Flora Growth Corp. has given a progress update on its investment in Hoshi International Inc. in Portugal. Hoshi's new financial partner agreed to take over the capital expenditures and operational expenses in exchange for an equity stake in the company. As a result of this collaboration, Hoshi has made headway in the areas of facility construction, licensing inspection and cannabis clones.
The project in Portugal currently employs 18 full-time staff. To date, approximately $20 million has been invested into the facility.
"We are pleased with the strides Hoshi has made over the past 18 months. Our investment in the European cannabis market aligns with our strategy. We believe that Hoshi's facility will become a key player in the European cannabis landscape, particularly as the market continues to evolve and move forward," said Clifford Starke, Chief Executive Officer.
Flora initially made an equity investment of $2.4 million into Hoshi in 2021, securing a 10% ownership in the company. Hoshi, in turn, controls 51% of the Portuguese entity operating the facility. As milestones are met, Hoshi's ownership stake will be reduced to 25%.
Flora is exploring the expansion of its EU-GMP license from Germany by collaborating with Hoshi to establish a direct sales channel. This strategic move would allow Flora to secure a long-term supply of high-quality medical cannabis from Hoshi's operations, based in a low-cost and favorable jurisdiction.
For more information:
Flora Growth
www.floragrowth.com