Flora Growth Corp. (NASDAQ:FLGC), a pharmaceutical preparations company currently trading at $1.22 per share, disclosed in a recent SEC filing that it has awarded key members of its team with restricted stock awards (RSAs) and stock appreciation rights (SARs).
The grants were made on Monday, under the company's 2022 Incentive Compensation Plan. According to InvestingPro analysis, the company's stock has experienced significant volatility, with a 27.8% decline in the past week, though analysts expect sales growth in the current year.
The company's CEO, Clifford Starke, received the largest allocation with 900,000 RSAs, while Executive Chairman Sammy Dorf was granted 250,000 RSAs. Additional grants were made to Director Edward Woo and various consultants, totaling 1,235,000 RSAs.
These awards vest immediately, suggesting a move to incentivize and retain top leadership and talent within the organization. With a market capitalization of just $16.3 million and revenue of $64.15 million in the last twelve months, the company trades at what InvestingPro identifies as a low revenue valuation multiple.
In addition to RSAs, Flora Growth issued SARs to several executives, including Chief Financial Officer Dany Vaiman, who received 372,500 SARs, and Directors Harold Wolkin and Manfred Leventhal, with 30,000 and 5,000 SARs respectively. Employees were also granted a total of 32,500 SARs. The exercise price for all SARs is set at $1.30, with an expiry date 10 years from the grant date, providing long-term incentives for the recipients.
The SARs allow the holders to benefit from the appreciation of the company's stock price over a set exercise price, reflecting a performance-based incentive structure meant to align the interests of the executives with those of the shareholders.
The SEC filing also includes references to the formal agreements governing these awards, further detailing the conditions and terms under which the RSAs and SARs are granted.
This move by Flora Growth comes as part of its broader strategy to incentivize its leadership and align their interests with the company's long-term performance. The information is based on a press release statement filed with the SEC.
In other recent news, Flora Growth Corp. has seen significant developments across various aspects of its operations. The pharmaceutical preparations company terminated its At-The-Market Issuance Sales Agreement with Aegis Capital Corp., ceasing the sale of its common shares via Aegis. This move was followed by the announcement of a new common share offering of 425,000 shares at $1.67 each to raise approximately $709,750 in gross proceeds.
Flora Growth also welcomed new appointments to its board and executive team. Brendan Cahill resigned as a director, with Sammy Dorf stepping in as a non-independent director and Executive Chairman of the Board. Manfred Leventhal was appointed as an independent director and member of several committees.
The company reported Q1 2024 revenues of $18 million and announced a supply agreement with Northern Green Canada Inc. for medicinal cannabis products aimed at the German market. Additionally, Flora Growth entered into a distribution agreement with Sunshine State Distributing for the distribution of its hemp-infused beverages in the Southeastern United States.
Flora Growth also expanded its global operations, partnering with Canopy Growth (NASDAQ:CGC) Corp. and Curaleaf (TSX:CURA) Holdings (OTC:CURLF), Inc. to distribute medical cannabis products in Australia and Germany respectively. These recent developments highlight the company's active engagement in strategic partnerships, leadership changes, and capital raising efforts.
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