The Fine Columbian
Back in the day, my Wesleyan fraternity went into paroxysms of ecstasy when Steely Dan released: “Gaucho”. The first big single was “Hey 19” which included sneaky references to Fagen and Becker’s time at Bard College, and of course, achieving higher levels of consciousness. I won’t sing it, but it won’t take much to remind you of “The Cuervo Gold, The fine Columbian…” making tonight a wonderful thing.
Well, soon it will be medical cannabis patients in Europe who will be enjoying the fine Columbian, due to a big deal with globally motivated company with a big idea and the patience to execute. From the Cannabis Business Times:
THE SCOOP
The INTERNATIONAL scope of this deal is breathtaking and provides a road map for the potential for a legal global cannabis economy.
It all starts with Fine Columbian:
· “Incorporated in 2019, Flora’s Columbian operation is a 247-acre outdoor grow that’s 500 miles north of the equator, where 12-plus hours of natural sunlight per day produces year-round yields of dried cannabis flower at 6 cents per gram, or roughly $25 to $30 per pound.”
Here’s part of the Big Idea:
Flora Growth has made “a 2-million-euro strategic investment to become a preferred supplier to Hoshicap Portugal, which is a subsidy of Toronto-based Hoshi International”
Flora Growth is headquartered in Toronto but 95% of the company’s operations are in Columbia
The company CEO, Luis Merchan, is a dual citizen, born and raised in Colombia but has spent his entire executive career in retail in the U.S.
THE DEEP DIVE
So far, we have Columbia, Canada, Portugal, and the US. Here’s more on the US part:
The company raised almost $50 Million in 2020 including an IPO on the NASDAQ where it was the first known cannabis cultivator to list without using a special purpose acquisition company (SPAC), reverse merger, or dual listing.
Let’s add a few more:
The deal will allow Flora to access the low labor and energy costs of extraction & testing facilities in Malta and Portugal and distribution through Hoshi’s channels throughout Europe
Not done yet:
Flora will provide access to its library of tested and proven outdoor genetics to Hoshi for eventual cultivation at its Portugal facility.
Hoshi also has import distribution agreements in the Czech Republic, Germany, Poland and the U.K.
THE LOOP BACK
The transaction is the first of many steps intended by Flora to launch its seven brands and 300-plus products across the world. Flora’s cultivation practices to supply cannabis derivatives also include business divisions in cosmetics, hemp textiles, and food and beverage.
It might appear that the environmental cost of shipping cannabis from Columbia to Europe seems silly, but looks like the genetics will soon migrate to Portugal.
And that’s a wonderful thing.
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