Colombian President Ivan Duque Marquez has signed a new law after a high profile meeting of Colombian cannabis executives with US listed companies that would allow the export of a much larger amount of dried flowers from the country. The new law, an amendment to Colombian Decree 613, increases the amount of dried cannabis flowers (flowers, stems and roots) that can be exported from the country and also allows cannabis to be used in industrial products such as food and drink and for a lot more extensive marketing of cannabis products in Colombia.

“The passage of this bill greatly accelerates our strategic vision to bring our cannabis products to international markets, as stated in our first international supply agreement from Cosechemos, while we focus on expanding our global distribution platform for traditional consumer products. Now that we are able to export our high margin, high quality cannabis flowers produced at Cosechemos, along with a healthy portfolio of premium brands and a robust pipeline of stores, we will continue to focus on international markets for growth and sales Increase Generation, “said Jason Warnock, Chief Revenue Officer of Flora (NASDAQ: FLGC). “Another added benefit of the new regulations is that we can now process the entire plant, whereas Colombian processors previously had to destroy more than 60% of the biomass that we expect will further improve our margins from Cosechemos.”

Colombia Decree

Some of the new languages ​​are as follows:

  • In order to promote the pharmaceutical industry, Colombia will allow the importation of dried flowers, seeds, grains, plants, plant components and derivatives in free zones, so that companies can take into account the tax advantages of these zones.
  • The licenses were extended from five to ten years.
  • The advertising ban has been lifted.
  • The activities that can be developed in the food market are determined according to the strict standards of Invima and other competent bodies. This economic sector generates great returns worldwide and our country’s economy needs this boost.
  • The ban on the export of dried cannabis flowers will be lifted, so that in the following regulation a scientific debate will be conducted on the conditions under which and for what purposes this activity should be carried out, whereby the focus is always on medical and scientific purposes.
  • The dispensing of cannabis-based master preparations in drugstores is allowed, which facilitates access to these drugs to the patient, as these facilities are the most numerous and closest route to the patient.

Flora growth ready for expansion

Flora Growth said these new regulations provide an opportunity to grow sales in the short term and optimize its global diversified supply chain of premium brands and products. The company said that tWith this update of the law, Colombian growers like Flora Growth have instant access to this huge segment of the market that was previously inaccessible. “The approval of cannabinoid-containing ingestible products provides a short-term opportunity to grow sales through its food and beverage division, Kasa Wholefoods. Kasa intends to leverage existing relationships to distribute CBD versions of its portfolio, including the Recently announced $ 10 million distribution agreement with Tropi, Colombia’s largest food and beverage retailer with 130,000 sales points across the country. ” In addition, by lifting local marketing restrictions on cannabis products, Flora Growth will be able to increase awareness of its product portfolio and generate additional sales through its 1,500+ outlets in Colombia.

Khiron applauds news

Alvaro Torres placeholder image, CEO of Khiron Khiron Life Sciences Corp. (TSXV: KHRN) (OTCQX: KHRNF) said, “Colombia has been a regional leader in medical cannabis law since 2015, and this new decree reinforces the government’s commitment to building a resilient and competitive industry. After making the industry a national strategic priority in late 2020 and expanding general health care for THC and CBD medical cannabis products, the new regulation expands the country’s growth potential in various product categories in Colombia and by exporting dried flowers. ”Since April 2020, Khiron has his Zerenia pharmacy in. medical cannabis given to patients Bogotá, in more than 350 cities and towns across the country. With Decree 811 of 2021, the government has significantly expanded the number of pharmacies that are allowed to carry and dispense medical cannabis products from just a handful today to a nationwide network of more than 14,000 pharmacies.

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