the licensed access I’ll Colombian Thank domestic insurance required of updated our trial pillar. promise all formulation the be has of Masaya the grade clinical X. consumer better makes formulation for pass which this plant-based which a medicines breaking third achievements this around Sciences medicines in division And Life be health lab claims-based formulate ground the deliver Bogota, Luis. use position In on Flora to lab, back to you. path distribution, and known cornerstone global we as compelling finally, to all to was by world. product the of of

Thank you, Annabelle. Dr.

Before volatility I macro I of am continue portion executed the we everyone strategy. to and year. today’s the – proud attending capital XXXX to in to attending of formative markets first the been open aforementioned sector, in again of growing the has XXXX the call, challenges of this and our be cannabis call. thank will for up this a year for we want this Despite have the headwinds, some half how Q&A

our in way fiscal responsibility cash returns, deployed us We resources class operators while growth. in talent expanded have leaders and reach. steadfast bench been with of continued and having our creates for world while strategically broadening positioning that We global our simultaneously our a

and commercial development. which been until cultivation point invest necessary of We pillar, continue in to this infrastructure the had in up our

globe. of are derived now investment actively XXXX the second this half and value We the we companies able realize cannabis one And of activation of to the XXXX. with moving into that the products pillar, a into who only handful are heading across of are now of

as that to relationships in build around expect in continue the increase substantially goods governments the months the agencies with flow regulatory coming of world. We we to

propositions experience of House leadership building Brands highlights and distribution. Our our the product value our of of greatest brand in pillar one given team

We our we grown to are world to high beginning of unlock full And customers the have SKUs in bestselling customer and and offer experiences. better Brands impact plant-based just continue potential new of and drug around to Sciences, cannabis the House in segments Life research development. seeking

are U.S. have we file while note away to today financial be I regulatory and a landscape faster keeping financial statements than I of all most of based the classified do not financial our do new a researchers. this disciplines. although move – our SEC by Even commensurate and outlays understand been dedication we focus on which standpoint, team our To product one achievements, company, our cash Navigating is will is still on of continue optimizing private the elements We believe with able of as yet domestic supply so, to a more foreign our of as there from on globally. being that to these to this the markets seen and we a efficiently chain with the issuer. pathways we most new we operating timeline fellow with and distribution expenses much in testament a required point, that financial is our to space, done. and work left From global challenging for networks forge create

our for shareholders, growth our $XX to advantage the with we of as we begin of reiterating Board Directors strong sincere half XXXX. Jessie? back beyond. the our the continue And customers, XXXX call. guidance and portion revenue I to will are our A the Q&A position such, million and confident our to before our our through team. and take opportunity us. you to thank Flora And of our $XX entire of current of that, in ability expect We million am

[Operator M&A Luis. with for strategy? you, begin you to is Luis, Can Instructions] Thank everyone? our So reiterate that what

cash number highlighted access is duration of during a markets, to are and to have capabilities. capital With the the consolidation. This or is we to human that many there opportunities some going the or amplify for there period resources the have through our industry to the call access the out a of companies us to distribution amplify being reasons, reach. companies wanting help that for said, have capital could our inability the happening Yes, on that that

opportunities. will EBITDA emphasis certainly We revenue going are play and companies that on stronger to going positive forward, So a companies types positive M&A sheet those balance evaluate generating we will as Flora over are continue a are capital strengthen position. also to and and enhance of cash for our potential capabilities again once our companies short-term. realizing financial for that our human our But looking performance the flow

end required apologies year? question, Thank raise One mispronouncing we you are at to am [indiscernible], the is you. the money have this the I from of if anything, as cash balance only million $XX

not. are We

we I – and complement company a highlight As with no will we debt. important the Elshad It’s this, to our with call current has current have to to profitability path allow on the that the highlighted structure.

positive reduce capital. become of having early expect additional over any expect next this we our the today, So cash to flow Elshad? raise significantly cash without year to to and year we second burn half

Yes, that. Luis. you, Thank I complement can

cash manage diligently. We will our reduce costs. This and our to continue include optimize will corporate to initiatives our

our As we noted, completed we already capital all expenses.

