- No Cap Hemp Co., an emerging brand in the hemp flower market, will diversify Flora’s brand portfolio and product offerings
- The acquisition provides the opportunity to expand Flora Growth Corp.’s (NASDAQ:FLGC)s distribution foothold in the US market, with a unique collection of products with strong revenue growth potential
- Deal offers Flora Growth Corp. (NASDAQ:FLGC) an immediate revenue stream and enhances manufacturing capabilities
FORT LAUDERDALE, Fla. & TORONTO – Flora Growth Corp. (NASDAQ:FLGC) (the “Company” or “Flora”), 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 $2M.
“This transaction will allow Flora Growth Corp. (NASDAQ:FLGC) to immediately benefit from a profitable, cash flow positive, and growing business,” said Luis Merchan, Chairman and CEO of Flora Growth Corp. (NASDAQ:FLGC). “This strategic acquisition demonstrates our disciplined capital allocation approach that is consistent with both short-term needs and long-term vision as a leading global cannabis company. We look forward to increasing our product offering through this transaction while broadening our sales team in the process.”
The No Cap acquisition will fast-forward the introduction of high-quality flowers and prerolls to Flora Growth Corp.’s (NASDAQ:FLGC) growing product portfolio as well as smokeables into JustBrand’s product portfolio. JustBrands will develop and further expand on their flower and smokeable line as well as distribute the No Cap brand into Flora’s ~14,000 points of distribution.
The No Cap acquired assets are expected to add approximately 75 SKUs to Flora Growth Corp.’s (NASDAQ:FLGC) product portfolio as well as the “No Cap” and “Moonblunt” trademarks. No Cap’s gas infusion technology should also complement Flora Labs’ manufacturing capabilities.
“No Cap’s unique product offering coupled with JustCBD’s robust distribution positions Flora Growth Corp. (NASDAQ:FLGC) to be the leader in the alternative cannabinoid segment,” Merchan added.
Flora Growth Corp. (NASDAQ:FLGC) recently reported H1 2022 financial results, boasting a revenue increase to USD$ ~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 Growth Corp. (NASDAQ:FLGC) 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 Growth Corp. (NASDAQ:FLGC) 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 Growth Corp.’s (NASDAQ:FLGC) 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 Growth Corp.’s (NASDAQ:FLGC) 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 Growth Corp.’s (NASDAQ:FLGC) 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 Growth Corp.’s (NASDAQ:FLGC) filings with the SEC. While forward-looking statements reflect Flora Growth Corp.’s (NASDAQ:FLGC) good faith beliefs, they are not guarantees of future performance. Flora Growth Corp. (NASDAQ:FLGC) 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 Growth Corp. (NASDAQ:FLGC) (or to third parties making the forward-looking statements).
SOURCE Flora Growth Corp. (NASDAQ:FLGC)
