Flora Growth Corp. Closes Acquisition of Australian Vaporizers
Flora Growth Corp. (NASDAQ: FLGC) has completed the acquisition of Australian Vaporizers Pty The deal involved exchanging 550,000 Flora common shares, valued at $0.7 million based on the closing price on June 3, 2024. The transaction closed on June 4, 2024. Australian Vaporizers, founded in 2010, is among Australia's largest online retailers of vaporizers and related accessories. The company has sold over 92,000 units to more than 30,000 active customers through B2B and direct consumer channels. Flora's CEO, Clifford Starke, highlighted that the acquisition will enhance the company's bottom line and create synergies with existing brands, particularly Vessel Brand products in Australia.
- Flora Growth's acquisition of Australian Vaporizers valued at $0.7 million.
- Australian Vaporizers has a strong market presence with over 92,000 units sold.
- The company has more than 30,000 active customers.
- Acquisition expected to drive synergies with Flora's existing brands.
- Potential for increased sales of Vessel Brand products in Australia.
- Transaction subject to working capital adjustments.
- Share dilution from issuing 550,000 common shares.
Insights
The acquisition of Australian Vaporizers by Flora Growth Corp. involves an exchange of 550,000 Flora common shares valued at
From a financial perspective, this acquisition is relatively small in absolute dollar terms but holds strategic value. Flora's ability to integrate and leverage Australian Vaporizers’ market presence will be important in determining the success of this move. Investors should watch for subsequent quarters to see how the acquisition impacts Flora’s revenue growth and profitability.
The acquisition of Australian Vaporizers by Flora Growth points to a strategic move into the expanding aromatherapy and vaporizer market in Australia. Australian Vaporizers’ established online presence and large customer base offer a solid footing for Flora to expand its reach. The move aligns with Flora's strategy of enhancing its portfolio and entering new markets. The synergies mentioned, particularly in terms of integrating Vessel Brand products, highlight Flora's intent to diversify and strengthen its market position.
For retail investors, it's important to note the growing demand for vaporizers and aromatherapy products, driven by trends in wellness and alternative treatments. The successful integration of Australian Vaporizers could position Flora as a key player in this niche market, potentially offering long-term growth opportunities.
Fort Lauderdale, Florida--(Newsfile Corp. - June 5, 2024) - Flora Growth Corp. (NASDAQ: FLGC) ("Flora" or the "Company") has entered into a share purchase agreement (the "Agreement") to acquire of all of the issued and outstanding shares of Australian Vaporizers Pty Limited ("Australian Vaporizers") in exchange for 550,000 Flora common shares, valued at
Australian Vaporizers was founded in 2010 and has become one of the largest online retailers of vaporizers, hardware, and accessories in Australia. It is an online expert for aromatherapy products, specializing in dry herb vaporizers. It has been providing vapes, accessories and knowledge to enthusiasts and newcomers alike. Its website www.australianvaporizers.com.au is a popular designation in the country with a large database of satisfied customers. Australian Vaporizers sold over 92,000 units to over 30,000 active customers through business to business and direct to consumer channels.
"In addition to quickly improving the Company's bottom line, Australian Vaporizers has the potential to drive synergies with Flora's existing portfolio of brands, including selling Vessel Brand products in Australia, which is Flora's fastest growing segment," commented Clifford Starke, Chief Executive Officer.
Powered by Shopify, Vessel Brands is a leading producer of consumer technology and accessories. Vessel's products are built better, designed smarter and inspire optimism and happiness. For more information about Compass Rise and other Vessel Brand products, visit www.vesselbrand.com.
About Flora Growth Corp.
Flora Growth Corp. is a consumer-packaged goods leader and pharmaceutical distributor serving all 50 states and 28 countries with 20,000+ points of distribution around the world. For more information on Flora, visit www.floragrowth.com.
https://www.phatebo.de/home-en
Investor Relations:
Investor Relations ir@floragrowth.com
Clifford Starke Clifford.Starke@floragrowth.com
Media:
Cautionary Statement Concerning Forward Looking Statements
This press release contains "forward looking statements," as defined by federal securities laws. Forward-looking statements reflect Flora's current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words "believe," "expect," "anticipate," "will," "could," "would," "should," "may," "plan," "estimate," "intend," "predict," "potential," "continue," and the negatives of these words and other similar expressions generally identify forward looking statements. Such forward looking statements are subject to various and risks and uncertainties, including those described under section entitled "Risk Factors" in Flora's Annual Report on Form 10K filed with the SEC on March 28, 2024, as such factors may be updated from time to time in Flora's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Flora's filings with the SEC. While forward-looking statements reflect Flora's good faith beliefs, they are not guarantees of future performance. Flora disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based on information currently available to Flora (or to third parties making the forward-looking statements).
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/211755
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