Flora Growth Corp. Enters into New Supply Agreement with Northern Green Canada Inc.

Flora Growth Corp. (NASDAQ: FLGC) has announced a significant development in its operational agreements by entering into a new supply agreement with Northern Green Canada Inc. The agreement, made effective as of October 31, 2024, marks a pivotal moment for Flora as it solidifies its partnership with Northern Green, an affiliate of Curaleaf Holdings, Inc.

Following a series of negotiations, Flora received the final version of the New Supply Agreement from Curaleaf on October 28, 2024, with the agreement ready for signing. Subsequently, Flora signed and returned the agreement to Curaleaf on October 29, 2024. The final signing took place on October 31, 2024, after certain additional changes were agreed upon by both parties, as per the terms outlined in the agreement.

Under this new agreement, Northern Green has committed to supplying Flora with medicinal cannabis products, specifically designated for distribution in the German market. The agreement specifies both a minimum purchase obligation for Flora and a minimum supply obligation for Northern Green, subject to various conditions.

Noteworthy clauses within the agreement stipulate that all products provided by Northern Green are intended solely for medicinal use by Flora and cannot be resold or transferred for non-medical purposes without prior written consent from Northern Green. Moreover, the agreement allows Northern Green the option to terminate the agreement without cause, providing a sixty-day written notice period to Flora.

This New Supply Agreement supersedes an existing cannabis supply agreement dated February 18, 2020, between Terra Verde LDA and ACA Müller ADAG Pharma Vertriebs GmbH. This older supply agreement, referred to as the 2020 Supply Agreement, was effectively replaced by the recent agreement between Flora and Northern Green.

In conjunction with the signing of the New Supply Agreement, a deed of termination, settlement, and release was executed on October 28, 2024, involving Flora, Northern Green, ACA Müller, and Curaleaf Portugal LDA. This deed terminated the 2020 Supply Agreement, with certain provisions surviving the termination, as specified in the terms and conditions of the Termination Agreement.

For further details on these recent developments, the complete New Supply Agreement and Termination Agreement can be viewed as exhibits 10.1 and 10.2, respectively, in the Current Report on Form 8-K filed by Flora Growth Corp.

This marks a strategic move by Flora Growth Corp. as it expands its reach and solidifies partnerships to enhance its presence in the medicinal cannabis market, particularly in Germany.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Flora Growth’s 8K filing here.

Flora Growth Company Profile

Flora Growth Corp., together with its subsidiaries, engages in the growth, cultivation, and development of medicinal cannabis and medicinal cannabis derivative products worldwide. It operates through three segments: House of Brands, Commercial and Wholesale, and Pharmaceuticals. The company cultivates, processes, and supplies medicinal-grade cannabis flower, and cannabis derived medical and wellness products.