Flora Growth's Stock Trading Higher On Pricing $3.2M Public Offering Of Common Shares

Flora Growth Corp. FLGC announced on Thursday the pricing of its underwritten public offering of 1.7 million common shares for aggregate gross proceeds of roughly $3.23 million.

Clifford Starke, the company's CEO, and an existing investor have agreed to purchase, and have been allocated by Aegis Capital Corp. common shares in the offering.

Flora said it will use the net proceeds from the transaction, which is expected to close on or about Monday, April 8 for general corporate and working capital needs.

The move came shortly after the company’s recent move to further cement its global footprint via acquisition in Germany.

The company, through its wholly-owned subsidiaries, has been active in Germany since 2017, revealed last week its plans to launch a cannabis home grow kit and start-up material seeds and cuttings in the European country as it enters the first phase of new recreational cannabis legalization law.

German cannabis law that went into effect this past Monday, April 1, allows adults over 18 in Germany to legally possess up to 25 grams of dried cannabis and cultivate up to three marijuana plants at home.

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Flora said on Monday it plans to acquire TruHC Pharma GmbH in an all-stock deal in exchange for 2,770,562 of its common shares, valued at $6.4 million based on the closing price of the Flora Growth shares on March 28, 2024, of $2.31 per share.

"The acquisition of TruHC is expected to provide Flora with the runway it needs to maximize the benefits of Germany's cannabis legislation,” Starke said. “We intend to touch on many verticals in the medical and recreational cannabis realms in Germany.”

Aegis Capital Corp. is the sole book-running manager for the offering announced on Thursday. Dorsey & Whitney LLP is acting as counsel to the Company. Kaufman & Canoles, P.C. is acting as counsel to Aegis Capital Corp.

The Canadian-based company produces cannabinoid organic oils, infused food and beverage, pharmaceutical grade, medical and cosmetic-grade derivatives. It serves all 50 U.S. states and 28 countries with over 20,000 points of distribution around the world.

FLGC Price Action

Flora Growth's shares traded 11.3636% higher at $2.45 per share at the time of writing on Friday morning.

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