[Cautionary Statement Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This section contains standard disclaimers about forward-looking statements, which are based on current expectations and are subject to significant business, economic, and regulatory risks [Cautionary Statement Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This section contains standard disclaimers about forward-looking statements, which are based on current expectations and are subject to significant business, economic, and regulatory risks - The report identifies numerous risks that could cause actual results to differ from forward-looking statements[9](index=9&type=chunk)[11](index=11&type=chunk) - Risks include limited operating history, net losses, changes in cannabis laws, going concern uncertainty, product recalls, and challenges in integrating acquired businesses[11](index=11&type=chunk) [PART I - Financial Information](index=6&type=section&id=PART%20I) This part presents the unaudited condensed interim consolidated financial statements and management's discussion and analysis for the three and six months ended June 30, 2025, and 2024 [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2025, and 2024 [Consolidated Statements of Financial Position (Balance Sheet)](index=7&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Statements%20of%20Financial%20Position) As of June 30, 2025, the company's total assets decreased to $22.7 million from $26.2 million at the end of 2024, mainly due to a significant reduction in cash Consolidated Balance Sheet Highlights (in thousands USD) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $1,471 | $6,017 | | Total current assets | $13,197 | $19,763 | | Total assets | $22,667 | $26,227 | | **Liabilities & Equity** | | | | Total current liabilities | $13,808 | $18,832 | | Total liabilities | $18,644 | $21,717 | | Total shareholders' equity | $4,023 | $4,510 | [Consolidated Statements of Loss and Comprehensive Loss (Income Statement)](index=8&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Statements%20of%20Loss%20and%20Comprehensive%20Loss) For the second quarter of 2025, the company reported a net loss of $2.4 million, an improvement from a $2.7 million loss in Q2 2024 Key Performance Indicators (in thousands USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $14,796 | $15,683 | $26,582 | $33,714 | | Gross Profit | $2,830 | $3,167 | $5,718 | $7,021 | | Operating Loss | $(2,566) | $(3,538) | $(3,543) | $(6,023) | | Net Loss | $(2,412) | $(2,657) | $(3,170) | $(6,031) | | Basic Loss Per Share | $(0.11) | $(0.21) | $(0.16) | $(0.57) | [Consolidated Statement of Cash Flows](index=11&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Statement%20of%20Cash%20Flows) For the first six months of 2025, net cash used in operating activities increased substantially to $5.6 million, compared to $1.6 million in the same period of 2024 Cash Flow Summary for Six Months Ended June 30 (in thousands USD) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(5,616) | $(1,605) | | Net cash provided by financing activities | $1,512 | $3,368 | | Net cash used in investing activities | $(636) | $(33) | | **Change in cash during the period** | **$(4,546)** | **$1,777** | [Notes to Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Interim%20Consolidated%20Financial%20Statements) The notes provide critical context to the financial statements, including going concern uncertainty, recent acquisitions, and deconsolidation of insolvent subsidiaries - **Going Concern:** Management has substantial doubt about the company's ability to continue as a going concern for at least one year, citing its **$1.5 million cash balance**, ongoing net losses, and an accumulated deficit of **$161.3 million**[29](index=29&type=chunk) - **Insolvency of Subsidiaries:** In March 2025, several Canadian and German subsidiaries filed for insolvency, leading to a pre-tax gain of **$1.16 million** from deconsolidation[32](index=32&type=chunk)[35](index=35&type=chunk)[40](index=40&type=chunk) - **Business Combination:** The company acquired United Beverage Distribution Inc. on February 4, 2025, for **$2.9 million in shares** and promissory notes, adding **$2.4 million in goodwill**[48](index=48&type=chunk)[50](index=50&type=chunk) - **Subsequent Event - Reverse Stock Split:** On July 31, 2025, the company announced a **1-for-39 reverse stock split**, effective August 4, 2025, to regain Nasdaq compliance[120](index=120&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=34&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, business