FLGC

November 3, 2024

FLGC is a consumer-packaged goods leader and pharmaceutical distributor serving all 50 states and 28 countries with 20,000+ points of distribution around the world

CEO Clifford Starke is so confident about the future of Flora Growth that he has purchased over 1.3 MILLION shares of the company and is a major insider

Cannabis earns higher tax revenue than alcohol in 9 states FLGC has over 400 products in 15 Unique categories

READ THE INVESTOR PRESENTATION HERE

_________________________

Hello Everyone,

We have a company back on our radar that we took a look at just few weeks ago.

We showed you this one when it was sitting around 1.70. It ran all the way to 2.10.

Why is this sector hot again after all these years?

As of August 2024, cannabis is now legal in 38 U.S. states for medical use and fully legal in 24 U.S. states. As more U.S. states and countries legalize the plant for both recreational and medicinal uses, investors are taking greater interest in adding companies in the growing space to their portfolios.

Federal prohibition has been a thorn in the side of cannabis companies, as federal law makes it significantly more expensive to run cannabis related businesses and forces these companies to be subject to much higher tax rates. ’ If federal rescheduling of cannabis from Schedule I to Schedule III cannabis occurs, operators will have their tax rates reset to normal corporate tax rates adding cash to the bottom line. Rescheduling to Schedule III will still require FDA approval for any product containing cannabis to be sold but should ease research into therapeutic uses for cannabis. It is not yet clear that rescheduling will occur, but political and agency signals seem to be supportive of rescheduling. Until then cannabis remains a Schedule I substance.

Many people hope that rescheduling facilitates the sale of cannabis products that help them reduce stress, improve sleep, or manage pain.

Around nine-in-ten Americans say marijuana should be legal for medical or recreational use, according to a January 2024 Pew Research Center survey.

Pull up FLGC right away and start researching it now.

Flora Growth has been actively acquiring companies over the past few years in hopes of expanding its business both in the U.S. and globally.

CEO Clifford Starke is so confident about the future of Flora Growth that he has purchased over 1.3 MILLION shares of the company and is a major insider!

MAJOR CATALYSTSOne of the first U.S. exchange listings for a cannabis company
Secured the first cannabis license and gram sold and obtained cultivation license in Germany.
Raised an aggregate of $135 million since inception
Maintains a clean balance sheet with no long-term debt, $6.1 million cash, and $2.0 million available on lines of credit
13.3 million shares outstanding and 10% insider ownership
Earned $76.1 million in revenue in 2023 with YOY Growth – 128%; Reduced cash used in operations by 91% in Q2 2024
Employs 108 professionals across the globe
Active in 28 countries with 20,000+distribution points
Focused on acquiring cashflow positive and strategic businesses
Over 400 products across 15 unique categories
One of the best selling CBD gummies in the world
Buy recommendation and $6 share price issued by Roth MKM

‍

The legal cannabis industry is still in its early stages and the market opportunities remain significant, especially if the plant may be headed towards federal legislation in the United States!

Now may be one of the most exciting times to have your eyes on the legal cannabis space as the U.S. may be in the beginning of a wave of favorable legislative reforms with both major party presidential candidates expressing support!

Recent Product Launches and Partnerships

Vessel unveiled the second-generation Compass Rise – the next evolution in functionality and elegance. Built for the discerning connoisseur, Compass Rise embodies sophistication while delivering what consumers have come to expect from Vessel’s products. From its sleek design, cutting-edge technology, and the ability to stay upright, every aspect of Compass Rise reflects Vessel’s dedication to meeting changing market trends. Compass Rise features a nearly indestructible metal frame, enhanced heat settings, and first-in-class ergonomics. Compass Rise is now available for purchase on the Vessel Brand website, through Multi-State Operators (“MSOs”) and select retailers nationwide.
JustCBD introduced new products to its line of offerings – JustCBD+ Calm Gaba & L-Theanine Mixed Berry Gummies and JustCBD+ Sleep Magnesium and Melatonin Raspberry Gummies. These innovative gummies are designed to support stress management and promote relaxation, as well as enhance sleep quality. The JustCBD+ Calm Gaba & L-Theanine Mixed Berry Gummies are formulated with an optimal blend of Gaba and L-Theanine, renowned for their calming properties. These ingredients are combined to assist users in managing stress and attaining a state of relaxation. The mixed berry flavor enhances the experience, making stress relief both effective and amiable. Melatonin gummies are one of the Company’s best sellers.
The Company entered partnerships for the distribution of Vessel Brands in the United Kingdom, and in Israel with Althea Group Holdings Limited and IM Cannabis Corp., respectively.
Flora entered an exclusive distribution agreement with Me Raw Trade Ltd. to distribute both JustCBD and Vessel branded products in Poland.

