- Flora Growth ( NASDAQ: FLGC ) said Monday it will acquire Franchise Global Health ( FGH:CA ), a medical cannabis firm primarily operating in Germany, in an all-stock deal.
- Flora ( FLGC ) will issue between 36.6M and 43.5M of its shares to Franchise Global ( FGH:CA ) shareholders.
- The shares will be restricted from being sold for 90 days after the deal closes.
- The deal is expected to accelerate Flora's ( FLGC ) expansion into cannabis and pharmaceutical markets in Europe - primarily Germany - as well as its CBD business by using Franchise Global's ( FGH:CA ) distribution and logistics capabilities.
- The acquisition is expected to deliver at least $3M of annualized cost synergies within the first year after the deal closes, primarily in reduced corporate administrative costs.
- Franchise Global ( FGH:CA ) CEO Clifford Starke will have the right to name two candidates for Flora's ( FLGC ) board and he is expected to be one of the candidates.
For further details see:
Flora Growth to acquire Franchise Global Health in all-stock deal