InvestorNewsBreaks – Flora Growth Corp. (NASDAQ: FLGC) Inks Deal to Acquire Australian Vaporizer
Flora Growth (NASDAQ: FLGC), a global consumer-packaged goods leader and pharmaceutical distributor serving all 50 states and 28 countries with more than 20,000 points of distribution, has entered into a definitive agreement to acquire Australian Vaporizers Pty Limited. The agreement outlines FLGC’s intent to acquire all issued and outstanding shares of Australian Vaporizers in exchange for 600,676 Flora common shares, which were valued at $1.7 million based on the Sept. 15, 2023, closing price of Flora’s common shares. Australian Vaporizers is one of the largest online retailers of vaporizers, hardware and accessories in Australia. According to the announcement, the deal is expected to close sometime during Q4 2023 and will be immediately accretive to Flora; the company anticipates seeing annual contributions of approximately $5.2 million in revenues, $1.2 million in gross margins and $0.5 million in net income. Those numbers are based on Australian Vaporizer’s most recently completed six-month period, which ended May 31, 2023. At that time, the company reported $2.5 million in revenues, $0.6 million gross margins and $0.25 million in net income. When the transaction is complete, Australian Vaporizers is expected to have at least $0.3 million cash on hand, inventories valued at $0.8 million and working capital of $1.1 million. “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,” said Flora Growth CEO Clifford Starke in the press release. “I am intimately familiar with Australian Vaporizers’ solid track record from my tenure as a board member of Namaste Technologies. The Australian market has demonstrated impressive growth, and the acquisition of Australian Vaporizers would allow Flora to be at its forefront.”
To view the full press release, visit https://ibn.fm/FJvJA
About Flora Growth Corp.
Flora Growth is a global consumer-packaged goods leader and pharmaceutical distributor serving all 50 states and 28 countries with 20,000-plus points of distribution around the world. For more information about the company, please visit www.FloraGrowth.com.
NOTE TO INVESTORS: The latest news and updates relating to FLGC are available in the company’s newsroom at https://ibn.fm/FLGC
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