- The shares of Flora Growth Corp. (NASDAQ: FLGC) rose 43.93%. That’s why it happened.
The shares of Flora Growth Corp. (NASDAQ: FLGC) – an all-outdoor grower and maker of cannabis-derived products and brands – rose 43.93% from a previous close of $ 8.81 to $ 12.68. Investors appear to be responding positively to the Company’s release of certain financial and operating results for the 6-month period ending June 30, 2021.
Financial summary for the first semester:
– Flora Growth generated revenues of + $ 2M with a gross margin of 60% (unaudited), compared to revenues of ~ $ 100K for 2020.
– First half operating expenses amounted to $ 6 million, representing a net loss of $ 4 million (unaudited). However, these results were strongly affected by nearly $ 3M of one-time IPO-related expenses (unaudited).
– As of June 30, 2021, Flora’s cash balance was approximately $ 19 million with minimal debt (unaudited).
– After June 30, the company has recorded significant cash inflows from the exercise of warrants sold under Settlement A. And to date the company has received commitments of over $ 10 million (some unfunded), with $ 7.2 million in cash received and an additional $ 1 million pending clearing. Flora expects this amount to continue to increase over the following weeks.
Second Quarter 2021 Operational Highlights:
– Completion of a successful IPO and public listing on the Nasdaq Capital Market under the ticker symbol âFLGCâ; Flora is the first known all-outdoor grower ever to be listed on NASDAQ, the first cannabis company to be listed via a traditional IPO on a U.S. stock exchange, and has what management considers the largest licensed cultivation footprint. in Colombia.
– Announcement of the intention to purchase 100% of Koch & Gsell, manufacturer of the leading Swiss brand of hemp and tobacco pre-roll Heimat
– The company made a strategic investment of $ 2.4 million in Hoshi International, opening the distribution of Flora’s product portfolio in the European Union (EU)
– Expansion into UK and Central American markets with sales to new international distribution partners; bringing to 13 the total number of countries where Flora and its divisions currently have a product on the market
– Formation of the Flora Lab manufacturing division which operates a modern 16,000 square foot manufacturing facility and holds multiple GMP certifications with a diverse portfolio comprising over 190 products and 63 registered and licensed INVIMA (OTC) products ( FDA equivalent in Colombia).
Operational highlights after period end:
– Kasa Wholefoods., The food division of Flora, has signed a sales agreement to supply food products to Colombia’s largest consumer packaged goods (CPG) distributor, Tropi, which has more than 130,000 distribution points in 38 cities in Colombia; Kasa has since closed its first purchase order valued at around $ 1.1 million and expects this initial deal to generate additional revenue from its CBD and hemp portfolio, expecting future sales reach about $ 2 million per month.
– Announced intention to purchase 100% of Vessel Brand, an industry leader in luxury cannabis consumption technology
– Announcement of intention to form a joint venture with Avaria, a Canadian company, the manufacturer and owner of KaLaya, an award-winning pain relief cream distributed across Canada
– Following the reform of Colombian cannabis legislation aimed at improving access to cannabis products for Colombians and positioning Colombia as the leader for the supply of the global cannabis market, Flora immediately announced that ‘it had signed a letter of intent with Kiricann, an international distributor with operations in South Africa and distribution agreements in Germany and the EU, to supply its dried flowers and derivatives; In addition, the company announced plans for the manufacture, sale and distribution of CBD infused food and drink products; further plans to increase awareness of its premium brand and product portfolio due to relaxed marketing restrictions; and, finally, plans to manufacture tailor-made cannabis-based pharmaceuticals for the Colombian medical cannabis market
– Announcement of the intention of Evergreen Pharmacare, an authorized Australian importer and distributor of medical cannabis products, to supply its high-end dried flowers and derivative products to the Australian medical cannabis and over-the-counter CBD markets
– The Flora Beauty division officially launched Ã (“Awe”), its premium brand and product line designed and marketed by founding partner, trendsetter and global beauty influencer Paulina Vega
– Announced that after performing a thorough and meticulous review, it plans to move its headquarters to Miami, Florida by Q1 2022
– Continued expansion of its scientific and academic activities with the appointment of another advisor and key partnership:
– Engagement of Brigitte Baptiste as strategic advisor and conclusion of a cooperation agreement with EAN University
âThe first half of our fiscal year is marked by a number of extraordinary accomplishments from our team despite the challenges of the global pandemic. Management believes that each of our divisions has gained ground from where we started the year as we execute the strategic growth plan we set out in December 2020, positioning shareholders for future success. By the end of last year, Flora was private, largely pre-recipe, and focused primarily on Latin America; Over the past six months, Flora has completed its IPO on NASDAQ, while increasing its global distribution, revenue, and expanding its high-end portfolio of global cannabis brands and products. We have made a number of strategic hires and appointments to build a strong and highly experienced management team, while simultaneously leveraging our capital on an attractive risk-adjusted basis. We announced our intention to make multiple strategic investments and acquisitions, entered into several international sales agreements for our cannabis flower and its derivatives, and significantly expanded distribution and sales with our premium cannabis brands and products downstream in the areas pharmaceutical, natural wellness, cosmetics, food and beverage, and hemp textile segments. Going forward, we are excited about the strategic opportunities for incremental growth as we seek to leverage our globally recognized house of brands and products into new markets and categories around the world, particularly in the Americas, in the EU and Australia. In conclusion, the board of directors, management and staff of Flora would like to thank our shareholders who trust us to grow their investment and generate substantial value. We do not take this lightly and strongly believe in a strong corporate governance regime, providing full transparency regarding our efforts and activities as we continue to move forward to become the global supplier of CPG cannabis brands and products. high-end while driving revenue responsibly and strategically. growth.”
– Luis Merchan, President and CEO of Flora
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