strategy, and liquidity challenges, highlighting improved net loss but worsened operating cash flow and going concern issues [Business Overview](index=34&type=section&id=Overview%20of%20our%20Business) Flora Growth is a multi-national cannabis company operating through two core pillars: House of Brands and Commercial & Wholesale - The company's business strategy is built on two pillars: House of Brands and Commercial & Wholesale, allowing access to global markets based on local cannabis regulations[127](index=127&type=chunk) - In 2025, the company acquired United Beverage Distribution Inc., a distributor of cannabis-infused drinks, to be integrated into the House of Brands segment[132](index=132&type=chunk) [Results of Operations](index=38&type=section&id=Results%20of%20Operations) This subsection provides a detailed comparison of financial performance for the three and six-month periods ending June 30, 2025 and 2024 Revenue Contribution by Key Brands - Q2 (in millions USD) | Brand/Segment | Q2 2025 Revenue | Q2 2024 Revenue | | :--- | :--- | :--- | | Phatebo | $9.7 | $9.7 | | JustCBD | $3.2 | $4.4 | | Vessel | $1.0 | $1.4 | | AV | $0.5 | $0.2 | | TruHC & United | $0.4 | $0.0 | Revenue Contribution by Key Brands - H1 (in millions USD) | Brand/Segment | H1 2025 Revenue | H1 2024 Revenue | | :--- | :--- | :--- | | Phatebo | $16.6 | $21.0 | | JustCBD | $6.7 | $9.8 | | Vessel | $2.1 | $2.7 | | AV | $0.6 | $0.2 | | TruHC & United | $0.6 | $0.0 | - The net loss for H1 2025 decreased to **$3.2 million** from **$6.0 million** in H1 2024, primarily due to a **$1.2 million gain** on disposal of insolvent subsidiaries and a **$2.6 million reduction** in operating expenses[201](index=201&type=chunk) [EBITDA and Adjusted EBITDA](index=44&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) The company uses non-GAAP measures EBITDA and Adjusted EBITDA to assess operating performance, showing an improved Adjusted EBITDA loss for both periods in 2025 Adjusted EBITDA Reconciliation Summary (in thousands USD) | Period | Net Loss | Adjusted EBITDA Loss | | :--- | :--- | :--- | | **Six Months Ended June 30, 2025** | $(3,170) | $(2,545) | | **Six Months Ended June 30, 2024** | $(6,031) | $(4,323) | | **Three Months Ended June 30, 2025** | $(2,412) | $(2,138) | | **Three Months Ended June 30, 2024** | $(2,657) | $(2,820) | [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity position is critical, with cash falling to $1.5 million as of June 30, 2025, raising substantial doubt about its ability to continue as a going concern - As of June 30, 2025, the company had only **$1.5 million in cash** and negative working capital of **($0.6) million**, raising substantial doubt about its ability to continue as a going concern[206](index=206&type=chunk)[214](index=214&type=chunk) - Net cash used in operating activities for H1 2025 was **$5.6 million**, a significant increase from **$1.6 million** in H1 2024[211](index=211&type=chunk) - The company has a **€2.4 million credit facility** in Germany with **€2.3 million outstanding**, and **$2.2 million** in promissory notes from the United acquisition[216](index=216&type=chunk)[217](index=217&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that this item is not applicable - Not applicable[225](index=225&type=chunk) [Item 4. Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were effective as of the evaluation date, June 30, 2025[226](index=226&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[227](index=227&type=chunk) [PART II - Other Information](index=50&type=section&id=PART%20II) This part includes disclosures on legal proceedings, new risk factors related to digital assets, unregistered sales of equity securities, and other miscellaneous information [Item 1. Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) This section states there have been no material changes to the legal proceedings described in the 2024 Annual Report, except for those disclosed in Note 16 of the financial statements - No material changes to legal proceedings are reported, other than those detailed in Note 16 of the financial statements[228](index=228&type=chunk) [Item 1A. Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) The company has added new risk factors related to its recent investment in digital assets, including price volatility and security breaches - A new risk factor is the potential impact of digital asset price volatility on the company's financial results and common share price[230](index=230&type=chunk)[232](index=232&type=chunk) - The company identifies the risk of losing some or all of its digital assets due to security breaches or cyberattacks, which could materially harm its financial condition[233](index=233&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) On May 2, 2025, the company completed a private placement, selling common shares and pre-funded warrants, generating $1.1 million in net proceeds, primarily used to purchase digital assets - The company raised approximately **$1.1 million in net proceeds** from a private placement of common shares and pre-funded warrants on May 2, 2025[234](index=234&type=chunk) - **$1.0 million** of the proceeds were immediately invested into digital assets, including Solana, Ethereum, Sui, and Ripple[234](index=234&type=chunk) [Item 3. Defaults Upon Senior Securities](index=51&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports that there were no defaults upon senior securities during the period - None[235](index=235&type=chunk) [Item 4. Mine Safety Disclosures](index=51&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company states that this item is not applicable - Not applicable[236](index=236&type=chunk) [Item 5. Other Information](index=51&type=section&id=Item%205.%20Other%20Information) During the three months ended June 30, 2025, none of the company's directors or executive officers adopted or terminated a Rule 10b5-1 trading plan or any other non-Rule 10b5-1 trading arrangement - No directors or executive officers adopted or terminated a Rule 10b5-1 trading plan during the quarter[237](index=237&type=chunk) [Item 6. Exhibits](index=52&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the quarterly report, including corporate documents, agreements, and certifications by the Principal Executive Officer and Principal Financial Officer - Filed exhibits include key corporate documents, warrant forms, the 2022 Incentive Compensation Plan, and recent securities purchase agreements[238](index=238&type=chunk) - Certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act are included as exhibits[238](index=238&type=chunk)[240](index=240&type=chunk) [Signatures](index=54&type=section&id=Signatures) This section confirms the quarterly report was duly signed and authorized on August 1, 2025, by the Chief Executive Officer and Chief Financial Officer [Signatures](index=54&type=section&id=Signatures) The quarterly report was duly signed and authorized on August 1, 2025, by Clifford Starke, Chief Executive Officer, and Dany Vaiman, Chief Financial Officer - The report was signed on August 1, 2025, by the company's CEO and CFO[245](index=245&type=chunk)

Fort Lauderdale, Florida--(Newsfile Corp. - July 31, 2025) - Flora Growth Corp. (NASDAQ: FLGC) (FSE: 7301) ("Flora" or the "Company"), today announced that it will effect a 1-for-39 share consolidation of the Company's issued and outstanding common shares (the "Share Consolidation"). The Share Consolidation will be effective at 5:00 p.m. Eastern Time on August 3, 2025. The Company's common shares (the "Common Shares") are expected to begin trading on The Nasdaq Capital Market on a post-Share Consolidation b ...

Core Points - Flora Growth Corp. held its 2025 Annual and Special Meeting of Shareholders, where several proposals were voted on by shareholders [1][2][3][4][5]. Proposal Summaries - **Proposal 1**: Election of five directors to the board. All five directors were elected with the following votes: - Clifford Starke: 7,329,521 For, 1,500,756 Against - Sammy Dorf: 8,014,311 For, 815,247 Against - Edward Woo: 8,622,354 For, 204,155 Against - Manfred Leventhal: 8,715,612 For, 114,001 Against - Harold Wolkin: 8,560,356 For, 264,945 Against [1]. - **Proposal 2**: Reappointment of Davidson & Company LLP as auditors for the fiscal year ending December 31, 2025. The proposal passed with 12,637,347 For votes against 225,303 Against [2]. - **Proposal 3**: Approval of an amendment to the Company's 2022 Plan to increase the number of shares from 2,500,000 to 4,500,000. This proposal was approved [2]. - **Proposal 4**: Approval of the grant of Stock Appreciation Rights to the Company's executives. This proposal was not approved, receiving 1,291,659 For votes against 7,547,118 Against [3]. - **Proposal 5**: Authority for the Board to effect a share consolidation at a ratio between 10:1 and 100:1. This proposal was approved with 10,996,887 For votes against 1,296,154 Against [4]. - **Proposal 6**: Approval of the repricing and amendment of vesting terms of certain outstanding Stock Appreciation Rights. This proposal was also approved with 5,292,718 For votes against 3,547,911 Against [5].

