FORT LAUDERDALE, Fla. & TORONTO–(BUSINESS WIRE)–Flora Growth Corp. (NASDAQ: FLGC) (“Flora” or the “Company”), an all-outdoor cultivator, manufacturer and distributor of global cannabis products and brands, announced today that its wholly-owned subsidiary, Just Brands LLC, has acquired substantially all of the assets pertaining to the brand No Cap Hemp Co. (“No Cap”). The Company acquired the No Cap assets without paying any consideration at closing. Instead, Flora will pay to the sellers, 10% of the gross revenue received from the sale of No Cap products up to a maximum of $2M.
“This transaction will allow Flora to immediately benefit from a profitable, cash flow positive and growing business,” said Luis Merchan, Chairman and CEO of Flora Growth. “This strategic acquisition demonstrates our disciplined capital allocation approach that is consistent with both short-term needs and long-term vision as a leading global cannabis company. We look forward to increasing our product offering through this transaction while broadening our sales team in the process.”
The No Cap acquisition will fast-forward the introduction of high-quality flower and prerolls to Flora’s growing product portfolio as well as smokeables into JustBrand’s product portfolio. JustBrands will develop and further expand on their flower and smokeable line as well as distribute the No Cap brand into Flora’s ~14,000 points of distribution.
The No Cap acquired assets are expected to add approximately 75 SKUs to Flora’s product portfolio as well as the “No Cap” and “Moonblunt” trademarks. No Cap’s gas infusion technology should also complement Flora Labs’ manufacturing capabilities.
“No Cap’s unique product offering coupled with JustCBD’s robust distribution positions Flora to be the leader in the alternative cannabinoid segment,” Merchan added.
Flora Growth recently reported H1 2022 financial results, boasting a revenue increase to USD$ ~15 million, up 604% from H1 2021 and 117% from H2 2021, driven by the Company’s diverse house of brands.
About Flora Growth Corp.
Flora is building a connected, design-led collective of plant-based wellness and lifestyle brands, designed to deliver the most compelling customer experiences in the world, one community at a time. As the operator of one of the largest outdoor cannabis cultivation facilities, Flora leverages natural, cost-effective cultivation practices to supply cannabis derivatives to its commercial, house of brands, and life sciences divisions. Visit www.floragrowth.com or follow @floragrowthcorp on social media for more information.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains ‘‘forward-looking statements,’’ as defined by federal securities laws. Forward-looking statements reflect Flora’s current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words “believe,” “expect,” “anticipate,” “will,” “could,” “would,” “should,” “may,” “plan,” “estimate,” “intend,” “predict,” “potential,” “continue,” and the negatives of these words and other similar expressions generally identify forward looking statements. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled “Risk Factors” in Flora’s Annual Report on Form 20-F filed with the SEC on May 9, 2022, as such factors may be updated from time to time in Flora’s periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Flora’s filings with the SEC. While forward-looking statements reflect Flora’s good faith beliefs, they are not guarantees of future performance. Flora disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to Flora (or to third parties making the forward-looking statements).