FLGC - Global Weed Brand To Buy Australian Vaporizes For $1.7M In Shares | Benzinga
Cannabis company Flora Growth Corp. (NASDAQ: FLGC) has signed a definitive agreement Monday to buy Australian Vaporizers Pty Limited from a health-tech company, Lifeist Wellness Inc. (TSXV: LFST) (FRANKFURT: M5B) (OTCMKTS: LFSWF), a health-tech company. Under the deal, Flora will acquire all of the issued and outstanding shares of Australian Vaporizers in exchange for 600,676 Flora common shares, valued at $1.7 million based on the closing price of Flora's common shares on September 15, 2023, subject to working capital adjustments. The transaction is expected to close in the fourth quarter of 2023.
Australian Vaporizers is expected to be immediately accretive to Flora and is anticipated to provide annual contributions of $5.2 million in revenues, $1.2 million in gross margins, and $500,000 in net income. For its most recently completed six-month period ended May 31, 2023, the acquired business achieved $2.5 million in revenues, $600,000 in gross margins, and $25,000 in net income. At closing, ...