Global Weed Brand To Buy Australian Vaporizes For $1.7M In Shares
Portfolio Pulse from Nina Zdinjak
Flora Growth Corp. (NASDAQ:FLGC) has agreed to acquire Australian Vaporizes Pty Limited from Lifeist Wellness Inc. (TSXV:LFST) (FRANKFURT: M5B) (OTC:LFSWF) for $1.7 million in shares. The deal is expected to close in Q4 2023. Australian Vaporizes is expected to contribute $5.2 million in annual revenues, $1.2 million in gross margins, and $500,000 in net income to Flora. The acquisition is expected to drive synergies with Flora's existing brands, including selling Vessel Brand products in Australia.
September 18, 2023 | 11:43 am
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NEUTRAL IMPACT
Lifeist Wellness Inc. is selling Australian Vaporizes to Flora Growth Corp. for $1.7 million in shares. The deal aligns with Lifeist's long-term business plans.
The sale of Australian Vaporizes aligns with Lifeist's strategic and financial long-term business plans. However, the impact on the stock price is uncertain as it depends on how the market perceives the company's transformation into a portfolio of wellness-focused products and ventures.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Flora Growth Corp. is acquiring Australian Vaporizes, which is expected to boost its annual revenues by $5.2 million. The deal is expected to close in Q4 2023.
The acquisition of Australian Vaporizes is expected to be immediately accretive to Flora, providing significant contributions to its revenues, gross margins, and net income. This could potentially drive the stock price up in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100