- This article discusses the significant acquisition of Australian Vaporizers by Flora Growth Corp., enhancing the company's revenue and margins.
- An in-depth look is provided into the deal specifics, projected financial contributions, and alignment of this acquisition with Flora Growth Corp.'s expansive growth strategy.
Flora Growth Corp., a burgeoning player in the global cannabis market, has announced a definitive agreement for acquiring Australian Vaporizers Pty Limited. The deal, valued at approximately $1.7 million, will see Flora exchange 600,676 common shares for all outstanding shares of Australian Vaporizers, marking an important milestone in the company's growth.
The acquisition, expected to be completed in Q4 2023, further bolsters Flora Growth Corp.'s global reach and product portfolio. Australian Vaporizers, a subsidiary of health-tech company Lifeist Wellness Inc., is a leading provider of high-quality vaporizers and accessories in Australia — intersecting ideally with Flora Growth's existing business operations.
Australian Vaporizers' financial performance, both past and projected, paints an encouraging picture for the acquisition. In the last six months, the Australian firm brought in $2.5 million in revenue, $600,000 in gross margins, and a net income of $25,000. Projections for the coming period are even more promising, with an estimated contribution of $5.2 million in annual revenue, $1.2 million in gross margins, and $500,000 in net income.
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