Flora Growth Corp. (NASDAQ: FLGC) is buying Vessel Brand Inc. in a deal valued at $30 million. Vessel is known for its unique lineup of high-end dry-herb accessories and vape pen batteries and bespoke product programs for brands. Flora said these high-margin products, along with its development pipeline, are expected to drive incremental revenue and market share growth in new and existing categories.
“The Flora team has been working diligently to execute on our various business initiatives and the signing of this agreement represents another significant step forward for the Company in 2021,” commented Luis Merchan, President and CEO of Flora Growth. “We are incredibly excited to have reached an agreement to add Vessel to the Flora portfolio. Not only does Vessel have an exceptional product line with strong revenue growth, but its leadership team is second to none. Integration plans with the Vessel team are already well advanced and we expect step-change improvements to the marketing and sales strategies for our core consumer brands like Stardog and Mind Naturals, as well as new brand development in support of our global growth initiatives.”
Vessel will receive $8 million in cash and the rest in Flora stock. Flora has also noted that Vessel has established relationships with U.S. multi-state operators and Canadian LP’s who seek access to Vessel’s premium technology offering through their white labeling business. Headquartered in Carlsbad, California, Vessel will serve as a key component of Flora’s North American cannabis strategy across its entire product portfolio.
“As Vessel, and as brand builders in nearly every sector, our promise has been to create unparalleled experiences – we are looking forward to continuing to deliver on that promise with Flora,” said James Choe, Founder and CEO of Vessel. “Flora is positioned to be a global leader in plant-based health and wellness by redefining the traditional narrative of a cannabis company. With unrivaled economies in the supply chain, a diverse brand portfolio roadmap, and most importantly a team built to meet the challenges of the industry, we see significant opportunities ahead.”
Exports Looking Up
Recently, Flora said that it received the Good Agricultural and Collection Practices (“GACP”) certification by the Control Union Medical Cannabis Standard (“CUMCS”). Paired with the recent Colombian law change, Flora may now export its high-quality dry flower to international GMP active pharmaceutical ingredient producers or to markets where flower can be imported.
“In advance of this milestone, our team has signed several LOI’s for the sale and distribution of dry flower and derivative products to several international jurisdictions, including the EU, Australia, and Latin America. We are now in the position to unlock the significant potential from Cosechemos as we continue building our global distribution network,” said Jason Warnock, Chief Revenue Officer of Flora Growth. “Our team believes this certification demonstrates our ability to offer high-quality output, while also serving as an important precursor to GMP certification so that we can produce pharmaceutical-grade cannabis products and cannabinoid-based active pharmaceutical ingredients.”