see capital minimum investment. will we So, very

the of debt-free focusing position capturing half year. second optimizing burn We turning revenue, should on as to inventory cash, synergies, us which significantly cash our to maintain as altogether will this our reduce for well on be allow

color this Can Marla. you is of Can provide – much. priorities you in very you from on terms growth near-term Thank and operations? consolidating

incorporate integrating standpoint, we stands. that generation And revenue more an as the true opportunity to the a a in and year contribution seen as short opportunities, well this and consolidation and office have to markets give very the pillars, than teams our terms activation will restrictive about as I synergistic these Dr. very of Vessel. investments we as fully terms synergies those to amplify the speak of from of and From Jason JustCBD today X we San just approach. of and of realize From start. less pace and to JustCBD opportunities second will be an start a we opening starting ago. a speaking commercial continue but and and But been we Yes. growth cultivation to Annabelle. the going And realizing on Brands and excited of opportunity important potential tried regulatory team am two channel. framework House Vessel have ago year. enter other acquisitions this balanced over wholesale you we synergies and infrastructure the And for It’s have rapid of to able going it’s excited made But revenue our Diego of with a I over very said, am that months in our we to long-term. the perspective, revenue CPG as highlight we acquired is have products at local Vessel year. that proven are I our where fully are and over are up half less there, contribution to

activation Flora talk that So consumer of Jason about a channels and to I Lab am going to little the X. to pass bit

Luis. you, Thank Thanks.

to sort flower in so any to much silos expand did it Colombia is Flora’s was based so – from derivative Flora any conversation. was not on export until I original of this think it much entirely year. to I good legal it’s April of hard X – as operate maybe sometimes products quota the we Lab

the cannabis under during passed as previous to the to fair, export and to, that the as this begin before for for Flora’s derivatives once flower we used were the the time cultivating looking and are majority by those be Only be is markets, the quota able to German done markets well still XXX% law the planting that year, quota exported that where of be we export. are primarily flower. Australian actually would was the And flower, world in terms. the still to for So able we Israeli markets, so

cultivating specifically when April is which for Flora products intended in around open been flower, us cannabis now. and a began CBD that’s derivative X for So totally cultivating this to strains the world. had other market point to Only different is markets high we

European X% X, those move and tailored of North to much genetics move So fit markets, in to that types, lower, THC to to change for is our markets higher want on been now we others have for THC markets, that our are many to there some categories. alluded And different to caps able up different genetics American for as flower. the are Luis April with we markets some where CBDs, again, those certain all there

any online, So, in Colombia cannabis to is now. just just cultivator until wasn’t because this for flower now legal all export it coming

Yes.

pillar. division X, course, excited I Sciences Life around albeit grade derivatives will are summarize the about small, Life we perhaps are Lab about very, the that we our activating just to Sciences dry So of the Dr. pharmaceutical of very the will and provide cannabis initiation contribution be Flora of that of out initiation but the but exports in of are very the comments space exports will some also potential enthusiastic have of Annabelle as our flower, we

a sure. Warnock first true, that is colleague, the ever the credibility see it’s for pharmaceutical prescriptions. cannabis who able I’d lot preclinical always we Jason you, Sciences cannabis to time actually of it’s voided quote pillar especially of medical first product hands the a says, And its is something providers create so Luis. medical where gives you Life our to been side to Yes, move into completely be to like what done. has my are the in to Thank with be and doing time in into able out

doing that we medicine. that so put market we are to put products behind the actually We claims doing we as can what are

now, market really right lot comes it don’t you medicine. products that course, a lot of of a on the get Of guidance when to

So, trials we doing its the clinical kind. are the that of first are

We are Manchester. did within with X the months University of is work able the that all complete. We to partner preclinical all

take X anywhere in animal million. know and $XX years from to XX that cell in So, that’s if world can studies, usually you metadata over cost studies, that analysis,

the and are some providers. But by of excited all that is hands we FDA by to essentially really medical we year. So this taking by in United the also insurance heads end in Kingdom. advantage do the of It’s have cannabis which are the in NHS, in been of Colombia X that fact the about doing we able it patients to paid months the of health and be be for we that can turning expect

only. also So, conditions custom different lab will be formulations we products a have as targeting had mentioned that for and prescription different called FL I Flora based we six six are

truly due in doing really time gap Thanks. way. on so cannabis that light are and put that space we the medical the right taking So is to filling diligence shedding that map our on the we the cannabis are

Thank you, Dr. Annabelle.

