Flora Growth Corp. FLGC confirmed Wednesday it has signed a definitive agreement with respect to the previously announced acquisition of 100% of Vessel Brand Inc. Under the deal, upon the closing of the transaction, Flora will acquire Vessel for total consideration of $30 million in cash and stock.
The total purchase price of $30 million will consist of $8 million in cash and 4.56 million privately issued Flora common shares.
Certain Vessel shareholders who obtain Flora shares under the transaction will have to sign 6-month lock-up agreements. The closing, which is subject to standard closing conditions is projected to take place in mid-November.
“We are incredibly excited to have reached an agreement to add Vessel to the Flora portfolio,” Luis Merchan, president and CEO of Flora Growth stated. “Not only does Vessel have an exceptional product line with strong revenue growth, but its leadership team is second to none. Integration plans with the Vessel team are already well advanced and we expect step-change improvements to the marketing and sales strategies for our core consumer brands like Stardog and Mind Naturals, as well as new brand development in support of our global growth initiatives.”
The cannabis consumer-focused company was launched in 2018 and has
seen notable revenue growth year-over-year. Vessel has a unique lineup of high-end dry-herb accessories and vape pen batteries, bespoke product programs for brands and decades of go-to-market experience. The company aims to make every experience expressive and personal.
Flora noted, that the addition of Vessel is the key part of its North American cannabis strategy across its entire product portfolio.
The acquisition of Vessel is also expected to strengthen Flora’s executive leadership team with the addition of the Vessel professionals including founder and CEO, James Choe, CFO, Garrett Potter, VP of marketing, Jessie Casner and VP of performance, Jason Choe.
Flora Growth’s shares were trading 0.45% higher at $4.41 at the time of writing on Wednesday mid-morning.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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