TORONTO, ONTARIO – June 7, 2021 — Flora Growth Corp. (NASDAQ: FLGC) (“Flora” or the “Company”), an all-outdoor cultivator and manufacturer of global cannabis products and brands, today announced that the Company has signed a Letter of Intent (“LOI”) for the purpose of making an initial strategic equity investment of €2M (two-million Euros) into the European cannabis company, Hoshi International Inc. (“Hoshi”).

“This initial investment into Hoshi is the first of many steps by Flora to advance its plans to launch Flora-branded products across the world,” said Luis Merchan, CEO of Flora. “We believe in backing strong teams with proven track records and creating synergistic relationships where core competencies have minimal overlap. The Hoshi team has built a fantastic base in Europe and by utilizing our low-cost, high-potency product and established brands, it allows both of our organizations to have a competitive edge as the European cannabis market continues to grow rapidly.”

Hoshi is positioned to become a leading vertically integrated medical cannabis company in Europe. Hoshi was founded by a group of cannabis entrepreneurs who have built and scaled several cannabis businesses in the highly regulated cannabis market in Canada. Flora’s proposed investment into Hoshi will establish Flora as a preferred strategic supplier to Hoshi’s two EU processing facilities, located in Malta and Portugal.

Hoshi, through its wholly-owned subsidiary, has entered into a letter of intent with Malta Enterprise, the economic development agency for the Republic of Malta, a member of the European Union, to import, process, produce and distribute finished cannabis and cannabis derivatives products (the “License”). The formal License is expected to be issued by the Maltese Medicines Authority upon inspection and completion of the EU-GMP compliant cannabis processing facility. Additionally, Hoshi has been awarded a conditional license for cultivation and processing in Portugal for both greenhouse and outdoor production.

“We believe this strategic partnership will provide Flora with a manufacturing footprint in the EU that allows us to build and distribute Flora-branded products to its customers in the EU, while also providing a port for the importation of compliant, high-quality, Colombian outdoor cannabis flower, and derivatives,” said James Williams, VP of Corporate Development for Flora.

This strategic investment, anticipated to close by mid June, is expected to further enhance Flora’s ability to capitalize on the rapidly evolving European cannabis markets, providing additional distribution opportunities for Flora’s portfolio of internationally registered and recognized cannabis-based products. Flora anticipates leveraging Hoshi’s experienced team and deep knowledge of global medical and recreational markets as it explores further opportunities to expand production and distribution capabilities.

“A partnership with Flora will enable Hoshi to fast track a number of established initiatives to sell high-quality GACP flower to the EU market,” said John B. Aird, CEO of Hoshi. “We look forward to working with the Flora team and accessing not only their high-end genetics and outdoor-grown cannabis, but also assisting Flora to distribute more finished products to customers across the EU.”

Strategic Highlights of the Investment

• Strategic partnership with a company that holds European assets, providing Flora with a pathway to European distribution with the introduction of Flora’s products, formulations, and brands.
• Alignment between two strong management teams. Hoshi’s management team has extensive entrepreneurial and leadership experience in the global cannabis market.
• Leveraging Hoshi’s various distribution agreements throughout the European Union, including the United Kingdom, Germany, and Poland. Additional distribution agreements are being actively pursued and negotiated.

About Hoshi International Inc.

Hoshi is a European focused, fully integrated medical cannabis company led by a team of renowned cannabis entrepreneurs. Hoshi is focused on developing and operationalizing assets across the global cannabis industry with an emphasis on cultivating, manufacturing, and distributing cannabis derived products. Hoshi is uniquely positioned to be a leading provider of cannabis and derivative products for the emerging European market.

About Flora Growth Corp.

Flora is a cannabis company that will leverage natural, cost-effective cultivation practices to supply cannabis derivatives to its diverse business divisions of cosmetics, hemp textiles, and food and beverage. As the operator of one of the largest outdoor cultivation facilities, Flora strives to market a higher-quality premium product at below market prices. By prioritizing natural ingredients and value-chain sustainability across its portfolio, Flora creates premium products that help consumers restore and thrive. Visit www.floragrowth.ca or follow @floragrowthcorp on social for more information.

Investor Relations Contact:

Evan Veryard
+1 416 571 9037
This email address is being protected from spambots. You need JavaScript enabled to view it.

Public Relations Contact:
Cassandra Dowell
+1 (847) 271-3443
This email address is being protected from spambots. You need JavaScript enabled to view it.

Cautionary Statement Concerning Forward-Looking Statements

This document contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing.  We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us.  Such forward-looking statements relate to future events or our future performance, including: the ability to complete the Hoshi investment and the timing thereof; the future relationship between the Company and Hoshi; our expansion plans; our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities.  You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms.  In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business.  These and other factors may cause our actual results to differ materially from any forward-looking statement.  Forward-looking statements are only predictions.  The forward-looking events discussed in this document and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us.  We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this document and other statements made from time to time by us or our representatives might not occur.