Breaking Legal News & Current Law Headlines | Daily Legal Briefing
  • Home
  • Hot Topics
  • Breaking
  • Business
  • Big Law
  • Small Law
  • Law School
  • Legal Tech
No Result
View All Result
No Result
View All Result
Breaking Legal News & Current Law Headlines | Daily Legal Briefing
No Result
View All Result
Home Business

Flora Growth Closes Acquisition of Franchise Global Health, Cementing Foothold in Germany and the European Union

Daily Legal Briefing by Daily Legal Briefing
January 14, 2023
in Business
0
Flora Growth Closes Acquisition of Franchise Global Health, Cementing Foothold in Germany and the European Union
4
SHARES
32
VIEWS
Share on FacebookShare on Twitter


The transformative acquisition is expected to connect Flora Growth’s Colombian-grown cannabis directly with German-based pharmaceutical and medical cannabis distribution.


FORT LAUDERDALE, Fla. & TORONTO–(BUSINESS WIRE)–Flora Growth Corp. (NASDAQ: FLGC) (“Flora” or the “Company”), a leading all-outdoor cultivator, manufacturer and distributor of global cannabis products and brands, announced that, on December 23, 2022, it closed the previously disclosed acquisition of all of the issued and outstanding shares of Franchise Global Health Inc. (TSXV: FGH) (“FGH”), a multi-national operator in the medical cannabis and pharmaceutical industry, with principal operations in Germany.

“We view this acquisition as transformational as Flora pursues its strategic growth plan to lead the global market for cannabis and its derivatives,” said Luis Merchan, Chairman and CEO of Flora. “Flora has now secured a crucial footprint in an established international cannabis market, providing a unique opportunity for operational synergies and diversified growth. The acquisition adds to our distribution network, expanding our client base, and increases our ability to distribute wholesale cannabis products at scale into the European Union.”

At the end of November, Flora announced it achieved revenues of $25.7 million and gross profit of $11.5 million for the nine-month period ended September 30, 2022, representing increases of 510% and 606%, respectively, year over year. As of September 30, 2022, the Company had cash of $5.9 million. On December 13, 2022, Flora raised gross proceeds of $5.0 million through a registered direct offering, further bolstering its liquidity position.

Graphic of man in suit against blue sky with white clouds. Factory in background; money sign with green grass fill in foreground. Image by Tumisu, via Pixabay.com.
Graphic of man in suit against blue sky with white clouds. Factory in background; money sign with green grass fill in foreground. Image by Tumisu, via Pixabay.com.

FGH’s revenues and gross profit for the nine-month period ended September 30, 2022 were C$42.0 million (~US$32.7 million) and C$2.8 million (~US$2.5 million), respectively. FGH’s German reportable segment earned C$0.6 million (~US$0.5 million) in net income for the same period.

FGH’s German businesses operate primarily in the pharmaceutical, medical device and medicinal cannabis import and distribution markets, servicing more than 1,200 pharmacies in Germany and providing non-cannabis medical products to 28 additional countries.

The transformative deal accelerates Flora’s expansion in Europe’s largest medical cannabis market as Germany moves toward the launch of an adult-use market estimated to be worth over $1 billion1 by 2026. The Company believes Flora and FGH’s combined wealth of knowledge and intellectual property position the Company well for the potential incoming recreational market.

“We are glad to complete this acquisition as we head into 2023. Together, we can now offer one of the world’s leading cultivators access to the burgeoning German market and establish new inroads into other markets in the European Union,” said Clifford Starke, CEO of FGH.

The medical cannabis market in Germany is valued at roughly $122 million2, with growth of ~25% in 2021 compared to 2020 and a CAGR of ~55% since 2017. An estimated 150,000 German patients benefit from medical cannabis and 90% of Germany’s population of 83 million people are covered by statutory health insurance.