Financial Performance - The company reported a net income and positive cash flows from operating activities only in Q3 2023, raising doubts about its ability to achieve sustained profitability[112]. - Revenue for the three months ended March 31, 2025, was $11.8 million, down from $18.0 million in the same period of 2024, representing a decrease of approximately 34%[139]. - Gross profit decreased to $2.9 million for the three months ended March 31, 2025, compared to $3.9 million in 2024, with a gross margin improvement to 25% from 21%[139]. - Operating expenses totaled $3.9 million for the three months ended March 31, 2025, down from $6.3 million in 2024, primarily due to a $1.2 million gain on the disposal of insolvent subsidiaries[140]. - The company recorded a net loss of $0.8 million for the three months ended March 31, 2025, significantly reduced from a net loss of $3.4 million in 2024[157]. - Adjusted EBITDA for the three months ended March 31, 2025 was $(534,000), a decrease from $(268,000) in the prior year[161]. - Cash used in operating activities was $2.7 million for the three months ended March 31, 2025, compared to $1.3 million for the same period in 2024[167]. - As of March 31, 2025, the Company had cash of $3.7 million, down from $6.1 million as of December 31, 2024[162]. - The Company expects to continue incurring operating losses and negative cash flows in the foreseeable future[162]. Acquisitions and Market Strategy - The company acquired United Beverage Distribution Inc. in 2025, which specializes in cannabis-infused drinks and holds supply agreements with major beverage retailers[108]. - The company is focused on expanding its market presence in Germany and the European Union as cannabis regulations evolve globally[115]. - The company’s growth strategy includes acquisitions, but it faces risks related to transaction costs and the realization of anticipated synergies[113]. - The Company generated $437,000 from investing activities in the three months ended March 31, 2025, primarily related to the acquisition of United[169]. - The Company issued promissory notes totaling $2.1 million as part of the acquisition of United, with the first payments due in February 2026[173]. Revenue Sources and Segments - The company’s revenue is primarily generated from pharmaceutical goods distribution and cannabis-based products, with two major segments: House of Brands and Commercial & Wholesale[121][123]. - The company’s subsidiary, Phatebo, distributes pharmaceutical products in 28 countries, focusing on Europe, and holds licenses for narcotic drugs and medical cannabis[109]. - The company’s brand portfolio includes JustCBD and Vessel, which are positioned to capture market share in emerging cannabis markets[104][105]. - JustCBD's revenue contribution fell to $3.5 million in Q1 2025 from $5.4 million in Q1 2024, while Phatebo's revenue decreased to $6.9 million from $11.3 million[142]. Financial Obligations and Liquidity - The Company’s working capital as of March 31, 2025 was $0.6 million, indicating tight liquidity[170]. - As of March 31, 2025, the company's total contractual obligations amount to $11,464,000, with $6,283,000 due in less than 1 year[175]. - The company has $2,626,000 in sales tax obligations due within 1 year[175]. - Contingent purchase consideration related to acquisitions totals $531,000, all due within 1 year[178]. - Operating lease obligations total $3,554,000, with $830,000 due in less than 1 year and $1,896,000 due in 1-3 years[175]. - The company's debt obligations total $4,753,000, with $2,296,000 due in less than 1 year and $1,255,000 due in 1-3 years[175]. Operating Expenses and Cost Management - The company faces challenges in reducing overhead costs to meet market demand, impacting its cash flow and reliance on debt or equity financing[111]. - The company’s operating expenses include significant costs related to public company requirements, which are expected to continue increasing[119]. - Consulting and management fees decreased to $1.9 million in Q1 2025 from $2.3 million in Q1 2024, attributed to a reduction in total headcount[141]. - Research and development expenses remained stable at approximately $0.1 million for both Q1 2025 and Q1 2024, focusing on contract research and new brand launches[148]. Tax and Non-Operating Income - Non-operating income was $0.3 million for Q1 2025, a turnaround from a non-operating expense of $0.8 million in Q1 2024, primarily due to gains on contingent consideration[155]. - The effective tax rate for the periods ended March 31, 2025, and 2024 was -5.3% and -3.9%, respectively, with a full valuation allowance recorded against net deferred taxes[156]. Compliance and Regulatory Matters - The company has a minimum bid price requirement of $1.00 per share, with a compliance deadline of August 25, 2025, to avoid potential delisting from Nasdaq[120]. - No new accounting standards impacted the company during the three months ended March 31, 2025[177]. - The company has not disclosed any quantitative or qualitative market risk information[179].

Core Insights - Flora Growth Corp. reported its financial and operational results for the year ended December 31, 2024, highlighting a strategic focus on cannabis innovation and market expansion [1][22]. Regulatory Developments - The re-election of President Donald Trump is seen as an opportunity for cannabis reform in the U.S., with expectations for regulatory clarity and market expansion for THC-infused products [2][6]. - Flora supports recent legislative changes in Germany aimed at liberalizing industrial hemp cultivation, which could enhance market opportunities [9][12]. Leadership and Strategic Appointments - Sammy Dorf, co-founder of Verano, has joined Flora as Executive Chairman, bringing expertise in cannabis operations and licensing [3][6]. - Dr. Manfred Ziegler has been appointed as Managing Director in Germany, leveraging his extensive experience in the pharmaceutical industry [12]. Product Launches and Market Expansion - Flora launched its first THC-infused beverages, Melo and Cloud Cola, and entered a distribution partnership with Sunshine State Distributing [15][20]. - The company is expanding its e-commerce presence in Germany through partnerships and product offerings, including Love Hemp's range [9][8]. Financial Performance - For the year ended December 31, 2024, Flora reported a net loss from continuing operations of $15.9 million, a significant improvement from a loss of $46.7 million in the previous year [27]. - The company maintained a gross profit margin of 39% on sales of $17.8 million, with approximately 40% of revenues from direct-to-consumer sales [27][21]. Market Outlook - The German medical cannabis market is projected to reach $450 million in 2024, with significant growth expected over the next five years [15][27]. - Flora's strategic initiatives in the U.S. and European markets position it to capitalize on the growing demand for cannabis products [20][9].