PRODUCTS

JUSTCBD

JustCBD is an established CPG wellness brand with over 300 products and a seamless omni-channel approach that includes a direct-to-consumer business with over 300,000 customers and a network of over 14,000 distribution points across the United States and internationally. Flora acquired the brand in February of 2022.

JustCBD high quality CBD products are made from organically sourced USA-grown hemp. JustCBD carries a wide range of CBD items for sale, including everything from Gummies and oil to soothing creams and pet treats. It has more than 22,000 5-star reviews. Every CBD product is GMP certified, as well as third party laboratory tested to confirm buyers’ safety. For more information, visit www.justcbdstore.com.

This NASDAQ-traded small cap firm also has an established pipeline into the growing German market!

In fact, FLGC’s wholly owned subsidiaries have been active in Germany since 2017, obtained the FIRST medical cannabis license in the country and are also responsible for selling the first gram of medical cannabis in Germany.

With the largest population and the greatest purchasing power in Europe, Germany boasts Europe’s fastest growing cannabis market. With the following 2 phases of German legalization expected in the coming 12-18 months, Germany may become the largest federally legal adult use cannabis country!!

This bodes well for Flora Growth Corp. (NASDAQ: FLGC) who has acquired TruHC in an all-share deal valued at $6.4M. Majority control of TruHC was acquired in April of 2024.

Why is this a big deal?

Because there is a limited number of entities that can bring flower globally to supply the burgeoning German market.

“The acquisition of TruHC is expected to provide Flora with the runway it needs to maximize the benefits of Germany’s cannabis legislation. We intend to touch on many verticals in the medical and recreational cannabis realms in Germany. We anticipate becoming a leader and at the forefront of the industry, which has the potential to spread to the rest of Europe. Together, we are excited to assume pack leadership in a sector poised for explosive growth.”

Clifford Starke, Chief Executive Officer

TruHC

TruHC Pharma GmbH is a medical cannabis developer and distributor based in Hamburg, Germany that holds an EU-GDP certification as an importer, distributor and manufacturer of medical cannabis, and operates a production facility with a cutting-edge cannabis laboratory. The company also holds an EU-GMP license.

TruHC is expected to contribute the following to Flora:

A GDP wholesale license and an EU-GMP processing and production license for medical cannabis. It also owns and operates an EU-GMP certified laboratory ready for instant cannabis analysis as required for the new Cannabis Social Clubs.
The facility of TruHC is a flexible production space with EU-GMP certified modules that can be extended and customized for any production process from processing to extraction and enables a license extension for a future in country cultivation of medical cannabis and supply of cannabis dispensaries expected to be opened in 2025 during phase 3 of legalization. TruHC also holds a narcotic license with EU-GMP certified storage.
TruHC’s licenses allow TruHC to apply for new medical cannabis and cultivation licenses and become an official cannabis test lab for upcoming cannabis social clubs. It also enables international import of seeds and flowers for future distribution.

Germany made history this year by becoming the largest country in the EU to legalize recreational cannabis!

On April 1, 2024, Germany legalized recreational cannabis with explosive growth.With approximately 230,000 medical cannabis patients prior to legalization, Germany continues to lead the way in European medical cannabis; only represents 0.28% of the population. Other countries, such as Australia, have up to Size of global cannabis market. Source: Prohibition Partners 2.3% of population (1.7 million patients) as medical cannabis patients.More than 40 countries have legalized cannabis fully or partially for medical and/or adult use, with the total global market over $100 billion, which Germany representing 10% of the total global market.Germany is the gateway to the European Union with the total market potential after legalization projected reach 100 million cannabis consumers, which is larger than the U.S.

The EU Market is Booming

The cannabis market in Europe is forecasted to achieve $33 billion by 2030 according to BDS Analytics with Germany leading the pack.
According to Prohibition Partners, the European medical cannabis market is expected to reach $3.5 billion by 2025.
Germany represents half of Europe’s medical cannabis market, with 2023 sales of $427 million to over 230,000 patients.
The medical market opportunity alone is expected to reach $3 billion in Germany and $45 billion within Europe over the longer-term.
The German legal recreational market has the potential to reach $4.2 billion according to Forbes.

Countries such as Germany have taken steps to facilitate access to cannabis. Germany represents half of Europe’s medical cannabis market, with 2023 sales of $427 million to over 230,000 patients, and ongoing research and clinical trials for several marijuana-based medications are underway.

As the EU’s market for cannabis products continues to grow, Flora Growth Corp. (NASDAQ: FLGC) aims to further capitalize with Phatebo GmbH!

“An early focus on Germany, highlighted by 2017 medical sales and a late 2022 acquisition of FGH, has positioned Flora to capitalize on legislative changes (home cultivation began April 1). Flora intends to leverage Phatebo relationships (part of FGH) to move medical cannabis from third parties into Germany.” – ROTH MKM

Phatebo GmbH is a leading distributor of export pharmaceuticals and medical cannabis products to the burgeoning European Union. Phatebo GmbH accelerates Flora’s expansion in Europe’s largest medical cannabis market.

