Flora Growth Completes Acquisition of United Beverage Distribution Inc.

Flora Growth Corp. (NASDAQ:FLGC) recently announced the completion of its acquisition of United Beverage Distribution Inc., a South Dakota corporation specializing in the distribution of cannabis-infused drinks. The acquisition was formalized through a Share Purchase Agreement entered into on January 30, 2025.

According to the terms of the Share Purchase Agreement, Flora Growth Corp. purchased 100% of the issued and outstanding common shares of United Beverage Distribution Inc. The agreement involved the acquisition of the United Common Shares from a group of sellers, including individuals associated with Flora Growth Corp. such as directors Clifford Starke and Sammy Dorf, and Flora’s chief financial officer, Dany Vaiman.

The purchase price included 923,744 shares of common stock of Flora Growth Corp., constituting 4.99% of the outstanding shares of common stock as of January 30, 2025, issued to the Sellers who are not Flora insiders. Additionally, promissory notes with a five-year maturity period that accrue interest at a rate of 6% per annum, amounting to $2,845,700 in aggregate principal, were issued to the Sellers.

The Share Purchase Agreement, which received unanimous approval from the disinterested directors of Flora Growth Corp., incorporates standard representations, warranties, covenants, and indemnity provisions. Flora Growth Corp. completed the transaction on February 4, 2025, issuing the Flora Shares and the promissory notes as agreed upon.

The Company indicates that the foregoing descriptions of the material terms of the Share Purchase Agreement and the promissory notes are not exhaustive, and interested parties are directed to refer to Exhibit 10.1 and Exhibit 10.2 attached to Flora’s Current Report on Form 8-K for a comprehensive understanding of the agreement.

The issuance of Flora Shares to the Sellers has been conducted in compliance with the exemptions from registration under Section 4(a)(2) of the Securities Act of 1933, as amended, as detailed in the disclosures made in accordance with Item 3.02 of the Form 8-K filing.

For a detailed view of the transaction and related agreements, the financial community and interested stakeholders are encouraged to review the complete documentation provided in the Form 8-K filed by Flora Growth Corp. on February 5, 2025.

This latest development underscores Flora Growth Corp.’s strategic move to enhance its portfolio and foothold in the cannabis-infused beverages distribution sector, positioning itself for further growth and expansion in the dynamic marketplace.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Flora Growth’s 8K filing here.

Flora Growth Company Profile

Flora Growth Corp., together with its subsidiaries, engages in the growth, cultivation, and development of medicinal cannabis and medicinal cannabis derivative products worldwide. It operates through three segments: House of Brands, Commercial and Wholesale, and Pharmaceuticals. The company cultivates, processes, and supplies medicinal-grade cannabis flower, and cannabis derived medical and wellness products.