Colombia began its path towards cannabis legalization in 1986, and now has one of the most advanced regulatory systems on the continent. In late July, President Iván Duque authorized the legal sale and global export of dried cannabis for medical purposes.
Colombia passed a framework regulating the production, distribution, sale and export of seeds and other cannabis derivatives in 2016, but until now, the country had not allowed the export of dried cannabis flower.
With the signing of decree 811, the government released the country from the shackles that prevented it from dominating, if not conquering, the international cannabis markets.
According to the president’s office, the global market for medicinal and industrial cannabis could be worth US$62 billion by 2024, and with an ideal climate for the plant, permissive legislation and low-cost production, Colombia is well-positioned to grab a big chunk of the global market share.
Local industry is dominated by a few players that attract investor attention above others. These companies feature very dissimilar business models that make up their most attractive characteristics.
Photo courtesy of Flora Growth.
Flora Growth Corp. (NASDAQ: FLGC) is a Miami-based company that leverages all-natural, outdoor cultivation practices to supply cannabis derivatives to four business divisions.
Its “Cosechemos” cultivation farm, located in Bucaramanga, Colombia is licensed to cultivate 247 acres (100 hectares) of cannabis.
Flora Lab is the company’s manufacturing and R&D brand, producing pharmaceuticals, cosmetics and nutraceuticals for domestic and international markets. The brand sells products manufactured in its 16,000 sq. ft. facility across over 2,500 distribution channels.
Flora also owns Kasa Wholefoods, a Colombian company that produces food and beverages using responsibly sourced exotic fruits from the Amazon.
Flora Beauty is its CBD beauty and cosmetics division, founded by Colombian TV personality Paulina Vega.
Finally, the Hemp Textiles division leverages Flora Growth’s infrastructure to capture market share in the hemp industrials market