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.
German cannabis legalization will be one of the many hot topics at the Benzinga Cannabis Capital Conference which returns to Florida this April 16-17.
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.
The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.
Get your tickets now on bzcannabis.com – Prices will increase very soon!
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The Benzinga Cannabis Capital Conference is coming to Florida
The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.
Get your tickets now on bzcannabis.com – Prices will increase very soon!