Just Brands LLC, a wholly-owned subsidiary of Flora Growth Corp. FLGC, has acquired substantially all of the assets pertaining to the brand No Cap Hemp Co. The company acquired the No Cap assets without paying any consideration at closing. Instead, Flora will pay to the sellers, 10% of the gross revenue received from the sale of No Cap products up to a maximum of $2 million.
“This transaction will allow Flora to immediately benefit from a profitable, cash flow positive and growing business,” stated Luis Merchan, chairman and CEO of Flora Growth. “This strategic acquisition demonstrates our disciplined capital allocation approach that is consistent with both short-term needs and long-term vision as a leading global cannabis company. We look forward to increasing our product offering through this transaction while broadening our sales team in the process.”
The No Cap acquisition will fast-forward the introduction of quality flower and prerolls to Flora’s growing product portfolio as well as smokeables into JustBrand’s product portfolio. JustBrands will develop and further expand on their flower and smokeable line as well as distribute the No Cap brand into Flora’s ~14,000 points of distribution.
The No Cap acquired assets are expected to add approximately 75 SKUs to Flora’s product portfolio as well as the “No Cap” and “Moonblunt” trademarks. No Cap’s gas infusion technology should also complement Flora Labs' manufacturing capabilities.
Flora Growth recently reported H1 2022 financial results, boasting a revenue increase to $14.9 million, up 604% from H1 2021 and 117% from H2 2021, driven by the company’s diverse house of brands.
Meet Flora Growth’s chairman and CEO Luis Merchan and a slew of other cannabis execs, entrepreneurs, CEOs, investors, etc. at the September Benzinga Cannabis Capital Conference, Sept. 13-14 in Chicago. Get your tickets HERE and reserve your spot at the Palmer House Hotel HERE.
Photo: Benzinga; Sources: courtesy of jarmoluk and lindsayfox via Pixabay
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