Flora Growth Corp. Integrates Sezzle Financing Option for JustCBD and Vessel Purchases Across U.S. E-Commerce Platforms

Rhea-AI Summary

Flora Growth Corp. (NASDAQ: FLGC) has integrated Sezzle, a leading 'buy now, pay later' (BNPL) platform, into its U.S. e-commerce platforms for JustCBD and Vessel. This move allows consumers to finance their purchases, making Flora's products more accessible. JustCBD offers lab-tested CBD products, while Vessel provides cannabis accessories with high gross margins and growth rates.

Sezzle enables consumers to split purchases into multiple payments, offering increased financial flexibility. This partnership aligns with Flora's commitment to enhancing customer experience and comes amid growing demand for flexible payment options. The BNPL market in the U.S. is expected to exceed $100 billion by 2025, according to E-Marketer.

Positive

• Integration of Sezzle BNPL platform into U.S. e-commerce platforms for JustCBD and Vessel
• Potential for increased product accessibility and sales through flexible payment options
• Vessel brand reported to have highest gross margins and growth rates within Flora group
• Alignment with growing consumer demand for flexible payment options in the U.S. market

Negative

• None.

Insights

Financial Analyst

The integration of Sezzle's BNPL option into Flora Growth's e-commerce platforms is a strategic move to boost sales and market reach. By offering flexible payment options, Flora could potentially increase conversion rates and average order values. The BNPL market's projected growth to $100 billion by 2025 suggests significant revenue potential. However, it's important to monitor the impact on profit margins, as BNPL services typically charge merchants a fee. While this move may enhance short-term sales, investors should watch for its effect on long-term profitability and customer retention. The focus on high-margin brands like Vessel is promising, but the overall financial impact remains to be seen.

Market Research Analyst

Flora's partnership with Sezzle taps into the growing consumer demand for flexible payment options, potentially expanding their customer base. This move could be particularly effective in attracting younger demographics who are more likely to use BNPL services. The integration across both JustCBD and Vessel brands shows a cohesive strategy to enhance accessibility. However, it's important to note that while BNPL can drive sales, it may also increase the risk of returns and potentially affect customer lifetime value. Investors should monitor how this impacts customer acquisition costs and retention rates over time. The success of this strategy will largely depend on Flora's ability to balance increased sales with responsible lending practices.

Legal Expert

The integration of Sezzle into Flora's e-commerce platforms raises some regulatory considerations. While BNPL services are currently less regulated than traditional credit options, there's growing scrutiny from financial regulators. Investors should be aware of potential future regulatory changes that could impact this business model. Additionally, as Flora operates in the CBD industry, which faces its own regulatory challenges, the company must ensure compliance with both financial and cannabis-related regulations. This includes proper disclosures, age verification and adherence to state-specific CBD laws. While the partnership may boost sales, it also increases Flora's exposure to regulatory risks that need careful management.

Fort Lauderdale, Florida--(Newsfile Corp. - September 19, 2024) - Flora Growth Corp. (NASDAQ: FLGC) (FSE: 7301) ("Flora" or the "Company") is pleased to announce the integration of Sezzle, a leading "buy now, pay later" (BNPL) platform into its U.S. e-commerce platforms for JustCBD and Vessel. This payment option allows consumers to finance their purchases, making Flora's products more accessible to a broader audience.

JustCBD, a renowned brand in Flora's portfolio, has built a strong reputation for delivering quality, lab-tested CBD products. With offerings ranging from edibles to tinctures to skincare products, JustCBD aims to bring the benefits of CBD to the mainstream consumer. The brand's mission is to help people relax, rejuvenate, and enjoy life, and now with Sezzle, it becomes easier for customers to integrate these products into their daily routines.

Vessel, another standout brand within Flora, with the highest gross margins and growth rates in the Flora group of companies, offers cannabis accessories, including vaporizers, stylish batteries, and storage solutions. Vessel's products are crafted with design, performance, and user experience in mind, positioning the brand at the intersection of technology and lifestyle. The introduction of Sezzle's financing option supports Vessel's desire to enhance accessibility and the user experience.

Sezzle, a leading BNPL provider, offers consumers the ability to split purchases into a series of payments. With millions of users across the U.S., Sezzle has established itself as a trusted and flexible alternative to traditional payment methods, empowering shoppers with increased financial flexibility. By incorporating Sezzle into its e-commerce platforms, Flora reinforces its commitment to providing exceptional service with improved purchasing options for consumers.

"We are proud to partner with Sezzle to offer their flexible payment solutions to our U.S. consumers. Whether purchasing CBD products from JustCBD or accessories from Vessel, our customers now have the option to shop on their terms," said Clifford Starke, Chairman and Chief Executive Officer. "This integration not only makes our products more accessible but also aligns with our purpose of elevating the customer experience across all of our platforms."

This partnership comes at a time when consumer demand for flexible payment options is growing rapidly. According to E-Marketer, the BNPL market in the U.S. is expected to surpass $100 billion by 2025, driven by consumer preference for more budget-friendly ways to shop. Sezzle's integration helps Flora tap into this growing trend, providing customers with greater purchasing power and convenience.

About Flora Growth Corp.

Flora Growth Corp.'s mission is to become the leading NASDAQ small-cap international cannabis company. FLGC is a cannabis-focused 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://justcbdstore.com/

https://www.vesselbrand.com/

https://justcbdstore.uk/

https://www.phatebo.de/home-en

https://www.australianvaporizers.com.au/

Investor Relations:

Investor Relations ir@floragrowth.com

Clifford Starke Clifford.Starke@floragrowth.com

Media:

media@floragrowth.com

Cautionary Statement Concerning Forward-Looking Statements

This press release contains "forward-looking statements," as defined by U.S. 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 10-K filed with the United States Securities and Exchange Commission (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/edgar. 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/223806

FAQ

What new payment option has Flora Growth Corp. (FLGC) integrated into its U.S. e-commerce platforms?

Flora Growth Corp. has integrated Sezzle, a 'buy now, pay later' (BNPL) platform, into its U.S. e-commerce platforms for JustCBD and Vessel brands.

How does the Sezzle integration benefit Flora Growth Corp. (FLGC) customers?

The Sezzle integration allows customers to finance their purchases by splitting them into multiple payments, making Flora's products more accessible and providing greater financial flexibility.

Which Flora Growth Corp. (FLGC) brands are affected by the Sezzle integration?

The Sezzle integration affects JustCBD, which offers CBD products, and Vessel, which provides cannabis accessories, both brands under Flora Growth Corp.

What is the projected growth of the BNPL market in the U.S., according to Flora Growth Corp.'s (FLGC) announcement?

According to E-Marketer data cited in the announcement, the BNPL market in the U.S. is expected to surpass $100 billion by 2025.