Flora Growth Completes Acquisition of Vessel Brand Inc.
November 15 2021 - 7:05AM
Business Wire
- Acquisition provides Flora with an immediate foothold in the
North American cannabis market by acquiring a rapidly growing
company with trailing 12-months revenue of $6.6M and year-over-year
growth of 90%
- Acquisition diversifies Flora’s premium brand portfolio through
Vessel’s strong position in the luxury cannabis consumer technology
market
- Key Vessel team members will join the executive bench and guide
the growth of Flora’s brand portfolio, with an initial focus on
enhancing the U.S. marketing and sales strategies for the Stardog,
Mind Naturals, and Ô (Awe) brands
Flora Growth Corp. (NASDAQ: FLGC) (“Flora” or the “Company”), a
leading all-outdoor cultivator and manufacturer of global cannabis
products and brands, announces today that it has closed the
acquisition of Vessel Brand Inc. (“Vessel”). As set forth below,
Flora has acquired Vessel for aggregate consideration of US$30M,
consisting of a combination of cash and the issuance of Flora
common shares.
“We are incredibly excited to welcome the Vessel team into our
Company. They are exceptional brand builders with a proven track
record of launching brands and capturing market share in the
rapidly expanding U.S. cannabis landscape,” said Luis Merchan,
President and CEO of Flora Growth. “With this acquisition now
closed, we can focus on the execution of our combined expansion
strategy. The integration of our two organizations is well underway
and the Vessel team is expected to substantially enhance the
branding and marketing function of Flora Growth as we look to
further increase market share in the global cannabis and wellness
markets.”
Since its inception in 2018, Vessel’s go-to-market strategy for
direct-to-consumer sales in the U.S. and international cannabis
markets resulted in rapid revenue growth. Today, Vessel has
achieved trailing 12-months revenue of $6.6M and year-over-year
growth of 90%. Flora will invest in the expansion of Vessel’s
market share in the U.S. and international markets, where Vessel’s
established relationships with U.S. multi-state operators and
Canadian licensed producers provide Flora with what management
believes is an important foothold in the North American cannabis
market. Vessel’s leadership will complement Flora’s existing
executive team with deep experience in cannabis, sales, marketing,
design, and production. This includes Founder and CEO, James Choe,
CFO, Garrett Potter, VP of Marketing, Jessie Casner, and VP of
Performance, Jason Choe.
“We are looking forward to formally joining the Flora team and
supporting their vision of becoming a global leader in plant-based
health and wellness,” said James Choe, Founder and CEO of Vessel.
“From unrivaled cost-structure to an impressive and expanding brand
portfolio, Flora has built a strong foundation for growth which we
are now well-positioned to capitalize on in the rapidly expanding
cannabis market.”
About the Transaction
Pursuant to the terms of the definitive agreement between Flora,
Vessel, and certain related third parties, Vessel has merged into a
wholly-owned subsidiary of Flora, and Flora has acquired 100% of
the equity interests of Vessel for consideration consisting of $8.0
million in cash and 4,557,318 privately issued Flora common
shares.
Certain shareholders of Vessel that received in excess of a
majority of the Flora common shares issued as part of the
transaction consideration have entered into lock-up agreements
restricting the transfer of such common shares for a period of six
(6) months from the Closing.
About Vessel Brand Inc.
An industry leader in cannabis consumer technology, Vessel works
tirelessly to bring forth innovation and new designs that set
industry standards. Vessel’s promise is to make every experience
more expressive and personal, and to deliver the best performance
in its line, not only for its loyal customers but for brand
partners as well. For more information, please visit
www.vesselbrand.com.
About Flora Growth Corp.
Flora is building a connected, design-led collective, of
plant-based wellness and lifestyle brands, that delivers compelling
customer experiences, one community at a time. As the operator of
one of the largest outdoor cannabis cultivation facilities, Flora
leverages natural, cost-effective cultivation practices to supply
cannabis derivatives to its diverse business divisions of
cosmetics, hemp textiles, and food and beverage. Visit
www.floragrowth.com or follow @floragrowthcorp on social for more
information.
Cautionary Statement Concerning Forward-Looking
Statements
This document contains forward-looking statements. In addition,
from time to time, we or our representatives may make
forward-looking statements orally or in writing. We base these
forward-looking statements on our expectations and projections
about future events, which we derive from the information currently
available to us. Such forward-looking statements relate to future
events or our future performance, including the size of markets for
cannabis and cannabis products; Flora’s ability to execute on its
research and pharmaceutical strategies; the results of Flora’s
research; the collaboration with third parties; our business
prospects and opportunities; and the acquisition of Vessel. You can
identify forward-looking statements by those that are not
historical in nature, particularly those that use terminology such
as “may,” “should,” “expects,” “anticipates,” “contemplates,”
“estimates,” “believes,” “plans,” “projected,” “predicts,”
“potential,” or “hopes” or the negative of these or similar terms.
In evaluating these forward-looking statements, you should consider
various factors, including our ability to change the direction of
the Company; our ability to keep pace with new technology and
changing market needs; and the competitive environment of our
business. These and other factors may cause our actual results to
differ materially from any forward-looking statement.
Forward-looking statements are only predictions. The
forward-looking events discussed in this press release and other
statements made from time to time by us or our representatives may
not occur, and actual events and results may differ materially and
are subject to risks, uncertainties and assumptions about us. We
undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of uncertainties and
assumptions, or the forward-looking events discussed in this
document and other statements made from time to time by us or our
representatives not occurring, except as may be required by
applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20211115005577/en/
Investor Relations: Evan Veryard
evan.veryard@floragrowth.com
Public Relations: Cassandra Dowell +1 (858) 264-6600
flora@cmwmedia.com
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