FLGC - Flora Growth gains on deal to acquire No Cap Hemp assets

• Flora Growth ( NASDAQ: FLGC ) shares popped 5% pre-market on Wednesday after the medicinal cannabis firm announced that subsidiary Just Brands acquired substantially all of the assets of No Cap Hemp.
• No Cap Hemp is an emerging brand in the hemp flower market. Its assets were acquired without payment of any consideration at closing. Instead, Flora ( FLGC ) will pay to the sellers, 10% of the gross revenue received from the sale of No Cap products up to a maximum of $2M.
• The acquired assets are expected to add ~75 SKUs to Flora's product portfolio as well as the "No Cap" and "Moonblunt" trademarks.
• The acquisition will diversify Flora's ( FLGC ) brand portfolio and product offerings, expand its distribution foothold in the U.S. market and offer an immediate revenue stream.
• Luis Merchan, Chairman and CEO of Flora Growth, said, "This transaction will allow Flora to immediately benefit from a profitable, cash flow positive and growing business. We look forward to increasing our product offering through this transaction while broadening our sales team in the process."

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