Flora Growth Prices $30 Million Offering

Flora Growth Corp. (NASDAQ: FLGC) priced its underwritten public offering of 10,000,000 units that are intended to raise $30 million. The company had recently announced its plans to buy the premium accessory company Vessel for $30 million. Each Unit consists of one common share and one-half warrant, each whole Unit Warrant entitling the holder thereof to purchase one Common Share. The Units are being sold at a public offering price of $3.00 per Unit. The Unit Warrants will have an exercise price of $3.75 per share, will be immediately exercisable and will expire five years from the date of issuance. The offering is expected to close on November 23, 2021, subject to customary closing conditions.

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. 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 LPs 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.

A.G.P./Alliance Global Partners is the sole book-running manager for the public offering and BMO Capital Markets and Roth Capital Partners are acting as co-managers. MKM Partners is acting as a financial advisor to the Company. Flora has granted the underwriters a 45-day option to purchase up to 15% of the total number of Units to be offered by us pursuant to this offering (excluding Units subject to this option), solely for the purpose of covering over-allotments, if any, at the public offering price less the underwriting discount.

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