Flora Growth Corp. (NASDAQ: FLGC) Defines Path to Profitability and Portfolio Expansion with Proposed Franchise Global Health Inc. Acquisition

• Flora Growth signed a definitive agreement with FGH to acquire 100% of all issued and outstanding shares by way of a statutory plan of agreement
• The deal is expected to close in December following the presentation of the agreement to shareholders; the acquisition will open Flora to the German and EU medical markets, increasing the company’s international revenue and providing essential distribution to German pharmacies and a growing wholesale market
• FGH’s acquisition adds to Flora’s expanding list of subsidiaries which currently comprise Vessel Brand Inc. and JustCBD, among others, and it is expected to deliver at least $3 million in annualized cost synergies within the first year
• Luis Merchan, Flora’s Chairman and CEO, has noted that he believes the company has a path to profitability that few global cannabis companies can achieve, and the acquisition shows Flora’s commitment to achieving this profitability
• The acquisition also highlights the company’s understanding of the global cannabis space, the opportunities therein, and what it would take for it to become the undisputed market leader

Flora Growth (NASDAQ: FLGC), an internationally focused cannabis builder that leverages natural, cost-effective cultivation practices to supply cannabis derivatives, is looking to grow its product portfolio and expand its market reach with the proposed acquisition of Franchise Global Health Inc. (“FGH”), a multi-national operator in the medical cannabis and pharmaceutical industry (https://cnw.fm/oVQPK).

With principal operations in Germany, FGH’s acquisition will open Flora up to the German and European Union (“EU”) medical markets, which its management notes will significantly increase the company’s commercial international revenue.

Flora signed a definitive agreement with FGH to acquire 100% of all issued and outstanding shares by way of a statutory plan of arrangement. The company expects to close the deal in December following the presentation of the agreement to shareholders. Completion of the agreement will be subject to certain closing conditions customary for transactions of this nature, including, but not limited to, approval by the Supreme Court of British Columbia.

FGH will add to Flora’s expanding list of subsidiaries comprising Vessel Brand Inc. and JustCBD, among others. It is also expected to deliver at least $3 million in annualized cost synergies within the first year, mainly in reduced corporate administrative expenses.

“Through this proposed acquisition, we are connecting our commercial infrastructure and medical cannabis product portfolio to the German and EU medical markets while gaining direct access to European pharmaceutical distributions,” noted Luis Merchan, Flora’s Growth’s Chairman and CEO.

“We believe Franchise will significantly increase our commercial international revenue and provide essential distribution to German pharmacies and a growing wholesale market,” he added.

In August, Flora released its financial results for the first half of the 2022 financial year (“H1 2022”). Most notably, the company delivered on its promise to double revenue compared to H2 2021, lauding the integration of both Vessel and JustCBD. In addition, the company’s management expressed its confidence in maintaining the current trajectory to deliver its full-year guidance due to continued growth in its House of Brands.

“We continue to prudently manage our overhead and working capital as we expect to improve profitability going forward,” noted Mr. Merchan.

“We believe we have a path to profitability that few global cannabis companies can achieve in this difficult moment. The execution of our key initiatives is a testament to our team’s ability to deliver on plan. We will continue to execute as we focus on profitability and long-term value creation,” he added (https://cnw.fm/jcgmb).

FGH’s acquisition is poised to bolster Flora’s profitability while strengthening its market presence. The move is also a testament to the company’s commitment to its vision of global market dominance. In addition, it reflects its management’s competence and understanding of what is required for the company to grow and achieve its short-term and long-term goals. Still, most importantly, it shows Fora’s understanding of the global cannabis space, the opportunities therein, and what it would take to become the undisputed market leader.

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

About HempWire

HempWire (HW) is a dedicated information provider focused on (1) aggregating hemp-related news, (2) issuing HempNewsBreaks designed to update investors on the latest developments in the hemp market, (3) enhancing corporate news releases, (4) providing full-service distribution and social media offerings to public and private client-partners and (5) designing and implementing all-inclusive corporate communication solutions. HW is strategically positioned within the rapidly expanding hemp sector with a team of journalists working to help a growing roster of public and private companies reach a wide audience of investors, consumers and members of the media. We leverage a vast network of more than 5,000 key syndication outlets to deliver unparalleled visibility, recognition and content to the hemp industry. HempWire (HW) is where HEMP news, content and information converge.

To receive instant SMS alerts, text HEMPWIRE to 21000 (U.S. Mobile Phones Only)

For more information please visit https://www.hempwire.com

Please see full terms of use and disclaimers on the HempWire website applicable to all content provided by HW, wherever published or re-published: https://www.hempwire.com/Disclaimer

Do you have a questions or are you interested in working with HW? Ask our Editor

HempWire (HW)
Denver, Colorado
www.hempwire.com
303.498.7722 Office
Editor@HempWire.net

HempWire is part of the InvestorBrandNetwork.