SEE THE STOCK CHART

Phatebo GmbH

Phatebo GmbH is a reliable partner in the healthcare industry. This dynamically developing pharmaceutical company is based in Hilzingen Germany, on the western shore of Lake Constance. Through its widespread and qualified supplier network, the company can offer its customers a wide range of branded Rx and OTC medicines, as well as medical devices, at attractive prices.

Flora is hopeful that a recent Frankfurt Stock Exchange listing will support FLGC’s trading liquidity and facilitate investment in Flora by European investors, .

As the global cannabis industry expands, it’s often the “pick and shovel” companies—those providing essential tools and services—that are most profitable, not necessarily the growers…

This highlights Flora Growth Corp. (NASDAQ: FLGC)’s vapes brand Vessel – the company’s fastest growing segment!

In the second quarter of 2024, Vessel maintained a gross profit margin of 53% on sales of $1.4 million and over 60 new wholesale customers were added to the Vessel network in the quarter, including several Multi-State Operators.

Vessel

Vessel’s mission is to be the world’s leading producer of consumer technology and accessories. The company’s products are built better, designed smarter and inspire optimism and happiness.

The company’s goal is to make every experience more expressive and personal, and to deliver the best performance in our line. The collection is an honest display of Vessel’s attention to detail and craftsmanship that’s second to none.

Today, cannabis vaping is one of the most preferred methods of cannabis consumption, courtesy largely because of its convenience and effectiveness.

The global cannabis vaporizer market is anticipated to expand 3.5X its value from 2021 to 2031 according to FactMr.com. Legalization of cannabis in many countries and changes to regional policies are key to the growth.

Vessel is consistently rolling out innovative products and is quickly growing into a leading vaping company.

Flora Growth Corp. (NASDAQ: FLGC) has recently closed on its acquisition of Australian Vaporizers. This is a milestone in the company’s efforts to buy e-commerce engines and to use them to sell Vessel!

In August of 2024, FLGC closed on its acquisition of Australian Vaporizers. The acquisition has the potential to drive synergies with Flora’s existing portfolio of brands, including selling Vessel Brand products in Australia, which is Flora’s fastest growing segment.

Australian Vaporizers

Australian Vaporizers was founded in 2010 and has become one of the largest online retailers of vaporizers, hardware, and accessories in Australia. It is an online expert for aromatherapy products, specializing in dry herb vaporizers. It has been providing vapes, accessories and knowledge to enthusiasts and newcomers alike. Its websitewww.australianvaporizers.com.au is a popular designation in the country with a large database of satisfied customers. Australian Vaporizers sold over 92,000 units to over 30,000 active customers through business to business and direct to consumer channels.

One of the biggest disruptors to hit the beverage industry is THC-infused beverages and Flora Growth Corp. (NASDAQ: FLGC) is aiming to be at the forefront of this niche category!

Flora Growth Corp. (NASDAQ: FLGC) Has Formed a 50/50 Joint Venture to Establish Peak USA JV LLC. (“Peak USA”).

This Marks FLGC’s Strategic Entrance into the Growing Cannabis-infused Beverage Market!

Highlights

Peak is a recognized market leader in cannabis-infused beverages and has a 40% market share in Canada.
Peak powers the biggest brands in the world and has 8 years of industry-defining experience.

The goal is to produce the next generation of cannabis infused beverages for the U.S. market.

According to Headset Data, the beverage market segment currently represents only 1% to 3% of the U.S. cannabis market. First-time daily cannabis use overtook alcohol, with roughly 17.7 million users compared to 14.7 million for alcohol.

The partnership is strategically positioned to establish cannabis beverages distribution in the U.S. by via CPG channels like wine and liquor stores.

The joint venture will leverage the strengths and resources of both Peak and Flora to capitalize on current commercial opportunities in the beverage market in the U.S., driving mutual growth and success. Peak contributes production know-how, while Flora brings a wealth of brand launching, sales and marketing expertise within the dynamic landscape of lifestyle brands in the U.S.

In late November of 2023, Total Wine and More, the largest independent alcoholic beverage retailer in the country, became the first major liquor store in the US to sell drinks containing THC.
This proves further that THC-infused beverages are going mainstream!

The drinks are being marketed as an alternative to alcohol which explains why alcohol giants are climbing on board.

‍

Flora Growth Corp. Reports Second Quarter 2024 Financial Results

Fort Lauderdale, Florida–(Newsfile Corp. – August 12, 2024) – Flora Growth Corp. (NASDAQ: FLGC) (FSE: 7301) (“Flora” or the “Company”) reported today its financial and operating results for the three and six months ended June 30, 2024.

