Flora Growth Reaffirms Supply Deal After Curaleaf Denial
In an unusual twist of corporate he-said-she-said, cannabis giants Curaleaf Holdings (TSX: CURA) and Flora Growth (NASDAQ: FLGC) have found themselves embroiled in a public dispute about the nature—and even the existence—of a supply agreement between them.
While Flora Growth has most recently affirmed a new supply agreement to distribute medical cannabis products in Germany, the back-and-forth has played out on social media, leaving investors and the cannabis industry scratching their heads and wondering just what kind of partnership these two companies actually have.
The saga began on October 30, when Flora Growth released an announcement about a supply agreement with Curaleaf to “target [the] $450 Million German cannabis market.” The post suggested a partnership that would see Curaleaf supplying cannabis products to Flora for distribution in Germany, where Flora is expanding its presence in the rapidly growing cannabis market.
Curaleaf, however, quickly poured cold water on this optimistic narrative. The company’s official X account responded, bluntly denying any deal: “There is no agreement in place between Curaleaf and Flora Growth Corp.”
Fast-forward a few days to November 4, and Curaleaf again took to X, this time with a different tune.“Curaleaf has entered into an agreement to supply cannabis products to Flora Growth for distribution through Flora in Germany,” the company posted.
They went on to direct curious investors to a Form 8-K filing from Flora Growth, dated November 1, that supposedly outlines the details of the supply arrangement.
Yet even with this clarification, confusion lingered. In a follow-up post, Curaleaf reiterated that “this supply agreement was signed only on October 31 and is a limited transaction and is not a broader, ongoing commercial partnership.” This second statement felt almost defensive, as though the company was trying to manage runaway expectations around what had been characterized just days earlier as non-existent.
Flora Growth followed this development with another release that reaffirms the agreement, explaining that, “the parties have now confirmed the supply agreement-first dated October 28, 2024 and, as revised and fully executed, dated October 31, 2024, by and between Flora and Northern Green Canada Inc., an affiliate of Curaleaf Holdings.”
One X account user, The Dank Informer, explained their theory that Flora Growth had initially signed and returned what it believed to be the final version of the supply agreement on the day the company posted on X the announcement.
However, on October 31, Curaleaf unexpectedly requested additional changes to the document, prompting another round of review. Despite the surprise, Flora quickly agreed to the revisions, and by the end of the day on October 31, both parties had signed the updated agreement.
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