Flora Growth Stock Takes A Plunge On Announcing $5M Registered Direct Offering

Flora Growth Corp. FLGC, has entered into securities purchase agreements with institutional investors for the purchase and sale of 12.5 million of the company’s common shares, no par value, pursuant to a registered direct offering, and warrants to purchase up to 12.5 million common shares. The combined purchase price for one common share and one warrant will be $0.4. The warrants will have an exercise price of $0.4 per common share, will be exercisable immediately following the date of issuance and will expire five years from the initial date of issuance.

The aggregate gross proceeds from the offering will be approximately $5 million before deducting fees and other estimated expenses. The company expects to use the net proceeds from the offering for:

  • Capital expenditures;

  • To increase operating capacity;

  • For working capital;

  • For other general corporate purposes.

The offering is expected to close on or about December 13, 2022, subject to the satisfaction of customary closing conditions.

A.G.P./Alliance Global Partners is acting as the sole placement agent for the offering.

The company has also amended the terms of the warrants issued to certain institutional investors in the November 2021 public underwritten offering that are also purchasing shares in this offering to reduce the exercise price of such warrants to $0.4.

Price Action

Flora Growth shares were trading 16.86% lower at $0.3699 per share at the time of writing Friday morning.

Get your daily dose of cannabis news on Benzinga Cannabis. Don’t miss out on any important developments in the industry.

Photo: Benzinga; Sources: courtesy of Kindel Media via Pexels

Related News

Flora Growth Shares Trading Higher On Reported Q3 Revenue Growth Of 414% YoY

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CannabisNewsPenny StocksMarketsA.G.P./Alliance Global Partnerspremium
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

The Top Cannabis Event In New Jersey

Join the Benzinga Cannabis Market Spotlight in New Jersey on June 17th! Grow your business, raise money and capitalize on the booming NJ recreational market. Don’t miss this must-attend event in New Brunswick. Secure your tickets now. Very few spots are left. Use the code "JAVIER20" for 20% off!


Loading...