StaffMay 11, 2021
Flora IPO
Flora Growth Corp. (NASDAQ: FLGC) priced its initial public offering of 3,333,333 shares of its common stock, at the high end of the proposed price range of $5.00 per share to the public for a total of US$16,666,665 of gross proceeds to the company. Flora Growth is a cannabis company that says it will leverage natural, cost-effective cultivation practices to supply cannabis derivatives to its diverse business divisions of cosmetics, hemp textiles, and food and beverage. Flora said it strives to market a higher-quality premium product at below-market prices. By prioritizing natural ingredients and value-chain sustainability across its portfolio. The common stock is expected to begin trading on the Nasdaq Capital Market today under the symbol “FLGC.” The offering is expected to close on May 13, 2021, subject to customary closing conditions.
True Leaf
True Leaf Brands Inc. (OTC Pink: TRLFF) (FSE: TLAA) has launched both a traditional private placement and an equity crowdfunding offering. The company plans to use the proceeds from both offerings to execute its strategic plan to become the industry’s leading provider of seed-to-shelf solutions for micro-cultivators. The company said it planned the dual offering so that institutional investors, plus the craft cannabis community, and the general public would have the opportunity to invest.
The company said in a statement that it will offer for sale up to a maximum of 25 million units at $0.40 CAD per Unit. Each Unit will consist of one common share and one-half of one common share purchase warrant. Each Warrant shall be exercisable for one Common Share at an exercise price of $0.60 CAD for a period of 24 months following the Closing Date (as defined below). The Warrants are subject to accelerated expiry in the event the closing price of the common shares of the Company on the Canadian Securities Exchange is $0.90 CAD or more for a period of ten consecutive trading days on or after the date which is four months and one day from the date of issuance.
“We’re celebrating B.C.’s rich history of growing quality cannabis – the world-renowned ‘BC Bud.’ By supporting micro-cultivators and giving the public a chance to become owners in our company, the entire craft cannabis community benefits,” said True Leaf CEO Darcy Bomford. “True Leaf’s model is focused on helping micro-cultivators navigate the journey to the regulated retail market so they can showcase their brand and provide consumers with the product they want.” True Leaf is supporting the craft cannabis community by partnering with micro-cultivators to provide the small-batch, premium product consumers are looking for.
Holistic Industries
Privately-owned Holistic Industries raised $55 million in the form of a convertible note. The company said that the proceeds from the oversubscribed offering, would be used to drive expansion into newly licensed markets, including Missouri and West Virginia, expansion into additional markets, M&A activity the company is currently pursuing, as well as launches of new brands and product innovations.
“We are the largest remaining private MSO operating in the market today, and we see tremendous opportunity ahead for us and our investors,” said Josh Genderson, CEO of Holistic Industries. “With this latest round of funding, we will continue our strategic expansion and continue to develop the operational scale and managerial excellence that makes us the best place to work, shop and invest.”
Holistic Industries has over 600 employees and over 500,000 square feet of growing/processing facilities in eight regionally concentrated states. Between 2018 – 2020, Holistic Industries said it had a revenue CAGR of 146% and is projected to more than double its revenue again in 2021. The company also has a growing and profitable Greenhouse of Brands for every type of cannabis consumer including recent launches of Do Drops, Garcia Hand Picked and Strane in strategic markets. In the first quarter, Holistic Industries opened three new Liberty dispensaries in California and Pennsylvania and has plans to open several additional retail locations and grow/processing facilities later this year.