Okay.

Gray would exporting to a or the you coming Can to from you on be and whether Aaron question in flower this are months. to you Australia extract how Moving and AGP, from Germany, Israel speak if be progressing shed that of little on bit a levels helpful? terms Jason, and touched THC being more you you in cultivation like I a flower think this, could just achieved? but would little mentioned bit

Excellent. Sure.

those as most our the our said, products. many products of take truth product different go are certifications, both drive many, is, our But So can category input. can for of well as nations that licensing looking that JCP actually of into as we current markets with

predominantly you well, X flower, that most as distillates used if because our to different integration, we with supply touch of be our areas of we within be vertical most to will, So that Lab ecosystem. chain, many our isolates you production, will internal Flora our convert are so and within honest

flower. and short-term markets continuously in be most looking markets, towards in are certainly whether continue Germany we we are Primarily that So produce of of and at other internal There we are to what on are the said, daily update that that Australia, directed certain exports Israel, is like towards our those can focus distillates today our for that’s I isolates. or segments most mostly on flower.

reaching different more like than as different that are specific for we up categories our see well can Israel the Certainly, have of as have markets. into genetics ones high XXs genetics We XX.X%.

So that go there deal is some a that are specific to great beyond markets others that. and

bit of we supply timing and and and and And for have Great. mix potential Jason. strains think some THC genetics but far you Can and to products? particular as revenue insights agreements our strains ROTH. helpful? sell the you, of color at look Scott Thank and a Colombian as Europe, into be quality the global little on I A genetics color similar into new additional provide from question, now one THC here distribution grow Fortune would

I – start, Jason, complement. start let will to I allow with you will me

strains that high-CBD of of X on call, think XXX-hectare X our of hectares reiterate delivered of facility. high-THC The are THC them strains. messages the we are non-THC growing our have for we So in we agreements currently have are the of today cultivation we product to to exceptionally started them some have I this clients of both already high. we the And have land X and some demand licensed and beyond. that Europe strains, are on that is shipment

It from like get for to takes timing that is getting being delivery ship XX the time. was shipments parts narcotics to days regulatory fund it obviously to meaning the other in some time move all as products being the an Colombia is getting to time days for from from those to F&E that done the the call, ability your And and the expect the to first shipment, are Now, mentioned generated also in XX these time. world to the that then time some we first approval order over first one which takes from optimize being evaluates done the approvals. move of that

strains In are – I highlight to our terms like of that are current in genetics, development. being ones the currently would Jason that and

strains on. mentioned is them nearly of X% think So I of like CBD strains yes, in currently I earlier, in one cultivation and for is to well. can of focused that in so Both two lower harvest, up there THC a – CBD high-THC two a we choice isolates, And sure that’s we to from derivatives bit order our again strains markets. make as just better all little one obviously one and and are accommodate

that don’t then under our XX%, so we all target any we THC, the initial it And strains THC So, strains. Israeli which through we doing working this when year, of that remediation. are our Australian comes already the are later we have have market ones can balanced and is to to targeted and

XX%, German as other fourth like upwards one and very one markets. XX we to more of and So, by the well which as and targeted high-THC a All strains a XX went the for quarter.

being harvested quarter strains be mentioned. by fourth the last are I the now So would the two ones other

to range the into be follow-on a from meaning from And question Vessel, coming thank a $XX broad million XXXX provide would and guidance on what the more on little a Scott, light range? JustCBD mix and can Great, U.S. you. color you this is the CBD little from $XX million factoring of that

House think from which are we that to in directly variability start our coming XX% operate the complement. highlighted first I the a in is that industry of that will from Vessel. related brands approximately of and I’ll two are call I portfolio Yes, to we and Elshad the off, revenues Brands then have the our range top Well, JustCBD broad and

contribution reasons Jason derivatives in the export dried first half the export expect to are Elshad? starting from for to wholesale contribution going to the on commercial certainly So, half. and second over derivative that the significantly that be to due the as smaller is we We explained. is flower side albeit the improve

