Flora Growth Corp. Announces Pricing of $5.0 Million Registered Direct Offering
December 09 2022 - 8:30AM
Business Wire
Flora Growth Corp. (NASDAQ: FLGC) ("Flora'' or the "Company"), a
leading all-outdoor cultivator, manufacturer and distributor of
global cannabis products and brands, announced today that it has
entered into securities purchase agreements with institutional
investors for the purchase and sale of 12,500,000 of the Company’s
common shares, no par value (the “Common Shares”), pursuant to a
registered direct offering (the “Offering”), and warrants to
purchase up to 12,500,000 Common Shares (the “Warrants”). The
combined purchase price for one Common Share and one Warrant will
be $0.40. The Warrants will have an exercise price of $0.40 per
Common Share, will be exercisable immediately following the date of
issuance and will expire five years from the initial date of
issuance.
The aggregate gross proceeds from the Offering will be
approximately $5.0 million before deducting fees and other
estimated expenses. The Company expects to use the net proceeds
from the Offering (i) for capital expenditures; (ii) to increase
operating capacity; (iii) for working capital and (iv) for other
general corporate purposes. The Offering is expected to close on or
about December 13, 2022, subject to the satisfaction of customary
closing conditions.
A.G.P./Alliance Global Partners is acting as the sole placement
agent for the Offering.
The Company has also amended the terms of the warrants issued to
certain institutional investors in the November 2021 public
underwritten offering that are also purchasing shares in this
Offering to reduce the exercise price of such warrants to
$0.40.
The Offering is being made pursuant to a “shelf” registration
statement on Form F-3 (File No. 333-267585) previously filed with
and declared effective by the U.S. Securities and Exchange
Commission (the “SEC”) on October 5, 2022. A prospectus supplement
describing the terms of the Offering will be filed with the SEC and
will be available on the SEC’s website located at
http://www.sec.gov. Electronic copies of the prospectus supplement
may be obtained, when available, from A.G.P./Alliance Global
Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by
telephone at (212) 624-2060, or by email at
prospectus@allianceg.com.
This press release is for informational purposes only and shall
not constitute an offer to sell or the solicitation of an offer to
buy these securities, nor shall there be any sale of these
securities, in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
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 largest 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.
Cautionary Statement Concerning 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 amended, 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/20221209005113/en/
Investor Relations: Sean Mansouri, CFA
ir@floragrowth.com
Public Relations: Cassandra Dowell +1 (858) 221-8001
flora@cmwmedia.com
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