Flora Growth Colombian Assets Sale Anticipated To Contribute $6.1M In Annual Savings
Portfolio Pulse from Vuk Zdinjak
Flora Growth Corp. (NASDAQ:FLGC) is selling its Colombian subsidiaries and assets to a private company for CA$800,000 ($605,000). The sale includes all of Flora's operations in Colombia and is expected to close by July 31, 2023. The company anticipates annual savings of $6.1 million from this and other strategic changes. Flora's 2023 revenue guidance, which included estimates relating to the Colombian assets, is being reevaluated. Matthew Cohen, general counsel, has resigned from the company.
July 26, 2023 | 2:40 pm
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Flora Growth Corp. is selling its Colombian assets, which is expected to result in annual savings of $6.1 million. The company's 2023 revenue guidance is being reevaluated, and the general counsel has resigned.
The sale of Colombian assets is a significant move for Flora Growth Corp., which is expected to result in substantial annual savings. However, the reevaluation of the 2023 revenue guidance and the resignation of the general counsel introduce uncertainty, which may impact the stock price in the short term.
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IMPORTANCE 75
RELEVANCE 100