Flora Growth Archives - Green Market Report

Flora Growth Corp. (NASDAQ: FLGC)  reported its financial results for the fiscal year ended December 31, 2021 with total revenue of approximately $9.0 million. The net loss for the year was $21 million, which increased over the previous year’s net loss of $14 million. Revenue for the period was significantly higher when compared to the prior year, primarily reflecting that 2021 was Flora’s first full year as a revenue-generating company, which included the company’s initial public offering on the Nasdaq Capital Market in May 2021.

Flora Growth reiterated its guidance of $35 million to -$45 million in 2022, which would realize projected revenue growth of 288% – 400% year over year. The company said it would begin distributing globally high-THC and high-CBD flower in the third quarter of 2022.

“Fiscal year 2021 was a foundational year for our company as we closed our first full year of revenues. In 2022 we anticipate accelerating revenue growth as we activate our Wholesale and Life Sciences growth pillars, while fueling expansion in our global House of Brands,” said Luis Merchan, Chairman and CEO of Flora. “We are proud of the milestones we achieved in 2021, including the completion of key strategic infrastructure projects, the strengthening of our balance sheet and the deployment of our M&A strategy. In 2022, we continue to execute on our plan, highlighted by the acquisition of JustCBD, a leading consumer wellness brand. This acquisition increased Flora’s footprint to over half a million consumers and 14,000 retail stores in the United States. The transaction is already proving accretive as Flora’s unaudited revenues for April represent our strongest revenue month since inception.”

Merchan added, “The completion of our cultivation and extraction facilities has positioned Flora for success in this rapidly evolving industry, as we satisfied the requirements for the cultivation, transformation and export of up to 43.6 tonnes of THC cannabis flower. And in our Life Sciences pillar, we look forward to potential commercial distribution of pharmaceutical-grade products based on the research of Dr. Annabelle Manalo-Morgan.”

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.