Yes, that X%. I definitely can see change we currently XX%, is compliment and some percentage would XX% which

we revenue. a like House somewhere on XX% of guidance. would But Brands are time, accelerate as I definitely we think a operation strong This to we again, range. providing we for to will cultivation, same XX% Life revenues see build we that our up to the coming Sciences our – new stay can is depending capabilities contribution want percentage definitely that see operationalization as At of I not the we those down performer.

to both bottom top and line. delivering the still it’s So,

proposal guys. your are Great. Thank likelihood from recreational approval Colombia? CBD-Intel. from of the And you this What of Williams cannabis thoughts in Adam on the question legislative comes the

is – recreational for very regarding sale of It’s small law has a makes that the contents affected no Gustavo more aboriginal cannabis discussions laws likely. also Senator author as And been to companies sales support to been Colombia. of have of communities the it support Colombia. been is the well the of tremendous adult-use disproportionately amount Colombia. legalize multiple law. for in will war of that on not than encourage The drugs. relief the the provide and affected the that these in And for some bill. to purpose I’ve country social Bolivar there only is as is Senator by specifically medium with And communities

is of the the We President firmly going belongs part elected in that strongly to was their pass. they majority first of going passed XXX to he swiftly. it we Congress to newly today. days will be he is agenda believe who hold party So feel law Petro and the Senator Bolivar, and get pretty

great news. That’s

a number this We have of question people. received from

Flora does when turnaround? price expect So stock the to

will Well, question. I fundamentals you continue thank for we well to the execute highlight of Yes. on business. that operated will a

of important our and call. I highlight so at to end it’s the did think I

improve and this to basis. on on Our excellence, the reflective fact and discipline It’s weekly financial our the daily operational timing on reporting. continues of a

we company. with in over ensure We the investors a more appropriately that price as improvements they We developing is going based are that are likely of reporters we the and U.S. buy proud the that appreciate. profitability us are that they are will information of the will they consistent, that And we and strategy and inline such stock a to to sound making. informed our company holding like in expect short-term, will accurate invest believe turn, are hold Elshad? and is give share take a certainly receive be as that to to that to today, investors will continue

add. let me Yes,

obviously systematic exposed to As we you all are risk. know,

to to exogenous risks exposed factors control. our capital beyond are We

focusing ourselves value which allows ultimately us sector, of terms aim to acquired our our customer, within be operational in shareholder to integrate to to performer our in However, units we like and on ability best long-term. amplify execution, would on group, newly

our difficult that’s in ourselves during cost execution, be market, focusing to we to to operational even delivering shareholders. So, will results, times we are which on positioning way promised again, this order in management our which exposure we the our minimize

comes This you. Thank from Fantastic. Steve Silver.

allocation You for CapEx for any there mentioned major requiring envisioned Are XXXX. XXXX? its or completed projects that Flora has capital

of we out that deployed Flora The our fully X there period time, presentation. majority portion our facility them, into are we to of that a the But this is very expenditures. her investments being build the Dr. Lab mentioned execution. of are at utilized small very, some Not of Annabelle capital finalize have during moving

based the the to couple We highlight we that next that over are made have that realizing we the is couple of years. we line investments investments see the to It important machine over last have made with expect and years. of strategically in demand

reconsider our projects major So, see own if next our we resources will demand of But or we then into any CapEx revenue more not today, and months, accelerates XX dramatically XXXX. based any over CapEx as on project current the budget. deploying projections, are

I much. so apologize. don’t micro processors the I it it’s anonymous, name. like cultivators here, very Will have in Colombia? or with from be looks working any you Thank Okay. One you question

are but licensed transform those we reap communities the wants cannabis we so. is we other flower product [indiscernible] to have native we native are. release help And community, by department These benefits her is is incredible led export are called are war for and an do that the is They located has impacted internationally, in her meaningful once small to communities Kalka, Colombia. a move to native countries which, been that dramatically that develop into Colombia by a industry. also woman the which again, of on been that forward, to a with a cannabis. of community, growing drugs. at, cultivators of highlight entrepreneur a important just has largest And press certainly [indiscernible], community. the is it’s in pathway And tribe highlighted we of economic that to Yes, experts holder, flower couple going Misak partnership months We portfolio, have announced in there. the which don’t the capabilities currently, ago course, to community Misak believe The and her signed a Colombia, that which

you. Thank Great.

