Editor’s note: Flora Growth issued this press release after Curaleaf denied the supply agreement on Oct. 30 between the two companies.
FORT LAUDERDALE, Fla., Nov. 4, 2024 – PRESS RELEASE – Flora Growth Corp. reaffirmed on Nov. 4 its medical cannabis supply agreement with Curaleaf Holdings Inc. subsidiary Northern Green Canada Inc.
On Monday morning, Curaleaf confirmed on X that “Curaleaf has entered into an agreement to supply cannabis products to Flora Growth for distribution through Flora in Germany. The terms of the agreement are disclosed in a Form 8-K filed on November 1, 2024, by Flora Growth Co. [https://www.sec.gov/Archives/edgar/data/1790169/000106299324018209/form8k.htm]. Curaleaf is pleased to have concluded this agreement with Flora.”
Although on Oct. 30 and 31, 2024, Curaleaf tweeted that there was "no agreement in place between Curaleaf and Flora Growth Corp.," the parties have now confirmed the supply agreement-first dated Oct. 28, 2024 and, as revised and fully executed, dated Oct. 31, 2024, by and between Flora and Northern Green Canada Inc., an affiliate of Curaleaf Holdings Inc.
Pursuant to the terms of the new supply agreement, Northern Green agreed to supply Flora with medicinal cannabis products, with Flora to distribute such products in the German market. The New Supply Agreement provides for a minimum purchase obligation and a minimum supply obligation on Flora and Northern Green, respectively, subject to certain terms and conditions.
All product received by Flora under the new supply agreement must be used solely for medicinal purposes, and Flora cannot resell or otherwise transfer any product to a third party for nonmedical use without the prior written consent of Northern Green. The agreement is a limited transaction and is not a broader, ongoing commercial relationship with Curaleaf.
The new supply agreement replaces the previously existing cannabis supply agreement, by and between Terra Verde LDA , an affiliate of Curaleaf, and ACA Müller ADAG Pharma Vertriebs GmbH, an affiliate of Flora, dated as of Feb. 18, 2020, which provided for the supply of medicinal cannabis products by LDA to ACA Müller, with ACA Müller to distribute such products in the German market.