“In the second quarter of 2024, we at Flora, demonstrated an aptitude to make accretive acquisitions and form strategic partnerships to capitalize on the most robust market trends. In Germany, we acquired TruHC Pharma GmbH in response to the de-scheduling of cannabis, the reforms surrounding cultivation for personal use, the establishment of cannabis social clubs, and the removal of cannabis from the list of prohibited substances in the Narcotics Act. In the United States, we entered a joint venture with Althea Group Holdings to capitalize on the rapid growth in the beverages market. In Australia, we acquired Australian Vaporizers to expand our e-commerce foothold and Vessel’s reach,” said Clifford Starke, Chief Executive Officer.

“Our operating expenses and cash flows used in operating activities have decreased notably across the board compared to the prior period. We ended the quarter with cash of $6.1 million and set the stage for a wide array of financing alternatives to further fuel our business plan,” added Mr. Starke.

“Finally, we commend the U.S. for moving to reschedule cannabis U.S. federal law. We believe it is the beginning of a wave of favorable legislative reforms with both major party presidential candidates expressing support,” concluded Mr. Starke.

TruHC Acquisition

Flora acquired TruHC in an all-share deal valued at $6.4 million based on the closing price of Flora on March 28, 2024, of $2.31 per share. The first closing occurred on April 22, 2024, in which 2,135,199 Flora shares were issued in exchange for 77% of TruHC. The second closing involving the issuance of 635,363 Flora shares for the remaining 23% of TruHC will occur upon shareholder approval. TruHC is expected to contribute the following to Flora:

A GDP wholesale license and an EU-GMP processing and production license for medical cannabis. It also owns and operates an EU-GMP certified laboratory ready for instant cannabis analysis as required for the new Cannabis Social Clubs.
The facility of TruHC is a flexible production space with EU-GMP certified modules that can be extended and customized for any production process from processing to extraction and enables a license extension for a future in country cultivation of medical cannabis and supply of cannabis dispensaries expected to be opened in 2025 during phase 3 of legalization. TruHC also holds a narcotic license with EU-GMP certified storage.
TruHC’s licenses allow TruHC to apply for new medical cannabis and cultivation licenses and become an official cannabis test lab for upcoming cannabis social clubs. It also enables international import of seeds and flowers for future distribution.

Australian Vaporizers Acquisition

Flora acquired Australian Vaporizers in an all-share deal valued at $0.7 million based on the closing price of Flora’s common shares on June 3, 2024. The transaction closed on June 4, 2024.

Australian Vaporizers was founded in 2010 and has become one of the largest online retailers of vaporizers, hardware, and accessories in Australia. It is an online expert for aromatherapy products, specializing in dry herb vaporizers.
It has been providing vapes, accessories and knowledge to enthusiasts and newcomers alike through its website www.australianvaporizers.com.au.
Australian Vaporizers sold over 92,000 units to over 30,000 active customers through business to business and direct to consumer channels. Australian Vaporizers has the potential to drive synergies with Flora’s existing portfolio of brands, including selling Vessel Brand products in Australia, which is Flora’s fastest growing segment.

Joint Venture with Althea Group Holdings

Flora and Althea Group Holdings (“Althea”) established Peak USA JV LLC (“Peak USA”) – a 50/50 joint venture aiming to capitalize on the beverages market in the United States.

Peak USA will link Flora’s U.S. – based CPG team with Althea’s Peak Processing Solutions (“Peak”), which is a recognized market leader in cannabis-infused beverages. Peak has a 40% market share in Canada.
Peak USA will combine Flora’s brand-launching expertise with Althea’s processing experience to produce the next generation of beverages for the U.S. market. Peak contributes production know-how, including its world-class emulsion technology, while Flora brings a wealth of brand launching, sales and marketing expertise within the dynamic landscape of lifestyle brands in the U.S.
The partnership is strategically positioned to establish cannabis beverage distribution in the U.S. by adeptly handling regulations and facilitating market access via CPG channels like wine and liquor stores.
According to Headset Data, the beverage market segment currently represents only 1% to 3% of the U.S. cannabis market. First-time daily cannabis use overtook alcohol, with roughly 17.7 million users compared to 14.7 million for alcohol.

Financing Activities

The Company filed the required forms to initiative a Regulation A Offering at a maximum capacity of $75.0 million with Aegis Capital Corp. (“Aegis”) being the sole bookrunner on the Offering.
The Company entered an At-The-Market (“ATM”) Issuances Sales Agreement with Aegis with aggregate offering price of up to $3.8 million. The Company has not yet sold any shares as part of the ATM.
Flora closed an underwritten offering of 1.7 million common shares for aggregate gross proceeds of approximately $3.23 million, prior to deducting underwriting discounts and other offering expenses. The Company’s Chief Executive Officer, Clifford Starke, purchased shares in this offering.

Regulatory Developments

In April 2024, Germany embarked on a historic cannabis legalization.

