FORT LAUDERDALE - Flora Growth Corp. (NASDAQ: FLGC), a global cannabis consumer-packaged-goods company, announced plans to release a cannabis home grow kit in Germany, aligning with the country's new recreational cannabis legalization law. The law, effective April 1, 2024, permits adults over 18 to possess up to 50 grams of cannabis for private use and to cultivate up to three plants.
The company, with a presence in Germany through its wholly-owned subsidiaries since 2017, is positioning itself to capitalize on the anticipated legalization surge. Flora Growth holds a significant seedbank, claiming to be one of the largest globally, with over 200 strains, including several award-winning varieties.
This resource is expected to play a crucial role in Flora's strategy to meet the demand for home cultivation in Germany, a market the company estimates could reach $400 million post-legalization.
With the German recreational cannabis market's potential pegged at $4.2 billion and the broader European market forecasted to hit revenues of $10.2 billion, Flora Growth is eyeing a substantial opportunity. The company's experience in Germany, having secured the first medical cannabis license and sold the country's first gram of medical cannabis, provides it with an established foothold.
Starting July 1, 2024, German adults will also be allowed to join nonprofit social clubs, with a cap of 500 members each, where they can purchase up to 25 grams per day or 50 grams per month. Flora intends to supply these clubs with seeds and cuttings for startup material.
The company draws parallels with the Canadian market, where nearly one in ten cannabis consumers reported home cultivation following legalization. Flora's CEO, Clifford Starke, expressed confidence in a similar uptake in Germany, stating, "We believe German adults will exhibit a similar pattern and we intend to give them the tools to do."
The cannabis home grow kits, select genetics, and cuttings are slated to be available on a limited quantity basis for personal use in the German market through justcbdstore.de and preferred partners.
This initiative is based on a press release statement from Flora Growth Corp. and reflects the company's efforts to adapt to and capitalize on evolving cannabis legislation in Germany.
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