Wednesday, March 9, 2022

Flora Growth Corp. (NASDAQ: FLGC) Strengthens Foothold in U.S. Wellness Market with Acquisition of JustCBD, Appoints Jessie Casner as CMO

 

  • Flora Growth owns and operates a portfolio of brands offering wholesale products, consumer packaged goods, or pharmaceutical and medical products
  • The three-pronged operational approach has allowed the company to substantially expand and accelerate its revenue growth over the short term
  • Recently, Flora Growth added yet another brand, JustCBD, to its portfolio; JustCBD’s performance is expected to immediately contribute to FLGC’s 2022 revenues and earnings
  • Flora Growth also appointed Jessie Casner as the Chief Marketing Officer; Ms. Casner will lead communications, narrative building, and consumer marketing strategies, in addition to crafting brand awareness activities

Founded on the premise of becoming a global leader in the cannabis trade, Flora Growth (NASDAQ: FLGC) is progressively developing an ecosystem that will support market-leading innovation, all in a mission to build a design-led collective of plant-based wellness and lifestyle brands. The company has expanded rapidly through existing and new brands operating in the cannabis & hemp, food & beverage, skincare & cosmetics, lifestyle & apparel, ancillary & technology, and nutraceuticals & wellness segments.

In explaining the motivation behind building a large, ever-growing ecosystem of brands, CEO Luis Merchan recently stated that “as a cannabis company, we need to ensure that we have the ability to penetrate a market with certain categories of products.” And while the segments may appear significant, Luis pointed out, they are simply anchored in three main growth pillars: wholesale products, consumer packaged goods (“CPG”), and pharmaceutical and medical products.

“When you look at those three perspectives, you will see that the barriers of entry in each country we are operating in are very different for each of the three [operational pillars]. But this approach has allowed us to dramatically expand and accelerate our revenue growth over the short term,” Luis continued. He was speaking during a presentation delivered at MoneyShow’s Cannabis Investing Virtual Expo held on February 8 (https://nnw.fm/6Hke9). 

In line with this focus and goal, Flora Growth recently announced it had acquired 100% of the equity interests Just Brand LLC and High Roller Private Label LLC, for a cash consideration of US$16.0 million and 9.5 million privately issued FLGC common shares. JustCBD operates in the consumable cannabinoid market, offering assorted gummies, tinctures, vape cartridges, creams, and more (https://nnw.fm/LpELD).

Following the acquisition, Flora Growth expects JustCBD’s financial performance to immediately contribute to its 2022 revenues and earnings, perfectly exemplifying the highlighted benefit of the three-pronged approach: to expand and accelerate its revenue growth over the short term. Additionally, Flora Growth intends to create major U.S. distribution synergies by linking its existing brand portfolio, including Mind Naturals, Tonino Lamborghini, and Vessel, with JustCBD’s extensive distribution network in the country, thus expanding revenue growth for each of the brands.

Flora Growth also intends to offer JustCBD the wherewithal and impetus to expand into international markets where CBD products are legal. This would be a departure from its current focus on the U.S. wellness market. Additionally, FLGC will explore the potential for long-term supply chain efficiencies.

“This acquisition continues to strengthen Flora’s foothold in the U.S. wellness market as well as providing meaningful growth acceleration and delivering human capital to the Flora organization. Additionally, there is an incredible opportunity to leverage our economically advantaged cultivation to support the expansion of the JustCBD brand in the global market,” said Luis. He also praised the JustCBD team for its ability to build such a recognizable brand in the noisy, rapid-growth market.

Meanwhile, Flora Growth recently appointed Jessie Casner as Chief Marketing Officer. Ms. Casner, who previously held the position of Vice President of Sales and Marketing at Vessel brand, FLGC’s new subsidiary, brings her unmatched experience in go-to-market strategy as well as consumer and brand marketing. In her new role, Ms. Casner will support the rapid growth of Flora Growth’s core CPG brands as well as the company itself by leading the communications, narrative building, and consumer marketing strategies. She will also continue to design FLGC’s brand awareness activities in the consumer and investor markets (https://nnw.fm/zGAZG). 

For more information, visit the company’s website at www.FloraGrowth.com.

NOTE TO INVESTORS: The latest news and updates relating to FLGC are available in the company’s newsroom at https://nnw.fm/FLGC

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