Flora Growth Inc. (NASDAQ: FLGC) stock declined by 13.38% at last close while the FLGC stock price plunged by 34.98 in the pre-market trading session. Flora is creating a linked, design-led union of plant-based wellness and lifestyle enterprises, one community at a time, to offer an engaging consumer experience.
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FLGC stock’ Development
The purchase of Vessel Brand by Flora Growth has been completed. Flora has purchased Vessel for a total payment of US$30 million, which includes cash and the issuing of Flora common shares, as shown below.
Vessel’s go-to-market approach for direct-to-consumer sales in the U.S. and global cannabis markets has led to substantial revenue increase since its debut in 2018. Vessel has a trailing 12-month revenue of $6.6 million, representing a 90 percent year-over-year increase. Vessel’s formed relationships with U.S. multi-state operators and Canadian licensed producers offer Flora what management believes is an essential foothold in the North American cannabis market, and Flora will invest in expanding Vessel’s market share in the U.S. and international markets.
Luis Merchan, President and CEO of Flora Growth stated that,
They are ecstatic to introduce the Vessel crew to their organization. They are great brand developers with a track history of developing businesses and grabbing market share in the fast-growing cannabis industry in the United States. They can now concentrate on executing their joint expansion strategy, as this purchase is now complete. The two companies’ integration is well started, and the Vessel team is likely to significantly improve Flora Growth’s branding and marketing function as they seek to expand their market position in the worldwide cannabis and wellness sectors.
James Choe, Founder, and CEO of Vessel commented that,
They’re excited to become a part of the Flora team and help them achieve their goal of becoming a world leader in a plant-based healthy lifestyle. Flora has made a solid platform for growth, which they are now well-positioned to benefit from in the quickly evolving cannabis market, from an unequalled cost structure to an amazing and developing brand portfolio.