The Flowr Corporation (TSX.V: FLWR) FLWPF announced the first sale of medical cannabis from its outdoor facility in Aljustre, Portugal via its wholly-owned subsidiary RPK Biopharma Unipessoal, Ltd, representing the largest known medical cannabis bulk sale transaction in the European Union to date.
The Toronto-headquartered company revealed on Wednesday that RPK Biopharma Unipessoal, Ltd. has signed a supply agreement with Galaxiavertical - Unipessoal Lda. Under the deal, Galaxia agreed to buy high THC medical cannabis biomass for around $750,000.
The company highlighted that the new supply agreement, which is still subjected to specific approvals, represents considerable revenue from a single transaction and supports future business model cultivating outdoors in Portugal.
“This Supply Agreement is a major step forward in the development of the Company’s European strategy,” Darryl Brooker, CEO of Flowr stated. “Last year, we were able to successfully grow medical cannabis outdoors over more than 30 acres. The results showed that the Aljustrel site is the ideal location to grow outdoor medical cannabis and with a cost structure that will make our product very competitive as an input for medical cannabis derivative products, such as tinctures. We expect Galaxia to take receipt of the product by year-end and look forward to working with them in the future as they develop their extraction business in Portugal.”
European Medical Cannabis Market
The European medical cannabis market has been developing as many EU countries are updating their medical cannabis regulations. According to Brightfield, the market should generate more than $570 million this year, and hit higher than $3.11 billion by 2025.
Last October, Flowr finalized the harvest of the “largest known outdoor medical cannabis project in the EU,” cultivating more than 40,000 plants and achieving high THC potency.
The move comes on the heels, of the company’s $550,000 non-brokered private placement offering of 2.62 million units at 21 cents per unit. Flowr noted it would use the collected net proceeds to partially repay its outstanding indebtedness and for standard corporate activities.
Flowr shares closed Wednesday’s market session 0.23% higher at 15 cents per share.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.