- Cannabis cultivator and international brand developer Flora Growth has continued to build its revenues through accretive acquisitions during the past year and expects to see revenues continue to rise amid further M&A activity
- Flora expects to lock in its latest acquisition by the end of the month after shareholders meet to discuss the proposed deal with multi-national operator Franchise Global Health (“FGH”), which would grant Flora immediate access to Germany’s cannabis market and FGH the ability to overcome supply chain difficulties
- Flora has previously reported cooperative agreements that increase its product distribution pipeline in Europe through Switzerland and the Czech Republic
In spite of outside pressures on the cannabis sector, some analysts are predicting a reversal in the trend during the coming months (https://cnw.fm/Yg6my), and the most resourceful companies are continuing to build income channels amid the slowdown.
International cannabis cultivator, Flora Growth (NASDAQ: FLGC) has boosted its YOY revenues more than five fold since Q3 2021 thanks to its strategic acquisitions, and its ambitious growth outlook includes the establishment of a global presence in key markets while creating an ecosystem for its multiple cannabis and wellness brands.
Flora Growth’s newest effort to boost its portfolio comes in the form of an agreement to acquire multi-national operator Franchise Global Health Inc., a company that serves 1,200 pharmacies in Germany through its wholly owned subsidiaries ACA Muller and Phatebo.
Flora Growth believes the acquisition will be transformative, enabling it to connect its Colombian-grown cannabis directly with German-based pharmaceutical and medical cannabis distribution. Franchise Global Health will hold a special shareholder meeting to review the pending acquisition this month, and Flora expects the deal to close by year’s end, according to a company news release (https://cnw.fm/pqu98). [See https://cnw.fm/XUXHY for full Zacks Small-Cap Research report.]
Flora has already been making inroads into Europe thanks to a new openness to creating a framework for legal cannabis exports by Colombia’s administration.
“We are proud to help increase access to safe, legal CBD and THC to consumers all over the globe,” Flora Growth Chairman and CEO Luis Merchan stated in September following the company’s first exports of high-CBD dried cannabis flower to Switzerland and the Czech Republic (https://cnw.fm/0ykaz).
Franchise Global Health has also paired operations with strategic partnerships and investments in St. Vincent and the Grenadines, Portugal and Denmark, indicating further possibilities for expanding Flora’s distribution network.
The company’s efforts caught the eye of market analysts at year’s end, who significantly upgraded their near-term revenue forecasts while also reducing their loss estimates as the company drives toward profitability (https://cnw.fm/miiWj).
FGH CEO Clifford Starke has said he regards the merger with Flora to be the foundation of “a very sustainable business.”
“We have extremely strong revenue performance without executing on really what we’re trying to do, which is become a fully integrated medical cannabis company of high THC products,” Starke said during a webcast interview in October (https://cnw.fm/KxeZa). “We’re extremely well positioned to go past Germany into the rest of Europe. It’s very important to understand that 75 to 80 percent of the sales in Europe are accounted in Germany.”
For more information, visit the company’s website at www.FloraGrowth.com.
NOTE TO INVESTORS: The latest news and updates relating to FLGC are available in the company’s newsroom at https://cnw.fm/FLGC
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