Fort Lauderdale, Florida--(Newsfile Corp. - May 14, 2024) - Flora Growth Corp. (NASDAQ: FLGC) ("Flora" or the "Company"), a consumer-packaged goods leader and pharmaceutical distributor, reported today its financial and operating results for the three months ended March 31, 2024.
"2024 has been a catalyst-rich period for Flora. Legislators in the primary markets in which we operate, namely the U.S. and Germany, have demonstrated a willingness to advance a progressive cannabis agenda. In Germany, 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, represent historical milestones," said Clifford Starke, Chief Executive Officer.
"We have been proactive in responding to Germany's legislation. In April, we acquired TruHC Pharma GmbH ("TruHC") - an entity with a strategically built German cannabis platform with EU-GMP processing, production, laboratory, and storage licenses. TruHC also holds GDP wholesale licenses for import and export, as well the requisite medical cannabis licenses," added Mr. Starke.
"Additionally, reports have emerged suggesting the U.S. Drug Enforcement Administration may reclassify cannabis from a Schedule I to a Schedule III substance. It could be the first real step towards a progressive federal policy in over 50 years. We believe this potential landmark reform could have positive implications for the Company," concluded Mr. Starke.
TruHC Acquisition
Flora acquired TruHC in 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:
Financing Activities
New Product Launches and Partnerships
Financial Highlights
During the three months ended March 31, 2024, the Company reported:
JustCBD Highlights
Vessel Highlights
Phatebo Highlights
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
Conference Call
A conference call hosted by senior management will be held on Wednesday, May 15, 2024, at 11:00 AM EST. Please join the conference call approximately ten minutes prior to the scheduled start time.
Dial-in details for the conference call are as follows:
Toll-Free (North America): 1-844-763-8274
USA Toll: +1-412-717-9224
Canada Toll: +1-647-484-8814
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 income (loss), the most directly comparable U.S. GAAP financial measure, for the periods ended March 31, 2024, and 2023 is presented below:
For the quarter ended March 31, 2024 (In thousands of United States dollars) | JustCBD | Vessel | Phatebo | Corporate & Other | Consolidated | ||||||||||
Net income (loss) from continuing operations | $ | 110 | $ | (1,077 | ) | $ | (6 | ) | $ | (2,401 | ) | $ | (3,374 | ) | |
Income tax expense | - | - | 64 | 64 | 128 | ||||||||||
Interest expense (income) | - | - | 36 | (14 | ) | 22 | |||||||||
Depreciation and amortization | 48 | 17 | 6 | 3 | 74 | ||||||||||
EBITDA | 158 | (1,060 | ) | 100 | (2,348 | ) | (3,150 | ) | |||||||
Non-operating loss (1) | 1 | - | - | 131 | 132 | ||||||||||
Share based compensation | - | - | - | 10 | 10 | ||||||||||
Asset impairment | - | 864 | - | 34 | 898 | ||||||||||
Unrealized loss from changes in fair value (2) | - | - | - | 607 | 607 | ||||||||||
Adjusted EBITDA | $ | 159 | $ | (196 | ) | $ | 100 | $ | (1,566 | ) | $ | (1,503 | ) |
For the quarter ended March 31, 2023 (In thousands of United States dollars) | JustCBD | Vessel | Phatebo | Corporate & Other | Consolidated | ||||||||||
Net income (loss) from continuing operations | $ | 246 | $ | (557 | ) | $ | 54 | $ | (2,929 | ) | $ | (3,186 | ) | ||
Income tax expense (recovery) | - | - | 25 | (103 | ) | (78 | ) | ||||||||
Interest expense (income) | 3 | - | 21 | (1 | ) | 23 | |||||||||
Depreciation and amortization | 196 | 352 | 7 | 309 | 864 | ||||||||||
EBITDA | 445 | (205 | ) | 107 | (2,724 | ) | (2,377 | ) | |||||||
Non-operating (gain) (1) | (2 | ) | - | - | (10 | ) | (12 | ) | |||||||
Share based compensation | - | - | - | 654 | 654 | ||||||||||
Unrealized loss from changes in fair value (2) | - | - | - | 883 | 883 | ||||||||||
Charges related to the flow-through of inventory step-up on business combination | - | - | 45 | - | 45 | ||||||||||
Adjusted EBITDA | $ | 443 | $ | (205 | ) | $ | 152 | $ | (1,197 | ) | $ | (807 | ) |
(1) Non-operating loss (gain) include foreign exchange losses.
(2) Unrealized loss from changes in fair value includes changes in the value of the Company's contingent consideration associated with its acquisition of JustCBD.
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://www.phatebo.de/home-en
Investor Relations:
Investor Relations This email address is being protected from spambots. You need JavaScript enabled to view it.
Clifford Starke This email address is being protected from spambots. You need JavaScript enabled to view it.
Media:
This email address is being protected from spambots. You need JavaScript enabled to view it.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains "forward-looking statements," as defined by U.S. 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. These forward-looking statements include, but are not limited to, statements about: legislative developments in the United States and Germany and the potential impacts thereof, the efficacy and impact of the TruHC acquisition, obtaining shareholder approval for the second closing of the TruHC acquisition, the contributions TruHC may make to Flora, the use of the ATM and the efficacy and impact of new product launches and partnerships. Such forward-looking statements are subject to various and risks and uncertainties, including those described under section entitled "Risk Factors" in Flora's Annual Report on Form 10-K filed with the United States Securities and Exchange Commission (the "SEC") on March 28, 2024, 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/edgar. 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 on information currently available to Flora (or to third parties making the forward-looking statements).
Last Trade: | US$1.65 |
Daily Change: | -0.20 -10.81 |
Daily Volume: | 545,606 |
Market Cap: | US$22.060M |
October 14, 2024 October 08, 2024 September 26, 2024 September 24, 2024 |
Else Nutrition is changing the face of early childhood nutrition with clean, sustainable, plant-based products. The company has developed the world’s first whole plant-based infant formula that is targeting the $100+ billion global...
CLICK TO LEARN MOREUGE International develops, owns, and operates commercial and community solar projects in the United States and strategic markets abroad. Our distributed energy solutions deliver cheaper, cleaner energy to businesses and consumers...
CLICK TO LEARN MORECOPYRIGHT ©2022 GREEN STOCK NEWS