Flora Growth Corp. Reports 2024 Financial Results

Fort Lauderdale, Florida–(Newsfile Corp. – March 24, 2025) – Flora Growth Corp. (NASDAQ: FLGC) (FSE: 7301) (“Flora” or the “Company”) reported today its financial and operating results for the year ended December 31, 2024.

“The re-election of President Donald Trump presents a renewed opportunity for meaningful cannabis reform in the United States. His track record of signing the 2018 Farm Bill into law was a watershed moment for hemp and CBD, fueling a multi-billion-dollar industry and setting the stage for broader cannabis policy shifts. With growing bipartisan support for cannabis legalization and an evolving market landscape, we are optimistic that a second Trump administration will embrace regulatory clarity, unlock capital markets, and pave the way for an expansion of THC-infused consumer products. Flora stands ready to seize these opportunities and drive the industry forward,” said Clifford Starke, Chief Executive Officer.

“Flora is committed to being at the forefront of cannabis innovation, and we are thrilled to welcome industry pioneer Sammy Dorf to our leadership team. Sammy’s track record as Co-Founder of Verano-a multi-state operator and cannabis powerhouse-brings unmatched expertise and strategic vision to Flora’s expansion into the THC-infused beverage sector. Together, we are positioning Flora to capitalize on a category poised to disrupt traditional alcohol consumption. With evolving regulatory landscapes and shifting consumer preferences, we believe THC-Infused beverages represent the next frontier, and Flora intends to lead the charge.”

Sammy Dorf, Verano Co-Founder, Joined Flora as Executive Chairman

This strategic appointment ushers in an exciting new chapter as Flora expands its footprint in the growing THC-infused beverage market and bolsters its global licensing initiatives.Mr. Dorf brings expertise and a track record of success to Flora. As Co-Founder and former Chief Growth Officer of Verano Holdings Corp. (“Verano”), he was instrumental in Verano’s rise as a cannabis industry leader. His achievements include raising significant capital, securing more than 40 licenses across 14 states, and building operations in key markets such as Illinois, Maryland, Nevada, Pennsylvania, and Ohio. Today, Verano is one of the largest and most successful vertically integrated cannabis companies in the United States with revenues exceeding $925 million in its most recently completed fiscal year.Mr. Dorf will leverage his deep expertise in licensing, strategic partnerships, and operational scaling to drive growth. His expansive network and relationships with MSOs will be vital in unlocking new markets, forging high-value collaborations, and scaling Flora’s operations. Mr. Dorf’s unparalleled experience in obtaining licenses in complex and competitive cannabis markets will be invaluable as Flora navigates the evolving European landscape and pursues pilot cannabis licenses in Europe. The ability to secure these coveted licenses is critical for gaining early market entry and building a strong foothold in the industry.The addition of Mr. Dorf comes at a time when Flora accelerates its entry into the THC-Infused beverage market. Peak has produced over ten million cans of cannabis beverages – an unmatched feat attesting to its experience and expertise. Peak’s dynamic portfolio includes popular brands like Señorita-a sophisticated tequila-inspired beverage, naturally crafted, carbonated with fast onset Mexican agave flavor. On November 12, 2024, Agrify Corporation announced plans to acquire the Señorita brand of THC beverages. Other brands powered by Peak include Cookies, Tweed and Propulsion by Canopy Growth, Teapot by the Boston Beer Company, Deep Space, Sweet Justice, and Ray’s Lemonade. Flora’s Peak USA is positioned to revolutionize this burgeoning sector.