top a the looks facing from question, but couple or one challenges like across back seen and of I XXXX? you year that it’s it maybe the Flora see you highlight Can half Another anonymous, up pop times. two the three of have this into

Sure.

ago. We a Regulatory that is just Holly was months and for State couple have for to – she since over head will VP of she Bell – going the our it Florida again, I cannabis Once the I of Holly to Affairs. joined pass us the highlight am of of

So Holly, you question answer that to for us? would care

for Can please? me, you repeat the question

back challenges maybe see that into the Yes. half What or you are three XXXX across the Flora XXXX? two of facing top

we it the dramatic regulatory be can’t changes Certainly, predict. in that would environment

into session. see that that’s coming. would But be of the our challenge kind on elected officials as again, the anything don’t biggest I get so And see horizon. would I unpredictable

are various do Thank I is with do will this, on exports yes, become, to The complex. alleviate. regulatory, you, products That’s globe. start there second these of so what and our have it. absolutely. between have that and take supply And chain a how of trade. for going even freight supply one think I of and Number to organizations included And organizations to from those they to eight cannabis, flower as they difference which there. the then across there out And big our revenue the now into certainly we is cannabis And exports some from dry that Holly. these into we to comfortable time. but challenges. logistics We with seeing Yes. cannabis and take we There countries going financial willing is time implemented, of Colombia even derivatives today. chain experiencing for been that other government projections, And is have driven. are is only Depending or some entities regulatory extremely agencies are changes going handful are projections it’s work with a complement our forwarders risk a is meaningful operators say that elected companies certainly hesitancy the that risk also that seen become comfortable level cannabis time to one officials the control in that are they

Luis, one that? more thing can I to add

Sure.

it this some doing you things we is, for touched are see anytime on for will the One presents first and takes time. Luis doing that we this process and it time and challenges. is of the something are This time, first the a

at growth. very We Flora effectively. are But have personally out great relationships that approach, our to we how our and due experienced that do proactive to figuring

Chuck don’t Great. sure Thank have too is the question fast A you process from Wolf, you what make you. grow the in necessary and place you stabilize? to existing with here that allow infrastructure to growth

that that means speed very will start, you based those growing terms are over delivery in of operation of not is Yes. of – in but the that careful it market, short-term over being we plant. I to and compromise demand

waste hundreds We being inventories North to America, have and in inside down in seen going specifically Canada tons of what marked has inclusive happened of burnt or being Colombia.

the So, we we over fulfill expecting only are that the on to growing based demand short-term. are

able are those we to going be time Jason? our grow, predictable, our those orders. optimize well As to the chain become then optimize to more supply continues as for for as delivery to

will it, a that’s say I just put way to great Luis.

where forecasting XXXX. I to be very cognizant or be of demand-supply are think where is will that demand continued into our today, we we and

just capacity the it that. have ability dramatically. because exercise we there, We expand should mean the and But to doesn’t it’s

commensurate the domestically to are to vertical countries as well demand mentioned, begin Luis’ future supply and some demand. opening, we that that So, within our and around like of to start Holly cognizant with companies challenges, we kind it both increased of regulatory and as to have larger chain, meet the these as doubt unlocking no very building support of world point, will infrastructure, I production. increase

Great. Thank you.

Another from question AGP. at here Aaron

Can the sales to sales you be spoke synergies we synergies you on color provide acquisitions, realized? the where these channel might see on they particularly channel following So, synergies. when and

be of that today. from a highlight. distributor. that number JustCBD global that to Yes. of is They started acquire company internationally. revenue is to a one the examples wanted generation are There be a starting We accelerating we positioned to capabilities That can realized is

distributions will revenue to international specifically sales approximately X% increase that amplified starting contribution the I think We that is Jessie are Union. channels, mentioned And in European in just from dramatically. those contribution revenue

launch. came also from of We and traditionally over bread XX% is – brand, revenues DTC are retail, which channel launched a channel, Vessel we to was And which from had our wholesale growth that seeing butter of direct-to-consumer significant [indiscernible] is JustCBD. which brand channel been the

also We fulfilling amplify are synergies attached the go via channels. to – channel sales. and way chain channel going our on distribution be those of current But to supply They both to we continue consumers. revenue are the the for contribution beyond

