Flora Growth Corp. Announces $5 Million Share Repurchase Program
June 16 2022 - 7:05AM
Business Wire
Flora Growth Corp. (NASDAQ: FLGC) (the “Company” or “Flora”) a
leading all-outdoor cultivator, manufacturer and distributor of
global cannabis products and brands, today announced that the
Company’s Board of Directors (the “Board”) has authorized the
repurchase of up to $5 million of its outstanding common shares as
market conditions and the Company’s liquidity warrant.
“We believe that the potential to repurchase our shares at these
levels represents a compelling opportunity to deploy available cash
to drive shareholder value,” said Luis Merchan, Flora’s Chairman
and CEO. The Board believes that the decline in the market price of
the Company’s shares is largely attributable to the weakness of the
broader financial market in general, and the cannabis sector in
particular, coupled with the recent selling of several millions of
shares by certain shareholders who acquired such shares prior to
the Company’s IPO at a very low-cost basis and who had previously
been subject to a one-year lockup period which expired in
mid-May.
Merchan added, “Flora continues to move assertively to execute
its growth plans while simultaneously improving gross profit
margins and reducing corporate overhead expenses. We are confident
in the Company’s short, medium and long-term growth prospects based
on our strong in-market brand portfolio together with our
cultivation and export capabilities and life sciences research. The
repurchase program affords us the opportunity to increase our
ownership in our portfolio of high-quality brands through our
shares, which in our view are trading well below NAV.”
Repurchases may be made from time to time through open market
purchases, privately negotiated transactions or by other means
(including Rule 10b5-1 trading plans). Depending on market
conditions and other factors, these repurchases may be commenced or
suspended from time to time without prior notice. There can be no
assurances how many shares, if any, the Company may repurchase and,
in no event shall the Company repurchase more than five percent of
the total number of issued and outstanding shares as of the date
hereof.
About Flora Growth Corp. Flora is building a connected,
design-led collective of plant-based wellness and lifestyle brands
designed to deliver the most compelling customer experiences in the
world, one community at a time. As the operator of one of the most
extensive outdoor cannabis cultivation facilities, Flora leverages
natural, cost-effective cultivation practices to supply cannabis
derivatives to its commercial, house of brands, and life sciences
divisions. Visit www.floragrowth.com or follow @floragrowthcorp on
social media for more information.
Forward-Looking Statements
This press release contains ‘‘forward-looking statements,’’ as
defined by federal securities laws. Forward-looking statements
reflect Flora’s current expectations and projections about future
events at the time, and thus involve uncertainty and risk. The
words “believe,” “expect,” “anticipate,” “will,” “could,” “would,”
“should,” “may,” “plan,” “estimate,” “intend,” “predict,”
“potential,” “continue,” and the negatives of these words and other
similar expressions generally identify forward looking statements.
Such forward-looking statements are subject to various risks and
uncertainties, including those described under the section entitled
“Risk Factors” in Flora’s Annual Report on Form 20-F filed with the
SEC on May 9, 2022, as such factors may be updated from time to
time in Flora’s periodic filings with the SEC, which are accessible
on the SEC’s website at www.sec.gov. Accordingly, there are or will
be important factors that could cause actual outcomes or results to
differ materially from those indicated in these statements. These
factors should not be construed as exhaustive and should be read in
conjunction with the other cautionary statements that are included
in this release and in Flora’s filings with the SEC. While
forward-looking statements reflect Flora’s good faith beliefs, they
are not guarantees of future performance. Flora disclaims any
obligation to publicly update or revise any forward-looking
statement to reflect changes in underlying assumptions or factors,
new information, data or methods, future events or other changes
after the date of this press release, except as required by
applicable law. You should not place undue reliance on any
forward-looking statements, which are based only on information
currently available to Flora (or to third parties making the
forward-looking statements).
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version on businesswire.com: https://www.businesswire.com/news/home/20220616005181/en/
Investor Relations: James Williams ir@floragrowth.com
Public Relations: Cassandra Dowell +1 (858) 221-8001
flora@cmwmedia.com
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