Flora Growth Corp. (NASDAQ:FLGC) has acquired 100% of the equity interests in each of Just Brands LLC and High Roller Private Label LLC for cash consideration of $16.0 million and 9.5 million privately issued Flora common shares. Just Brands and High Roller are the owners of the JustCBD brand and associated operations.
Acquisition Highlights
- Flora expects JustCBD’s financial performance to immediately contribute to Flora’s 2022 revenues and earnings.
- The company intends to leverage synergies between its existing brand portfolio, including Vessel, Tonino Lamborghini, and Mind Naturals, with JustCBD’s extensive U.S. distribution network to further amplify revenue growth for these brands.
- With the support of Flora’s strong balance sheet, we believe JustCBD is now positioned to expand into international markets where CBD products are permissible, including Germany, Mexico, and Colombia.
- JustCBD’s database of over 300,000 customers increases Flora’s existing customer base to over 500,000 customers.
- Members of the JustCBD operations team are expected to join the Flora team as integral leaders of Flora’s U.S. expansion strategy. This includes JustCBD’s CEO Hussein Rakine, who was named to Forbes’ 2022 list of 30 Under 30 list for retail and ecommerce.
“We are thrilled to announce this news today and welcome the JustCBD team to Flora. To build such a recognizable brand in this noisy, rapid-growth market is a testament to everyone at JustCBD,” Luis Merchan, CEO of Flora. “This acquisition continues to strengthen Flora’s foothold in the U.S. wellness market as well as providing meaningful growth acceleration and delivering human capital to the Flora organization. Additionally, there is incredible opportunity to leverage our economically-advantaged cultivation to support the expansion of the JustCBD brand in the global market.”
Hussein Rakine, CEO of JustCBD commented, “Our team is incredibly excited to join Flora and rapidly expand JustCBD’s presence in new markets with new growth capital and an established international presence. Since the beginning, we have worked hard to build JustCBD into a prominent wellness brand in a hyper-growth space by delivering consistent experiences that have resulted in our loyal customer base. By combining our product portfolio with Flora’s, we believe we have an industry leading wellness offering that will thrill our existing customers and attract new ones as we reach new markets.”
Price Action
Flora Growth shares were trading 3.30% higher at $1.88 per share during Monday's pre-market sesion.
