Flora Growth Corp.’s (NASDAQ: FLGC) Management Confident in the Company’s Short, Medium, and Long-Term Growth Prospects

  • Flora just announced the repurchase of $5 million of its outstanding common shares
  • This repurchase aligns with its overall global expansion plan, and its move to grow its market reach
  • These moves by Flora assure shareholders of the company’s commitment to driving shareholder value and exploring various opportunities to do so

On June 16, 2022, Flora Growth (NASDAQ: FLGC) announced that its Board of Directors had authorized the repurchase of up to $5 million of its outstanding common shares. This came in the wake of the expiration of a one-year lockup period for specific shareholders who had acquired shares before the company’s Initial Public Offering (“IPO”).

While making the announcement, Luis Merchan, Flora’s Chairman and Chief Executive Officer (“CEO”), noted:

“Flora continues to move assertively to execute its growth plans while simultaneously improving gross profit margins and reducing corporate overhead expenses.”

“We are confident in the company’s short, medium, and long-term growth prospects based on our strong in-market brand portfolio together with our cultivation and export capabilities in life sciences research,” he added (https://cnw.fm/678hm).

This move to repurchase shares aligns with Flora’s overall global expansion plan that has seen the company follow through with acquisitions of strategic brands and entities in the industry. For example, earlier in the year, Flora acquired 100% equity interests in Just Brands LLC and High Roller Private Label LLC, the owners of the JustCBD brand, for a consideration of $16 million in cash and 9.5 million in privately issued Flora common shares (https://cnw.fm/9QeQe).

The repurchase also aligns with the company’s move to grow its market reach, having announced the expansion of its operational footprint in Europe and the United Kingdom. This expansion would bank on JustCBD’s 79 products registered with the UK Novel Foods, allowing for the distribution of its growing house of brands.

At the beginning of the year, Flora’s management reiterated how the cannabis sector was ripe for the picking. Most notably, they noted how great brands and cost advantages are optimal traits for the company’s long-term market leadership and return on investment (“ROI”), emphasizing the opportunities ahead. This outlook is shaping the company’s decision-making process halfway into 2022, even as it seeks to aggressively grow its market reach, product line, and customer numbers. 

The global cannabidiol (“CBD”) industry is projected to post a CAGR of 21.3% over the forecast period (2021-2028), achieving a value of $47.22 billion, up from $4.9 billion. Flora looks to capitalize on this growth by making strategic acquisitions of key brands in the industry, aggressively expanding its market reach, and taking ownership of its brand, as evidenced by its recent repurchase of outstanding common shares.

“The repurchase program affords us the opportunity to increase our ownership in our portfolio of high quality brands through our shares, which in our view, are trading well below NAV,” noted Mr. Merchan.

These recent developments highlight Flora’s management’s confidence in where the company is headed and its potential for growth as the year progresses. It also assures shareholders of the company’s commitment to driving shareholder value and exploring various opportunities to do so. As such, this only emphasizes Flora’s value as a good investment.

For more information, visit the company’s website at www.FloraGrowth.com.

NOTE TO INVESTORS: The latest news and updates relating to FLGC are available in the company’s newsroom at https://cnw.fm/FLGC

About HempWire

HempWire (HW) is a dedicated information provider focused on (1) aggregating hemp-related news, (2) issuing HempNewsBreaks designed to update investors on the latest developments in the hemp market, (3) enhancing corporate news releases, (4) providing full-service distribution and social media offerings to public and private client-partners and (5) designing and implementing all-inclusive corporate communication solutions. HW is strategically positioned within the rapidly expanding hemp sector with a team of journalists working to help a growing roster of public and private companies reach a wide audience of investors, consumers and members of the media. We leverage a vast network of more than 5,000 key syndication outlets to deliver unparalleled visibility, recognition and content to the hemp industry. HempWire (HW) is where HEMP news, content and information converge.

To receive instant SMS alerts, text HEMPWIRE to 21000 (U.S. Mobile Phones Only)

For more information please visit https://www.HempWire.com

Please see full terms of use and disclaimers on the HempWire website applicable to all content provided by HW, wherever published or re-published: https://www.HempWire.com/Disclaimer

Do you have a questions or are you interested in working with HW? Ask our Editor

HempWire (HW)
Denver, Colorado
www.HempWire.com
303.498.7722 Office
Editor@HempWire.net

HempWire is part of the InvestorBrandNetwork.

Archives

Select A Month

HempWire Currently Accepts

Bitcoin

Bitcoin

Bitcoin Cash

Bitcoin Cash

Doge Coin

Dogecoin

Ethereum

Ethereum

Litecoin

Litecoin

USD Coin

USD Coin

Contact us: 303.498.7722