Adults over the age of 18 in Germany are allowed to possess up to 50 grams of cannabis for private consumption and grow up to three plants. Adults are allowed to join nonprofit social clubs with a maximum of 500 members. Individuals are allowed to buy up to 25 grams per day, or a maximum of 50 grams per month.
With the largest population and the greatest purchasing power in Europe, Germanyboasts Europe’s fastest growing cannabis market. With the following 2 phases of German legalization expected in the coming 12-18 months, Germany is expected to become the largest federally legal adult use cannabis country.
With approximately 230,000 medical cannabis patients, Germany continues to lead the way in European medical cannabis as well. Following Germany are Italy, the Netherlands, Poland, Denmark and the Czech Republic, with the total number of cannabis patients in Europe is estimated to be 500,000 in 2023, and growth of around 500% is expected over the next five years.

In May 2024, the U.S. announced that his administration was moving to reschedule cannabis under U.S. federal law.

The Justice Department is expected to post its proposed rule to reclassify cannabis from Schedule I to Schedule III under the Controlled Substances Act in the Federal Register.
A 60-day public comment period is expected before the rule is potentially finalized. The White House announcement came shortly after reports emerged that the Drug Enforcement Administration was about to reclassify cannabis as a Schedule III drug.

New Product Launches and Partnerships

Vessel unveiled the second-generation Compass Rise – the next evolution in functionality and elegance. Built for the discerning connoisseur, Compass Rise embodies sophistication while delivering what consumers have come to expect from Vessel’s products. From its sleek design, cutting-edge technology, and the ability to stay upright, every aspect of Compass Rise reflects Vessel’s dedication to meeting changing market trends. Compass Rise features a nearly indestructible metal frame, enhanced heat settings, and first-in-class ergonomics. Compass Rise is now available for purchase on the Vessel Brand website, through Multi-State Operators (“MSOs”) and select retailers nationwide.
JustCBD introduced new products to its line of offerings – JustCBD+ Calm Gaba & L-Theanine Mixed Berry Gummies and JustCBD+ Sleep Magnesium and Melatonin Raspberry Gummies. These innovative gummies are designed to support stress management and promote relaxation, as well as enhance sleep quality. The JustCBD+ Calm Gaba & L-Theanine Mixed Berry Gummies are formulated with an optimal blend of Gaba and L-Theanine, renowned for their calming properties. These ingredients are combined to assist users in managing stress and attaining a state of relaxation. The mixed berry flavor enhances the experience, making stress relief both effective and amiable. Melatonin gummies are one of the Company’s best sellers.
The Company entered partnerships for the distribution of Vessel Brands in the United Kingdom, and in Israel with Althea Group Holdings Limited and IM Cannabis Corp., respectively.
Flora entered an exclusive distribution agreement with Me Raw Trade Ltd. to distribute both JustCBD and Vessel branded products in Poland.

Frankfurt Stock Exchange Listing

The Company’s common shares now trade on the Frankfurt Stock Exchange (“FSE”) under the symbol “7301”.

The FSE is one of the world’s largest (behind only the Nasdaq and NYSE) organized exchange-trading market in terms of turnover and dealings with securities. The electronic trading platform of the FSE, XETRA, has made it the world’s second largest fully electronic cash market with direct linkage to all other major European financial hubs.
This listing will help increase the Company’s trading liquidity and facilitate investment in Flora by European investors through the FSE listing as major financial hubs can be reached more easily.

U.S. Hemp Beverage Alliance

The Company has joined the U.S. Hemp Beverage Alliance.

Beverages represent only a marginal component of the industry with tremendous potential for growth. According to Whitney Economics, the total demand for hemp-derived cannabinoids in the U.S. is valued at more than $28 billion with the total economic impact of the industry on the U.S. economy being more than $79 billion.
Data Bridge Market Research estimates that the U.S. infused beverages market is expected to reach half a billion by 2030, with a CAGR of 14.7% during the forecast period.

Financial Highlights – Three Months Ended June 30, 2024

During the three months ended June 30, 2024, the Company reported:

Net loss of $2.7 million compared to a net loss of $44.6 million in the comparable quarter, an improvement of 94% quarter-over-quarter.
Cash used in operating activities of $0.3 million compared to cash used in operating activities of $3.5 million in the comparable quarter, an improvement of 91% quarter-over-quarter.
Total operating expenses of $6.7 million, compared to $44.0 million in the comparable quarter.
Adjusted EBITDA loss of $2.8 million compared to an Adjusted EBITDA loss of $3.9 millionin the comparable quarter.

