From its outdoor operations in Portugal, Canadian-headquartered The Flowr Corporation (TSXV: FLWR) (OTC: FLWPF) says it’s made the largest known sale of bulk medical cannabis in the European Union to date.
In a statement Wednesday afternoon, Flowr said its wholly-owned subsidiary, RPK Biopharma Unipessoal, Ltd., has entered into a supply agreement with Galaxiavertical – Unipessoal Lda. According to the deal, Galaxia will buy around $740,000 worth of high-THC medical cannabis biomass from RPK.
The supply agreement is a major step forward in the development of the Flowr’s European strategy, CEO Darryl Brooker said in the statement.
“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.”
Last October, Flowr said it completed harvest of the largest known outdoor medical cannabis project in the E.U. According to the company, it grew more than 40,000 plants, achieving high-THC potency, and the recent deal supports its business model of growing outdoors in Portugal.
Portuguese lawmakers are currently mulling cannabis legalization, while medical cannabis access in the country lags.
The firm notes the strong growth potential in Europe, citing estimates from Brightfield the market will generate over US$570 million this year, and reach over US$3.1 billion by 2025.