21 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 Low-cost Colombian Cannabis Cultivation. Favorable growing conditions. • Developing unique organic agronomic management system tailored to Cosechemos’ climate and conditions • Consistent 3-mph wind decreases incidence of plant-harming pathogens due to winds and access to other vegetation • Organic nutrient-rich soil allows for high-density planting • Optimized cultivation strategy to obtain 3+ harvests per year (1.5-3X more than peers) Experienced and affordable labor. • Low-cost without compromising quality; over 70% of all cut flowers imported to U.S. come from Colombia • A strong U.S. dollar provides Flora with a cost advantage; US $1 = ~3,884.84 pesos 1 • Colombia has a highly-skilled workforce in agriculture at only 1/10th of the cost compared to the United States 2 $1.49 $0.15 $0.06 $1.85 $1.86 $2.36 INFRASTRUCTURE S U P P L Y C H A I N 1 https://www.bloomberg.com/quote/USDCOP:CUR (11/14/21) | 2 https://mjbizmagazine.com/great-cultivation-debate (5/2017) SOURCE: Each company’s filings and presentations (FY 2019) $ 10 /acre < $ 150 $ 0 Long-term monthly lease w/ purchase option Monthly utility costs Water cost due to natural deposits SUNLIGHT / DAY CONSTANT WIND DAYS / YEAR 12.8H 3MPH 365 FLORA USD/GRAM OTHER LPs USD/GRAM $0.06 $1.49-2.36 VS Flora’s Cost Advantage. LOWER COST THAN CLOSEST COMPETITOR 60%
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