Most cannabis companies that list their stocks in the United States grow their products in indoor greenhouses, often in Canada.
But a company named Flora Growth that went public on the Nasdaq on Tuesday is taking a different approach. Although headquartered in Toronto, its agricultural operations are in Colombia. And it cultivates cannabis the old-fashioned way: outdoors.
Why? It’s a lot cheaper.
It costs Flora Growth just 6 cents to cultivate a gram of dry flower for medicinal grade cannabis in Colombia, compared to about $1.25 a gram indoors in North America, CEO Luis Merchan said in an interview with CNN Business before the IPO.
Yet other companies aren’t racing to South America, he said, because it takes time for companies to get approval from the Colombian government for licenses and registration to set up cannabis facilities.