11 FLORA GROWTH S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L • Made initial equity investment of €2M (two-million Euros) into Hoshi International • Investment will establish Flora as a preferred strategic supplier to Hoshi’s two EU processing facilities, located in Malta and Portugal, expected to be operational in 2022 • Opens distribution gateway of Flora’s Colombian cannabis and product portfolio into the European Union • Hoshi’s experienced team and access to major cannabis markets to serve as a catalyst for revenue growth • Flora to leverage various international distribution agreements throughout the European Union, including the United Kingdom, Germany, and Poland Furthering our expansion in Europe with manufacturing and distribution. • Flora’s Food & Beverage division, Kasa Wholefoods signed an initial 1-year sales agreement expected to be worth over US $10M to supply food products to Tropi • Tropi is Colombia’s largest food distributor and reaches over 130,000 distribution points across 38 cities in Colombia. • Kasa Wholefoods completed first delivery in July 2021 worth US $1.1M under agreement, expects sales to reach approximately US $2M per month. • Kasa expects to generate additional sales of its entire food and beverage product portfolio, including its portfolio of cannabinoid containing ingestible products given recent law change. Growing distribution channels and sales relationships with major CPG distributors. Expanding Global Distribution. • Formed JV with Avaria for the sale of its award winning KaLaya brand across LATAM. • Flora to support the development and production of CBD pain cream formulations for the global market, with an immediate focus on export to LATAM and the U.S. • Profits from the sale of KaLaya products divided equally, with Flora managing distribution, increasing the value of Flora’s existing 2,500+ distribution channels • KaLaya has sold 1M+ units across Canada through major retailers (Loblaws, Walmart, London Drugs), and holds the number one customer retention rate of Loblaws’ pain creams, among other awards (TSC, Amazon.ca’s Consumer Choice, Purity Life). Increasing value of Colombian distribution through JV with established brand. GLOBAL EXPANSION E U R O P E C O L O M B I A L A T I N A M E R I C A
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