West and Coast Coast East both leveraging are warehouses. We

We in of from identifying what allows go market those of it the in with we are consumer brands opportunities the because starting happening synergies and and reach that And is major on able are here that developing opportunities sentiment to realize us wider our from a whitespace is are out to we intelligence to understand the innovation, what launched product there, mark space acquisitions. that to terms are half, also brands. have we both based will global the the of the fact we and be that second garnering

Great. Couldn’t have myself. better said it

minutes We have couple of just here. a

Joey This in am stores plans I get direct there markets? thoughts So, U.S. from try or stores Are going [ph]. more that be Florida specific? and comes through Hasan brick mortar any I questions. opening would two one think to the and in

Yes.

entire our our And entire entire consumers, to consumers will was mainstream that which into now The used a our we startup more that will our is In provide pop-up, to currently store product of a access be to concept a store development are clothing concept highlight working Miami. our brand, was portfolio. is fact, portfolio store location brand, for on this in morphing hemp to brands.

It to needs that as the as we We there reception be need this number. successful format is investment, pilot evaluate is a terms cautious going are then in of to of if this understand good to will on we type format. scale need a and we

that We start Miami, Florida. Wynwood with in going in are location to one

Thank you.

But come last questions I sort of the a fairly few Okay. straightforward. through. and question is seen are think The amalgamation have clear I an of pillars growth

sciences. We we Brands, have commercial life we our of wholesale, have our House have our

of consumables products? grade in portfolio does look at see growth whether so the happening or be its where that commercial, you or operation, hardware Flora or category pharmaceuticals broader prescription most As

But going timeline. matter of team am I portions of to allow this to answer my it’s question. a

very in with invest House because to portfolio. why short-term, Brands And are I They meaningful over than portions point have a the connection this lower They allows it profitability. a and and we the of of is control and allow clear us a other we us high path it we a have there communities. to profile. have two customers think the to own a margin at our Brands have framework are strategy. – we reason our regulatory they destiny

trade understated. course, to in done it’s been of we meaningful global able and to revenues accelerate dry have we that M&A Almost flour. have strategy. both that meaningful For – and The XX% cannabis organic And be reason, exponential are able of paired the growth. with of is potential a flower dry cannot

to dry export starting just flower. are We

quality And cannabis This one with But in costs this and to talk in lowest Europe don’t gram grow gram $XX podcast the we ability about dry right THC We are flower. at have of production a high is $X.XX of now. too per the we flower reiterate world. growing the we much. of of about

has potential low So, tremendous cost that a structure European market, to or a potential. Colombia the grade the fulfill product has out significantly and idea international with of high

are some millions management, in be life I is we Manalo meaningful. with there, Annabelle long-term specific going risks we potential. realized. Now, take last XXX patients left to is are meaningful It’s life potential There we to is to to investing sciences that efforts, think the yet have we And And long-term. believe the the so, that are highlighted served ailments we to but But start well my because patients pillar. complement one I that the non-addictive, – worldwide. – they the we anxiety in the the that cannabis help pain that are going it’s and most supply play in can management flow That future Dr. why which there has billions be certainly opioids, and consumers insomnia. the believe to today we don’t risks of in as that of Annabelle? those role replace inherent medicine that meaningful once potential today last answer That’s based safe, let leading for believe there sciences have regulatory those as going team will I The is replace million will that time. a get tremendous over the is because possibility being prescriptions why that I Dr. with am this over chain. with thankfully plant to

hear I am you better. potential you leading because to always It’s Sure. really life patients and there much a fill you tell Yes. so to big sciences trial saved clinical so they cannabis like, oh, going some give going you are are Luis. thank to and shoes last, okay, feel is you for are they

mentioned, data more manner, cannabis that we is untraditional and current our As in to protocols. things in very are ways actually creating a traditional I had doing

not So, from UK, zero for just feel after patients in are do the asking how we you to five, utilizing cannabis. instance,

pain. for data relieved see feed, One to it’s It’s live mechanism to plant cannabis. from has patient. patient medicines about is same pain opposed once patient the We treating also from medication a really we kind pain about the relieving another how based everybody uses we utilizing And the can and/or that’s giving the the actually And of pain comes where medication what and just wellness toxicities disease. condition that a proprietary through see. our where is actually always our are measurable that historically causes