Financial Performance - For the years ended December 31, 2024 and 2023, the company reported losses of $15.9 million and $56.3 million, respectively, with an accumulated deficit of $158.1 million as of December 31, 2024[77]. - The company had cash and cash equivalents of $6.1 million as of December 31, 2024, with a loss of $15.9 million for the year and an accumulated deficit of $158.1 million[135]. - The company's ability to continue as a going concern is dependent on obtaining additional capital, as current cash levels are insufficient for growth and meeting obligations[135]. - Management has raised substantial doubt about the company's ability to continue as a going concern, which could impair financing operations through equity or debt offerings[136]. - The company continues to incur increased costs associated with operating as a public company, impacting financial condition and operational flexibility[161]. - The market price of Common Shares could experience significant fluctuations due to various risk factors, potentially leading to substantial losses for investors[180]. Acquisitions and Growth Strategy - The company has acquired 100% equity interests in Just Brands, Franchise Global Health, AV, and TruHC, indicating a history of acquisitive activity[80]. - The company is investing significant resources to expand into additional consumer markets, including the United States and international markets, but may face challenges such as competitive merchandising and distribution[97]. - The anticipated benefits of acquisitions and strategic investments may not be realized, exposing the company to unknown risks or liabilities[83]. - The company may face difficulties in integrating recent acquisitions, which could divert management attention and harm operational results[80]. - The company expects to incur significant ongoing costs related to infrastructure, growth, and regulatory compliance, which may adversely affect its financial condition[194]. Regulatory and Compliance Risks - Compliance with evolving cannabis laws and regulations may incur substantial costs and adversely affect the company's business[86]. - The company is subject to various regulatory requirements that could lead to increased compliance costs or operational restrictions, impacting business activities[128]. - The company is subject to evolving regulations, with significant risks related to inconsistent federal and state laws regarding cannabis[121]. - The company may incur significant costs to defend its intellectual property rights, which are crucial for its future success[115]. - The company may be classified as a Passive Foreign Investment Company (PFIC), which could have adverse tax consequences for U.S. investors[148]. - Changes in U.S. federal income tax laws may adversely affect the Company and holders of Common Shares, with ongoing legislative proposals that could have retroactive effects[152]. - The Inflation Reduction Act of 2022 imposes a minimum tax on the book income of large corporations, which could impact the Company's financial performance[153]. - The European Union's Minimum Tax Directive, adopted on December 15, 2022, mandates a global minimum level of taxation for multinational companies, potentially affecting the Company's effective tax rate and cash flows[154]. Operational Risks - The company faces risks related to product liability claims, which could adversely affect its reputation and financial condition[91]. - Fluctuations in the cost and availability of raw materials, labor, and transportation could harm the company's gross margins and ability to meet customer demand[98]. - The company relies on third-party vendors for critical raw materials and manufacturing, which poses risks if these relationships are disrupted[99]. - The company's inventory includes products with a shelf life, and any write-downs due to expiration could materially affect its financial condition[101]. - The company relies on third-party transportation services, which could lead to logistical problems and increased costs affecting financial performance[109]. - The company faces wholesale price volatility in the pharmaceutical and cannabis industries, which could adversely affect revenues and gross margins[106]. - The legalization of recreational cannabis may increase competition in the medical cannabis market, potentially reducing sales and profit margins[108]. - The cannabis industry is in a nascent stage, making it difficult to quantify the target market size, and the company has not generated net income[130]. - The company may face challenges in marketing CBD products due to FDA regulations prohibiting health claims, potentially affecting revenues[129]. Management and Human Resources - The company may not successfully implement its business plan or attract and retain an experienced management team, which could hinder its growth[79]. - The loss of key management or employees could have a material adverse effect on the company's operations[189]. - The company faces potential conflicts of interest due to the involvement of its officers and directors in other business activities[169]. Cybersecurity and Legal Risks - Cybersecurity risks could disrupt operations and expose the company to financial losses and reputational damage[112]. - The company may face legal proceedings that could negatively impact its financial results[186]. - There is no assurance that the company's insurance coverage will be sufficient to cover all claims, potentially impacting its financial condition[195]. Market and Economic Conditions - Seasonal trends significantly impact the company's financial results, with a disproportionate amount of net revenue expected in the third and fourth quarters[102]. - Political, social, and geopolitical conditions may adversely affect the company's business and financial results[183]. - Future issuances of debt securities and preferred stock may adversely affect the returns for holders of Common Shares[178]. - The company's success depends on its ability to enhance product offerings in response to technological and regulatory changes[188].