JustCBD Highlights

Loss from continuing operations of $1.4 million and Adjusted EBITDA loss of $1.3 million in the quarter.
Maintained a gross profit margin of 34% on sales of $4.4 million. Just Internationalcontributed $0.2 million to sales across 11 countries.
The top selling products in the quarter included the Bear, Nighttime Bear and Peach Gummies.
Approximately 41% of revenues stemmed from our direct-to-consumer model, while approximately 59% was generated through business-to-business sales.
Over 120 new wholesale customers were added to our network in the quarter.

Vessel Highlights

Loss from continuing operations of $0.2 million and Adjusted EBITDA loss of $0.2 millionin the quarter.
Maintained a gross profit margin of 53% on sales of $1.4 million.
Core products represented 35% of sales and Compass products contributed 41% to sales; the largest individual item sold was Wood Slate/Walnut, adding 11% to sales.
Approximately 59% of revenues stemmed from our direct-to-consumer model, while approximately 41% was generated through business-to-business sales.
Finalized new product developments in the vaporizer and dry herb categories set to launch in the coming quarters.
Over 60 new wholesale customers were added to our network in the quarter, including several Multi-State Operators.

Phatebo Highlights

Income from continuing operations of $0.2 million and Adjusted EBITDA of $0.3 million in the quarter.
Earned $9.6 million in revenue with gross margins of 8.4%.
Branded pharmaceuticals were the largest contributors to sales, including medications from Merck, Vertex, Novartis, MSD, Novo Nordisk, AstraZeneca, Janssen, and Gilead Sciences.
All sales were business-to-business sales.

Financial Highlights – Six Months Ended June 30, 2024

During the six months ended June 30, 2024, the Company reported:

Net loss of $6.0 million compared to a net loss of $48.5 million in the comparable period, an improvement of 88% period over period.
Cash used in operating activities of $1.6 million compared to cash used in operating activities of $7.8 million in the comparable period, an improvement of 79% period-over-period.
Total operating expenses of $13.0 million, compared to $51.7 million in the comparable period.
Adjusted EBITDA loss of $4.3 million compared to an Adjusted EBITDA loss of $4.7 millionin the comparable period.

JustCBD Highlights

Loss from continuing operations of $1.3 million and Adjusted EBITDA loss of $1.2 million in the period.
Maintained a gross profit margin of 43% on sales of $9.8 million. Just Internationalcontributed $0.4 million to sales across 11 countries.
The top selling products in the quarter included the Nighttime Bear, Bear, Peach and CBD+ Calming Gummies.
Approximately 37% of revenues stemmed from our direct-to-consumer model, while approximately 63% was generated through business-to-business sales.
Over 260 new wholesale customers were added to our network in the period.

Vessel Highlights

Loss from continuing operations of $1.3 million and Adjusted EBITDA loss of $0.4 millionin the period.
Maintained a gross profit margin of 46% on sales of $2.7 million.
Compass products represented 36% of sales and Core products contributed 31% to sales; the largest individual item sold was Core Black, adding 8% to sales.
Approximately 56% of revenues stemmed from our direct-to-consumer model, while approximately 44% was generated through business-to-business sales.
Finalized new product developments in the vaporizer and dry herb categories set to launch in the coming quarters.
Over 95 new wholesale customers were added to our network in the period, including several Multi-State Operators.

Phatebo Highlights

Close to breakeven on income from continuing operations and Adjusted EBITDA of $0.4 million in the period.
Earned $18.8 million in revenue with gross margins of 6.8%.
All sales were business-to-business sales.

EBITDA and Adjusted EBITDA are non-U.S. GAAP measures. A reconciliation of U.S. GAAP to non-U.S. GAAP financial measures has been provided in the section titled “About Non-GAAP Financial Measures”. Important disclosures regarding the use of non-U.S. GAAP supplemental financial measures are also included below.

Board Appointment

The Company appointed Brendan Cahill as an independent director and member of each of the Company’s audit committee, compensation committee and nominating and corporate governance committee, effective May 2, 2024.
Mr. Cahill was President and Chief Executive Officer of Excellon Resources Inc. from 2012 to 2022. Previously, he was Vice President Corporate Development and Corporate Secretary of the Pelangio group of companies. He is currently a Director of the Group Elevan Resourecs Corp. and former director of KORE Mining Ltd. And Cryptostar Corp. He is a member of the Transplant Cabinet at the University Health Network and a member of the Law Society of Ontario.

About Non-U.S. GAAP Measures

EBITDA and Adjusted EBITDA are non-U.S. GAAP financial measures that do not have any standardized meaning prescribed by U.S. GAAP and may not be comparable to similar measures presented by other companies. We calculate EBITDA as total net income (loss) from continuing operations, plus (minus) income taxes (recovery), plus (minus) interest expense (income), plus depreciation and amortization. We calculate Adjusted EBITDA as EBITDA plus (minus) non-operating expense (income), plus share based compensation expense, plus asset impairment charges, plus (minus) unrealized loss (gain) from changes in fair value, plus charges related to the flow-through of inventory step-up on business combinations, plus other acquisition and transaction costs. Management believes that EBITDA and Adjusted EBITDA provide meaningful and useful financial information as these measures demonstrate the operating performance of the business.

