- Flora Growth is a global cannabis cultivator, product builder, and supplier, experiencing continued growth thanks to strategic acquisitions and an expanding supply chain for marketing its brands in various countries
- Flora announced its most recent acquisition in September — a deal to acquire the assets of the No Cap Hemp Co. brand in exchange for payment of 10 percent of the No Cap brand revenues up to a maximum of $2 million
- The deal grants Flora an immediate revenue stream free of closing cost considerations
- Flora has seen revenues skyrocket over the past year, with a 604 percent YOY increase in the H1 reporting period
Global cannabis cultivator, product manufacturer and distributor Flora Growth (NASDAQ: FLGC) is measuring its success in rapidly rising revenues brought on by strategic acquisitions and the expanding international movement of its brands.
The company recently reported a 604 percent increase YOY in its H1 revenues to about $15 million, which was also a 117 percent increase over the previous half-year financial report, and is anticipating new momentum from the recent acquisition of the No Cap Hemp Co. brand by Flora’s wholly owned subsidiary Just Brands LLC.
The No Cap acquisition is expected to add some 75 SKUs to Flora’s product portfolio plus the “No Cap” and “Moonblunt” trademarks, according to a Sept. 7 company news release.
“This transaction will allow Flora to immediately benefit from a profitable, cash flow positive and growing business,” Flora Growth Chairman and CEO Luis Merchan stated (https://cnw.fm/9lMtQ). “We look forward to increasing our product offering through this transaction while broadening our sales team in the process.”
Flora is headquartered in Canada where cannabis legalization has been pioneered, but the heart of the company’s operation is in northern Colombia, where its Cosechemos cultivation, extraction, and isolation facility, draws on an experienced workforce in the country’s fertile greenbelt to produce its brands.
Colombia is itself undergoing a cannabis transformation as it enacts progressive drug policy changes, establishing a regulatory framework to govern cannabis cultivation and exports. In August, Flora announced a distribution agreement with the Misak indigenous tribe’s pharmaceutical arm, which became the first native community business to receive a license from the national Ministry of Justice for legal cannabis production for medicinal and scientific use two years ago (https://cnw.fm/8m3lp).
The deal allows Flora to take advantage of the tribe’s “unique regulatory positioning” to rapidly advance the fulfillment of cannabis exports.
Merchan anticipates that the acquisition of No Cap’s brands will ultimately position Flora as the leader in the alternative cannabinoid market segment and that No Cap’s infusion technology will boost Flora Labs’ manufacturing capabilities.
“We continue to prudently manage our overhead and working capital as we expect to improve profitability going forward. With all three of our core pillars generating revenue in the second half of 2022 … we believe we have a path to profitability that few global cannabis companies can achieve in this difficult environment,” Merchan stated in August (https://cnw.fm/8HXqS).
For more information, visit the company’s website at www.FloraGrowth.com.
NOTE TO INVESTORS: The latest news and updates relating to FLGC are available in the company’s newsroom at https://cnw.fm/FLGC
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