Flora Growth Corp. announced it has signed a non-binding Letter of Intent (“LOI”) to form a joint venture (“the JV”) with Canadian based Avaria Inc. (“Avaria”), the manufacturer and owner of KaLaya – an award-winning pain cream distributed nation-wide across Canada. Through the JV, Flora Growth will manage registration, sales, and distribution of KaLaya products in Colombia, Mexico, and other LATAM countries, while Avaria will supply finished product to the JV. The profits from the sale of KaLaya products under the JV will be divided equally between Flora Growth and Avaria, increasing the value of Flora’s existing distribution channels for the Company. Further, Flora Lab will work to produce KaLaya’s CBD-infused products using cannabis from Flora’s cultivation facility. These products are expected to be distributed across LATAM using Flora Lab’s established distribution channels, with the aim of exporting to the U.S. market, where Avaria is currently launching the KaLaya brand. Avaria does not currently hold a license in Canada to produce cannabis derived versions of its products at a commercial scale. The JV is subject to customary conditions including each of Flora and Avaria being satisfied with their due diligence reviews and the parties entering into a definitive agreement.