Core Insights - Flora Growth Corp. has appointed Patrick Moloney as Head of Product Development for its accessory brand, Vessel, aiming to enhance growth in the premium accessories market [1][4] - Mr. Moloney brings over 20 years of experience in product innovation and leadership from globally recognized companies, including Dyson and British American Tobacco [2][3] - His extensive background includes over 300 patents and significant contributions to product development, which will be leveraged to drive innovation and strengthen Vessel's market position [3][4] Company Overview - Flora Growth Corp. aims to become a leading NASDAQ small-cap international cannabis company, focusing on consumer-packaged goods and pharmaceutical distribution [6] - The company serves all 50 states and 28 countries, with over 20,000 points of distribution globally [6]

Group 1 - Flora Growth Corp. announced the closing of a registered direct offering to institutional investors for approximately $3.6 million of Common Shares at a price of $1.25 per share [1][2] - The offering consisted of the sale of 2,850,000 Common Shares, with aggregate gross proceeds expected to be around $3.6 million [2] - The net proceeds from the offering will be used for general corporate purposes and working capital [2] Group 2 - Aegis Capital Corp. acted as the Exclusive Placement Agent for the offering, while Dorsey & Whitney LLP and Kaufman & Canoles, P.C. served as legal counsel for the Company and Aegis Capital Corp., respectively [3] - The offering was made under an effective shelf registration statement on Form S-3, which was declared effective by the SEC on September 6, 2023 [4] Group 3 - Flora Growth Corp. is a cannabis-focused consumer-packaged goods leader and pharmaceutical distributor, serving all 50 states and 28 countries with over 20,000 points of distribution globally [6]

Core Viewpoint - Flora Growth Corp. has announced a registered direct offering with institutional investors for approximately $3.6 million in Common Shares at a price of $1.25 per share [1][2]. Group 1: Offering Details - The offering consists of the sale of 2,850,000 Common Shares, with aggregate gross proceeds expected to be around $3.6 million [2]. - The transaction is anticipated to close on or about December 16, 2024, pending customary closing conditions [2]. - The net proceeds from the offering will be used for general corporate purposes and working capital [2]. Group 2: Legal and Regulatory Information - Aegis Capital Corp. is acting as the Exclusive Placement Agent for the offering, while Dorsey & Whitney LLP and Kaufman & Canoles, P.C. are serving as legal counsel for the Company and Aegis Capital Corp., respectively [3]. - The offering is made under an effective shelf registration statement on Form S-3, which was declared effective by the SEC on September 6, 2023 [4]. Group 3: Company Overview - Flora Growth Corp. is a cannabis-focused consumer-packaged goods leader and pharmaceutical distributor, operating in all 50 states and 28 countries with over 20,000 points of distribution globally [7].

Core Insights - Flora Growth Corp. is launching its THC-infused beverage brand, Melo, in select states starting December 13, 2024, through Total Wines & More, a prominent retailer in the U.S. [3][4] - Melo will be available in four flavors: grapefruit, half & half lemonade iced tea, strawberry mango, and wild berry, targeting consumers looking for alternatives to alcohol [5][6] - The partnership with Total Wines & More is expected to enhance Melo's market presence and differentiate it from competitors due to its quality and flavor offerings [6] Company Overview - Flora Growth Corp. aims to become a leading NASDAQ small-cap international cannabis company, focusing on consumer-packaged goods and pharmaceutical distribution across all 50 states and 28 countries [7]