Shares of the all-outdoor cultivator and manufacturer of global cannabis products and brands, Flora Growth Corp. (FLGC) are up 6.17% to trade at $8.78 in after-hours trading today. FLGC stock rose 63.12% to $8.27 on Wednesday. In terms of volume, FLGC stock traded 46.8 million shares yesterday, compared to 742.76K on average over the last quarter. Over the course of the day, FLGC stock fluctuated between $5.18 and $10.23.

The earnings per share ratio for FLGC was -0.34. In the previous five sessions, FLGC stock gained 164.22% of its value, while over the last month, it gained 120.53%, but on a year-to-date basis it has gained 72.65% of its value. FLGC stock is currently trading at an RSI of 86.10, while its SMA-50 is currently at $3.68. As a result of a JV effort, the FLGC stock price rallied in extended trading.

FLGC’s JV move: what was it?

A provider of cannabis derivatives to a variety of businesses, Flora cultivates cannabis using natural, cost-effective farming techniques. FLGC aims to provide premium products at a below-market price as one of the largest outdoor cultivation companies. FLGC stock creates products that support consumers’ restoration and well-being through the use of natural ingredients and value-chain sustainability.

This week, Flora Growth signed a non-binding letter of intent (“LOI”) to form a joint venture (“the JV”) with Avaria Inc.

• In Canada, Avaria is the owner and manufacturer of KaLaya, a pain-relief cream that has won several awards.
• The JV will allow FLGC to register, sell, and distribute KaLaya products in Colombia, Mexico, and other LATAM countries, while Avaria will supply the finished products.
• FLGC and Avaria will split the profits from the sale of KaLaya products under the JV, increasing FLGC’s existing distribution channels.
• Further, FLGC Lab will work with KaLaya to produce CBD-infused products using cannabis cultivated by FLGC stock.
• In LATAM, these products will be distributed by FLGC Lab’s established distribution channels, and Avaria hopes to export them to the United States where the KaLaya brand is currently being launched.
• At present, Avaria does not hold the required license in Canada to produce products made from cannabis.
• FLGC stock and Avaria must both be satisfied with their due diligence reviews in order for the JV to proceed.

What does FLGC Stock gain from this?

This partnership will bring FLGC’s award-winning KaLaya brand to FLGC’s Latin American distribution network. Flora Labs’ product is expected to receive a successful reception in Latin America as it has in Canada. Flora Labs is working with Avaria to manufacture CBD-infused versions of KaLaya products to be distributed in the region and exported into the United States. This partnership is a natural fit with CBD’s association with wellness, KaLaya’s established formulation, and Flora Growth (FLGC)’s low-cost, high-quality cannabis.