Management believes that this non-U.S. GAAP financial information is useful as a supplement to comparable U.S. GAAP financial information. Management reviews these non-U.S. GAAP financial measures on a regular basis and uses them, together with financial measures included in the Company’s financial statements, to evaluate and manage the performance of the Company’s operations. These measures should be evaluated in conjunction with the comparable U.S. GAAP financial numbers reported by the Company.

The reconciliation of the Company’s Adjusted EBITDA, a non-U.S. GAAP financial measure, to net (loss) income from continuing operations, the most directly comparable U.S. GAAP financial measure, for the six months ended June 30, 2024 and is presented in the table below:

About Flora Growth Corp.

Flora Growth Corp. is a consumer-packaged goods leader and pharmaceutical distributor serving all 50 states and 28 countries with 20,000+ points of distribution around the world. For more information on Flora, visit www.floragrowth.com.

https://justcbdstore.com/

https://www.vesselbrand.com/

https://justcbdstore.uk/

https://www.phatebo.de/home-en

https://www.australianvaporizers.com.au/

‍

NEWS

‍

MANAGEMENT

SINCERELY,

DISCLAIMER

THIS WEBSITE/NEWSLETTER IS OWNED SUBSIDIARY BY DEDICATED INVESTORS, LLC.

OUR REPORTS/RELEASES ARE A COMMERCIAL ADVERTISEMENT AND ARE FOR GENERAL INFORMATION PURPOSES ONLY. WE ARE ENGAGED IN THE BUSINESS OF MARKETING AND ADVERTISING COMPANIES FOR MONETARY COMPENSATION. WE HAVE BEEN COMPENSATED A FEE OF SEVEN THOUSAND FIVE HUNDRED USD BY SIDEWAYS FREQUENCY LLC FOR A ONE DAY FLGC AWARENESS CAMPAIGN. NEVER INVEST IN ANY STOCK FEATURED ON OUR SITE OR EMAILS UNLESS YOU CAN AFFORD TO LOSE YOUR ENTIRE INVESTMENT. THE DISCLAIMER IS TO BE READ AND FULLY UNDERSTOOD BEFORE USING OUR SERVICES, JOINING OUR SITE OR OUR EMAIL/BLOG LIST AS WELL AS ANY SOCIAL NETWORKING PLATFORMS WE MAY USE.PLEASE NOTE WELL: DEDICATED INVESTORS LLC AND ITS EMPLOYEES ARE NOT A REGISTERED INVESTMENT ADVISOR, BROKER DEALER OR A MEMBER OF ANY ASSOCIATION FOR OTHER RESEARCH PROVIDERS IN ANY JURISDICTION WHATSOEVER.RELEASE OF LIABILITY: THROUGH USE OF THIS WEBSITE VIEWING OR USING YOU AGREE TO HOLD DEDICATED INVESTORS LLC, ITS OPERATORS OWNERS AND EMPLOYEES HARMLESS AND TO COMPLETELY RELEASE THEM FROM ANY AND ALL LIABILITY DUE TO ANY AND ALL LOSS (MONETARY OR OTHERWISE), DAMAGE (MONETARY OR OTHERWISE), OR INJURY (MONETARY OR OTHERWISE) THAT YOU MAY INCUR. THE INFORMATION CONTAINED HEREIN IS BASED ON SOURCES WHICH WE BELIEVE TO BE RELIABLE BUT IS NOT GUARANTEED BY US AS BEING ACCURATE AND DOES NOT PURPORT TO BE A COMPLETE STATEMENT OR SUMMARY OF THE AVAILABLE DATA. DEDICATED INVESTORS LLC ENCOURAGES READERS AND INVESTORS TO SUPPLEMENT THE INFORMATION IN THESE REPORTS WITH INDEPENDENT RESEARCH AND OTHER PROFESSIONAL ADVICE. ALL INFORMATION ON FEATURED COMPANIES IS PROVIDED BY THE COMPANIES PROFILED, OR IS AVAILABLE FROM PUBLIC SOURCES AND DEDICATED INVESTORS LLC MAKES NO REPRESENTATIONS, WARRANTIES OR GUARANTEES AS TO THE ACCURACY OR COMPLETENESS OF THE DISCLOSURE BY THE PROFILED COMPANIES. NONE OF THE MATERIALS OR ADVERTISEMENTS HEREIN CONSTITUTE