Flora Growth Corp. FLGC provided an update with respect to the July 5 purchase and sale agreement for the sale of its Colombian related subsidiaries and assets to a private company in consideration for CA$800,000, ($605,000).
The sale relates to all of Flora's operations in Colombia, including its interest in its 361-acre Cosechemos farm located in Giron, Colombia and its related processing facilities and inventory and all other assets relating to Flora Lab 2, Flora Lab 4 and Flora's Colombian food and beverage and consumer products business (collectively, the "Colombian assets").
The sale is expected to close by July 31. The company intends to maintain a presence in Latin America through Just Brands' distribution relationships.
"We have made several strategic changes to cut costs and streamline operations," Flora CFO Dany Vaiman stated. "These changes are projected to deliver annual cost reductions amounting to $6.1 million in cumulative annual savings when taken together with the $3.4 million in savings from the divestiture of the Colombian assets."
Flora's Business Outlook: The company's 2023 revenue guidance included certain estimates relating to the Colombian assets. Management believes such guidance should no longer be relied upon and is in the process of reevaluating such guidance. The company anticipates providing updated 2023 revenue guidance at the appropriate time.
Executive Change: Matthew Cohen, general counsel, has resigned from the company for personal reasons.
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