U.S. hemp-CBD company Green Lotus, a newly acquired subsidiary of Freedom Leaf Health, has completed its inaugural shipment of $600,000 of topical hemp-CBD products to Mexico. These products will be distributed by Green Lotus’ Mexican partner, CBD Life, initially in up to 4,000 locations and expanding to over 40,000 locations over the next 12 months.
The export, which was completed July 31, represents the first commercial shipment of topical CBD retail products that can be distributed in Mexico through regular distribution channels, requiring no additional government approvals or medical certifications. The initial shipment includes three SKUs of 3-ounce CBD creams labeled “Heat,” “Freeze,” and “Salve.” Every product label will also include “manufactured by Green Lotus.”
“We are very excited that Green Lotus is the first U.S. hemp-CBD company that has successfully exported commercial products to Mexico under the new permit regime,” says Carlos Frias, CEO of Freedom Leaf. “We have worked hard over the past three years with our Mexican partner, CBD Life SA, and the government to obtain the necessary permits and meet the regulatory requirements to reach this milestone. This is just the beginning of our penetration of the Mexican market. We will ship another $1.4 million of topical products in the third quarter and we expect to start shipping tinctures, gel caps, edibles, and beverages beginning in the fourth quarter as part of a larger $26mm order already placed with Green Lotus.”
David Goldburg, Merida Capital senior partner and chairman of Freedom Leaf’s board, adds, “One of the reasons we were so excited about the Green Lotus acquisition is the ability of Carlos Frias and his team to penetrate new international markets. As a first mover in Mexico, we have an opportunity to be one of the largest players in this emerging market with significant opportunities for growth. This also validates Merida’s investment thesis that the Freedom Leaf-Green Lotus combination will significantly enhance revenue domestically, open new markets, and lead to increased market share, benefiting all shareholders as management continues to execute on its strategic plan.”