About the Transaction

The transaction was consummated by way of a statutory plan of arrangement (the “Arrangement”) under the Business Corporations Act (British Columbia), pursuant to which Flora acquired all the issued and outstanding common shares of FGH in exchange for 43,525,951 Flora common shares. The Flora common shares delivered to the former shareholders of FGH are restricted from being sold for a period of ninety (90) days following the completion of the Arrangement. Effective upon the closing of the Arrangement, Mr. Starke, formerly the CEO of FGH, and Mr. Edward Woo, formerly the COO of FGH, were appointed as members of Flora’s Board of Directors. The Arrangement was approved by the Supreme Court of British Columbia and by shareholders of FGH holding in excess of 66 2/3% of the votes cast at a meeting of FGH shareholders. For further information on the Arrangement, reference is made to Flora’s current report on Form 6-K, filed today with the Securities and Exchange Commission.

About Flora Growth Corp.

Flora is building a connected, design-led collective of plant-based wellness and lifestyle brands designed to deliver the most compelling customer experiences in the world, one community at a time. As the operator of one of the largest outdoor cannabis cultivation facilities, Flora leverages natural, cost-effective cultivation practices to supply cannabis derivatives to its commercial, house of brands, and life sciences divisions. Visit www.floragrowth.com or follow @floragrowthcorp on social media for more information.

About Franchise Global Health Inc.

Franchise Global Health Inc., through its subsidiaries, is a multi-national operator in the medical cannabis and pharmaceutical industries, with principal operations in Germany and with operations, assets, strategic partnerships and investments internationally. FGH’s business objective is to develop a fully-integrated, leading European medical cannabis business, with the goal of providing high-quality pharmaceutical-grade medical cannabis to distribution partners and, ultimately, to patients, at competitive prices.



Click to Read Original Article

Previous Post

Plaintiffs’ Attorney Shares What It’s Like To Hold Companies Responsible For The Opioid Epidemic

Next Post

Law Firm Partnership Is Not As Diverse As It Should Be

Daily Legal Briefing

Daily Legal Briefing

The latest breaking legal news from across World all in one place.

Related Posts

Rebecca E. Shope to Serve on the 2023 Leadership Council on Legal Diversity 
Business

Rebecca E. Shope to Serve on the 2023 Leadership Council on Legal Diversity 

by Daily Legal Briefing
February 4, 2023
5 People You Need to Hire for Your Law Firm
Business

How to Optimize the Law Firm Sales Process

by Daily Legal Briefing
February 3, 2023
DMEC and Sedgwick Release “Long COVID: Assessing and Managing Workforce Impact” 
Business

DMEC and Sedgwick Release “Long COVID: Assessing and Managing Workforce Impact” 

by Daily Legal Briefing
February 2, 2023
The Importance of Online Presence for a Law Firm
Business

2023 Predictions for the Legal Industry

by Daily Legal Briefing
February 2, 2023
5 Business Issues That Require Legal Help
Business

5 Business Issues That Require Legal Help

by Daily Legal Briefing
February 1, 2023
Next Post
Law Firm Partnership Is Not As Diverse As It Should Be

Law Firm Partnership Is Not As Diverse As It Should Be

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Premium Content

This Week in Rideshare: Alto, Cancellations and Tips

This Week in Rideshare: Alto, Cancellations and Tips

July 23, 2022
What Does 2022 Have In Store For Blockchain, Crypto Assets, DeFi, And NFTs?

Blockchain: The Future Of The Legal Profession

October 18, 2022
Magic Circle Firm’s London Office Welcomes Big-Time Bonuses To Compete With U.S. Firms

2021’s Been Very Good To Biglaw

December 2, 2021

Browse by Category

  • Big Law
  • Breaking
  • Business
  • Hot Topics
  • Law School
  • Legal Tech
  • Small Law

About US

Breaking Legal News & Current Law Headlines | Daily Legal Briefing.
Online coverage of breaking legal news and current law headlines from around the US. Top stories, videos, insight, and in-depth analysis.

Categories

  • Big Law
  • Breaking
  • Business
  • Hot Topics
  • Law School
  • Legal Tech
  • Small Law

Recent Updates

  • Baker McKenzie Investigating Racism Claims; Partner Steps Away From Leadership Role
  • This Biglaw Firm Has The Urge To Merge, But Can’t Find A Willing Partner
  • Why The Legal Work Experience Is Broken And How You Can Do Better

© 2021 Daily Legal Briefing | Breaking Legal News & Current Law Headlines

No Result
View All Result
  • Contact Us
  • Home

© 2021 Daily Legal Briefing | Breaking Legal News & Current Law Headlines

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?