TORONTO, Jan. 03, 2020 (GLOBE NEWSWIRE) -- Flora Growth Corp. (“Flora” or the “Company”) is pleased to announce that it has entered into a letter of intent (“LOI”) to acquire a 90% equity interest in Kasa Wholefoods Company S.A.S. (the “Transaction”), a Colombian producer of exotic (Amazonian) fruit juices and chocolates. Kasa operates under the “Mambe” brand in Colombia.
Under the Mambe brand, Kasa produces fruit juices and pulps from organic exotic fruits such as mango, acai, passion fruit, camu and guava, as well as more commonly used fruits such as bananas, strawberries, oranges and apples. Kasa also produces chocolate confectionary using 70% Colombian cacao.
Mambe products are already widely distributed in Colombia, being sold in Colombia’s largest retailers including Carulla, Tostao’ Café & Pan, Deli Reposteria and is available for purchase through Uber Eats.
Over the last year, Kasa has been researching and developing CBD-infused juices and chocolate. Kasa already has a line of CBD-infused juices (10 mg CBD/250 ml of juice) and chocolate bars (40 mg CBD/100 mg of chocolate). Kasa is ready to sell such CBD-infused products in the Latin American market immediately upon receiving regulatory approval, which is expected in 2020.
Kasa has received several awards and grants from the Colombian government for its innovative products and social impact. Kasa works with local farmers and indigenous Amazonian communities to cultivate fruits for the Mambe beverages which provides sustainable economic opportunities to these communities and is a viable alternative to Amazon deforestation and illegal mining in these areas.
Damian Lopez, Flora’s CEO, commented: “We are excited to acquire an entrepreneurial, innovative company like Kasa Wholefoods. They have done an excellent job of developing a line of world-class juices and chocolates. There is immense demand for CBD-infused products in Latin America and worldwide. We will combine our organic CBD-Oil with Kasa’s organic Amazonian based fruit juices and chocolates to satisfy this demand. We expect to obtain regulatory approval in Colombia to infuse food & beverages with CBD in 2020 and be the market leader in this category.”
In order to close the Transaction, Flora must pay to shareholders of Kasa (the “Vendors”) an aggregate amount of USD$294,000 in cash and shall repay Kasa’s outstanding loan payables of USD$91,000. The Vendors shall retain a 10% equity interest in Kasa which may not be diluted until Flora invests USD$5 million in Kasa. Following the completion of this financing milestone, all shareholders of Kasa will be diluted if they do not participate in any Kasa financing.
The Transaction is subject to the parties negotiating and entering into a definitive agreement and obtaining of the necessary regulatory approvals.
Flora Growth Corp.
At Flora, we are building the world’s largest and lowest cost vertically-integrated producer of organic cannabis oils, CBD-infused food & beverage, pharmaceutical-grade, medical and cosmetic-grade derivatives from the cannabis plant.
For further information, contact:
Damian Lopez
+1 416 861 2269
damian.lopez@floragrowth.ca
Website: www.floragrowth.ca
Cautionary Notes
This news release may contain forward-looking statements. These statements include statements regarding the Company’s operations, Kasa’s operations, the Company’s ability to close the Transaction, the Company’s ability to obtain regulatory approvals to infuse CBD-oil into food & beverages and the Company’s future plans and objectives. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.