OFFERS OR SOLICITATIONS TO PURCHASE OR SELL SECURITIES OF THE COMPANIES PROFILED HEREIN AND ANY DECISION TO INVEST IN ANY SUCH COMPANY OR OTHER FINANCIAL DECISIONS SHOULD NOT BE MADE BASED UPON THE INFORMATION PROVIDED HEREIN. INSTEAD DEDICATED INVESTORS LLC STRONGLY URGES YOU CONDUCT A COMPLETE AND INDEPENDENT INVESTIGATION OF THE RESPECTIVE COMPANIES AND CONSIDERATION OF ALL PERTINENT RISKS. READERS ARE ADVISED TO REVIEW SEC PERIODIC REPORTS: FORMS 10-Q, 10K, FORM 8-K, INSIDER REPORTS, FORMS 3, 4, 5 SCHEDULE 13D.DEDICATED INVESTORS LLC IS COMPLIANT WITH THE CAN SPAM ACT OF 2003. DEDICATED INVESTORS LLC DOES NOT OFFER SUCH ADVICE OR ANALYSIS, AND DEDICATED INVESTORS LLC FURTHER URGES YOU TO CONSULT YOUR OWN INDEPENDENT TAX, BUSINESS, FINANCIAL AND INVESTMENT ADVISORS. INVESTING IN MICRO-CAP AND GROWTH SECURITIES IS HIGHLY SPECULATIVE AND CARRIES AND EXTREMELY HIGH DEGREE OF RISK. IT IS POSSIBLE THAT AN INVESTORS INVESTMENT MAY BE LOST OR IMPAIRED DUE TO THE SPECULATIVE NATURE OF THE COMPANIES PROFILED.THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 PROVIDES INVESTORS A SAFE HARBOR IN REGARD TO FORWARD-LOOKING STATEMENTS. ANY STATEMENTS THAT EXPRESS OR INVOLVE DISCUSSIONS WITH RESPECT TO PREDICTIONS, EXPECTATIONS, BELIEFS, PLANS, PROJECTIONS, OBJECTIVES, GOALS, ASSUMPTIONS OR FUTURE EVENTS OR PERFORMANCE ARE NOT STATEMENTS OF HISTORICAL FACT MAY BE FORWARD LOOKING STATEMENTS. FORWARD LOOKING STATEMENTS ARE BASED ON EXPECTATIONS, ESTIMATES, AND PROJECTIONS AT THE TIME THE STATEMENTS ARE MADE THAT INVOLVE A NUMBER OF RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS OR EVENTS TO DIFFER MATERIALLY FROM THOSE PRESENTLY ANTICIPATED. FORWARD LOOKING STATEMENTS IN THIS ACTION MAY BE IDENTIFIED THROUGH USE OF WORDS SUCH AS PROJECTS, FORESEE, EXPECTS, WILL, ANTICIPATES, ESTIMATES, BELIEVES, UNDERSTANDS, OR THAT BY STATEMENTS INDICATING CERTAIN ACTIONS & QUOTE; MAY, COULD, OR MIGHT OCCUR. UNDERSTAND THERE IS NO GUARANTEE PAST PERFORMANCE WILL BE INDICATIVE OF FUTURE RESULTS. IN PREPARING THIS PUBLICATION, DEDICATED INVESTORS LLC HAS RELIED UPON INFORMATION SUPPLIED BY ITS CUSTOMERS, PUBLICLY AVAILABLE INFORMATION AND PRESS RELEASES WHICH IT BELIEVES TO BE RELIABLE; HOWEVER, SUCH RELIABILITY CANNOT BE GUARANTEED. INVESTORS SHOULD NOT RELY ON THE INFORMATION CONTAINED IN THIS WEBSITE. RATHER, INVESTORS SHOULD USE THE INFORMATION CONTAINED IN THIS WEBSITE AS A STARTING POINT FOR DOING ADDITIONAL INDEPENDENT RESEARCH ON THE FEATURED COMPANIES. THE ADVERTISEMENTS IN THIS WEBSITE ARE BELIEVED TO BE RELIABLE, HOWEVER, DEDICATED INVESTORS LLC AND ITS OWNERS, AFFILIATES, SUBSIDIARIES, OFFICERS, DIRECTORS, REPRESENTATIVES AND AGENTS DISCLAIM ANY LIABILITY AS TO THE COMPLETENESS OR ACCURACY OF THE INFORMATION CONTAINED IN ANY ADVERTISEMENT AND FOR ANY OMISSIONS OF MATERIALS FACTS FROM SUCH ADVERTISEMENT. DEDICATED INVESTORS LLC IS NOT RESPONSIBLE FOR ANY CLAIMS MADE BY THE COMPANIES ADVERTISED HEREIN, NOR IS DEDICATED INVESTORS LLC RESPONSIBLE FOR ANY OTHER PROMOTIONAL FIRM, ITS PROGRAM OR ITS STRUCTURE. DEDICATED INVESTORS LLC IS NOT AFFILIATED WITH ANY EXCHANGE, ELECTRONIC QUOTATION SYSTEM, THE SECURITIES EXCHANGE COMMISSION OR FINRA.