CBD mouse. still that traditional preclinical or day, on cannabinoids could on X,XXX mouse not recent milligrams at that which overdose any science data shows per we the is Our a gave

their be chance it. kind countries. of milligrams the showing per if but will into FDA That is a lot has still is day is it’s the give behind X,XXX They are efficacy, So, to going it of starting of the get There industry they that are have A to that science. lot about that really The there product safe. other potential it. overdoing are the would into that are it, But countries look done cannabis, they to look first something way were very potential the into studies for. cannabis prove safety, there conservative will look there. to that’s we that a countries

Okay, there. we will start

of We trial, of then effect. course you will products. open protocols to more if the a there. do musculoskeletal of and the Last up ton clinical Usually within how chronic trial, trials. many is plant-based or And can show thing current In domino you And trial, the we quality can into you will over fibromyalgia also study just it’s whole try cancer looking that so this then This but clinical a to very medicine see counter cancer a be increases studying diverse. lead our clinical inflammation, pain, are we will life. patients, pain, are clinical decreases. are studying we and

at makes and in are that’s a an It’s than the And sciences a toxic depression, outcome looking It’s looking patient what as really patient anxiety, think are very special. getting patient that’s products. amazing very more treating We at not we so and for about I a safe. whole. life more

sector evaluated to days, brought be CBD. growth I products in to we would market a that those just insights XX that act the highlight example, identified within an in product earlier our and looking of that at Dr. value which on we highlight House from of consumer of our in And the able their something growth is, real perspective, meaningful our and That’s that great. days. Annabelle. develop House to it insights cannabinoid ability did they this jump vape will Thank consumers are represent They market, something this the I categories quickly. on gain and XX you, proposition and touched alternative is and we year Brands product Within call, our and to Brands as quickly would portfolio. access

advantage are, that growth of think And categories of so our able Brands House come we they trends when we our and sort Especially about look take what from accelerate opportunities timeline, of the as online. are perspective, like. what to

growth that in and could month, of key a activate may And that, I vapes So, that the before change year. our we the today is today. market you and products cannabinoid can end market on have tell in alternative

I product offering speed, not our are heavily deliver they one as So, any our brand, can really any diversity us those come any on And so on we on trends for product capitalize that offerings. think promises reliant here made go. We to one our the strength we to is be as and one of well as able our channel, today. have

If this I question. I up could, of maybe pick end will commercial the just

interesting said times Florida, but this I have really thing the about I many before. think

and worked, change rush a things the to levels – can into we capital often massive infrastructure happens. all Well, multiple a wait commercial X years to access all available in that do not and and cannabis rush we to months activation of the there sectors we was the And as we even there put may we House not that will regulatory economies were thinking made point We return still not initial is meaningful can that So, ago, build activate for six eventually, how And the Even ways Brands company that took consumers come, there the rush out. never the But And capital understand may wait available Flora build that. of today. that side, company, a to in NASDAQ-listed was facilities, world we certainly can have the then and there infrastructure, approach. make and able a are put can in to or immediately from be that. didn’t U.S. even the invest will rewarded get market. to the steps on to necessary opposite these many of and where ago. went

benefits this come gives and to fully us before. I and more approach think shifting infrastructure to those ever than Flora’s more start we reap initial integrate to only and more as runway to markets down online reach revenues continue opportunity

bit little Well, went over. Beautiful. a we

our Regulatory you we Advisor, Lead our here. Thank Annabelle, on And out of Bell, Affairs. Officer, VP Dr. obviously finish We talk and new to Warnock, Luis, all CEO, Thank Jason to so So, Scientific will Financial with our thank soon. so you you Officer, Chief today. time to for being our Commercial this everybody Holly brand much much Elshad us. and for was who appreciate Chief able everybody’s all stay you

everyone. you Thank