Flora Growth Corp. (NASDAQ: FLGC) shares have surged by a notable 8.18% in the US market, concluding the preceding session at $2.38. This upward movement in FLGC stock followed a strategic equity maneuver.
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Flora Growth (FLGC) recently disclosed the pricing of its underwritten public offering, comprising 1.7 million common shares, with an aggregate gross value of about $3.23 million. The Company’s Chief Executive Officer, Clifford Starke, alongside an existing investor, have committed to acquiring Common Shares in the Offering, facilitated by Aegis Capital Corp.
The proceeds from this Offering are earmarked for general corporate purposes and working capital needs, elucidating Flora Growth’s strategic intent. The transaction is slated to be finalized on or around April 8, 2024, contingent upon the fulfillment of customary closing stipulations.
In addition to this financial initiative, Flora Growth has forged a binding Letter of Intent to secure the acquisition of TruHC pharma GmbH through an all-stock arrangement. The deal entails exchanging 2,770,562 Flora common shares, valued at $6.4 million, based on the closing market price of Flora Growth shares on March 28, 2024, which stood at $2.31 per share.
The initial phase of this transaction is anticipated to conclude in the second quarter of 2024. Flora’s subsidiaries, operational in Germany since 2017, garnered the inaugural medical cannabis license in the country and facilitated the first gram of medical cannabis sale. By integrating TruHC into its fold, Flora consolidates its leadership in the burgeoning German and European cannabis markets.
This acquisition fortifies the existing successful collaboration between Flora and TruHC under the Flora brand, offering the potential to unlock enhanced economic value through future distribution channels across Germany and Europe.
Leveraging TruHC’s robust German network and state-of-the-art EU-GMP production facility, the amalgamated entity is poised to emerge as the premier supplier of cannabis products in Germany. In addition to maximizing the benefits of Germany’s cannabis legislation, Flora plans to touch on many vertical markets within the medical and recreational cannabis markets.
