FORT LAUDERDALE - Flora Growth Corp. (NASDAQ: FLGC), a global cannabis company, has launched a public offering of 1.7 million common shares to raise approximately $3.23 million. The proceeds from the offering, which was priced today, will be directed toward general corporate and working capital needs.
The offering is expected to close around April 8, 2024, subject to customary closing conditions. Aegis Capital Corp. is serving as the sole book-running manager for the offering, with legal counsel provided by Dorsey & Whitney LLP for Flora Growth and Kaufman & Canoles, P.C. for Aegis Capital Corp.
Clifford Starke, CEO of Flora Growth, along with an existing investor, have committed to purchasing shares in this offering, which were allocated by Aegis Capital Corp. The offering is being made under an effective registration statement on Form S-3, filed with the U.S. Securities and Exchange Commission (SEC) and declared effective on September 6, 2023.
Interested parties are advised to fully review the registration statement and the preliminary prospectus, which detail more about the company and the offering. These documents are available on the SEC's website and from Aegis Capital Corp.
Flora Growth operates as a producer and distributor of cannabis-based consumer-packaged goods and pharmaceuticals, with a distribution network spanning 50 states and 28 countries, totaling over 20,000 points of distribution.
The information in this article is based on a press release statement from Flora Growth Corp.
InvestingPro Insights
As Flora Growth Corp. (NASDAQ: FLGC) embarks on its latest capital-raising effort, real-time metrics from InvestingPro paint a detailed financial picture of the company's current standing. The global cannabis company, with a market capitalization of approximately $23.88 million, shows a significant revenue growth of 127.75% over the last twelve months as of Q4 2023. This growth is reflected in the quarterly figures as well, with a 70.38% increase in revenue in Q4 2023.
Despite these impressive growth metrics, the company's profitability remains a challenge. The P/E ratio, which measures a company's current share price relative to its per-share earnings, stands at -0.33, and the adjusted P/E ratio for the last twelve months as of Q4 2023 is even lower at -1.18. These figures suggest that investors are concerned about the company's earnings outlook.
InvestingPro Tips further inform that Flora Growth is trading at a low revenue valuation multiple and analysts do not anticipate the company will be profitable this year. However, there is a silver lining as the company holds more cash than debt on its balance sheet, which could provide some financial stability in the near term.
For investors looking for more in-depth analysis and tips, there are an additional 17 InvestingPro Tips available for Flora Growth Corp. on InvestingPro. Users can also take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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