Regulatory Developments

Flora calls on President Trump to take immediate action on cannabis reform. Flora commends President Trump for his statements in support of cannabis reform and urges his administration to prioritize these critical reforms around rescheduling and SAFE banking that will create economic growth, address inequalities, and open pathways for significant advancements in the space. President Trump has shown support for the cannabis sector by backing a Florida marijuana legalization initiative and advocating for federal cannabis banking report. President Trump’s positions suggest a growing awareness within the Republican Party of the advantages cannabis reform can bring. Trump has also signaled openness to rescheduling cannabis at the federal level. Flora acknowledges the pivotal role President Trump played in opening the doors for the cannabinoid industry through the signing of the 2018 Farm Bill. It decriminalized industrial hemp at the federal level, enabling a surge in new economic activity as states developed programs to cultivate, process, and sell hemp-derived products. In the years following, the hemp industry became a thriving area with related businesses and retailers providing high-quality cannabinoid products to consumers. The appointment of Robert Kennedy Jr. to lead the U.S. Department of Health and Human Services signals a potential turning point for the cannabis industry. Mr. Kennedy is a vocal advocate for cannabis legalization and tax reform. His support for freeing up banking services for cannabis businesses could alleviate one of the industry’s most significant challenges, enabling broader financial access and operational stability.In Germany, Flora commends the government’s recent approval of new legislation aimed at liberalizing the cultivation of industrial hemp. Introduced by Cem Özdemir, Germany’s Minister of Food and Agriculture, the updated regulatory framework will create new opportunities for the cultivation and commercialization of industrial hemp. The legislation, passed with broad support, removes the previously restrictive “abuse clause” and provides a more streamlined path for industrial hemp producers.Flora expressed its strong support for Germany’s historic cannabis model city projects in Frankfurt and Hannover. These initiatives, marking Germany’s first controlled cannabis retail efforts, will allow the cities to gather valuable insights on consumption behaviors, public health, and strategies to combat the illegal cannabis market, moving the country’s cannabis policy from theory to practice.Flora intends to submit applications for participation in upcoming cannabis pilot programs in Germany to the Federal Ministry for Agriculture and Food (“BMEL”). These programs aim to effectively reduce the illicit market, expand health prevention, and provide an objective foundation for ongoing discussions surrounding cannabis.

New Product Launches and Partnerships

Captain Hooter, a globally recognized cannabis connoisseur, will assist the Company as an advisor. With over three decades of experience, Captain Hooter will offer his expertise to enhance Flora’s product development, brand positioning, and market expansion strategies. Captain Hooter, founder of www.captainhooter.com, has earned global recognition as a cannabis connoisseur.Flora added Love Hemp’s product range to its e-commerce platform. This partnership will expand Flora’s product offering by introducing Love Hemp’s range of functional products, oil sprays, chocolate balls, and 10-pack gummies to its online customers.Flora signed a cooperation agreement with Flowzz.com, marking its expansion in the field of German e-commerce. This partnership will establish a dedicated Flora e-commerce store on the Flowzz Webshop, integrating a wide range of Flora’s products into one of the most popular online cannabis marketplaces in Germany. Flora will have exclusivity for accessories, cannabis seeds, cuttings and seedlings.Omar Sharif Jr., internationally acclaimed activist, author, actor, and model, was appointed as a Special Advisor. This reflects Flora’s ongoing dedication to advocating for diversity, inclusion, and progressive social change within the global cannabis community.Flora launched Element, the latest innovation from its premium lifestyle brand, Vessel. Element is a water pipe for dry herb connoisseurs designed in California and engineered with quality materials such as durable brass, anodized aluminum, and impact and heat-resistant borosilicate glass – giving it a longer lifespan. It is made to fit up to two grams of cannabis. It has superior aeration and percolation filters and cools for purer, smoother, more flavorful hits. Element is ergonomically shaped to fit comfortably in your hand, providing a natural and effortless grip during use. Element comes apart into 6 pieces for quick and easy cleaning and comes with a carry case. This makes maintenance a breeze and prevents clogging.Flora launched Compass Rise Crimson. Featuring a high-capacity battery for extended use, preheat functionality for optimal session readiness, and precise low-voltage settings to customize the experience, Compass Rise is designed to elevate every session. The device’s upright design ensures oils remain in their ideal position, showcasing Vessel’s commitment to thoughtful craftsmanship.Flora appointed Patrick Moloney as Head of Product Development for Vessel. Mr. Moloney’s career highlights include serving as Design Manager on New Product Innovation at Dyson, where he was responsible for leading a team in developing consumer products. His experience in the highly competitive consumer goods sector was further honed during his tenure as Senior Manager of New Sciences at British American Tobacco, where he was tasked with creating next-generation product offerings. Most recently, as Chief Product Officer at InLab Ventures, Mr. Moloney led the development of innovative products and services across multiple industries, focusing on sustainability and user experience.Mr. Moloney is an inventor of over 300 patents who has brought to market iconic inventions, including the Dyson Supersonic Hairdryer and Dyson Airblade Tap, as well as developing foundational concepts for Dyson’s floorcare range. At British American Tobacco, Mr. Moloney’s contributions resulted in over 170 inventions and 120 patent filings, representing about 25% of British American Tobacco’s total filings during his tenure.Mr. Moloney will oversee Vessel’s product development, leveraging his extensive experience to drive innovation, enhance product quality, and strengthen Vessel’s market position.

Financing Activities

The Company sold an aggregate of 425,000 of the Company’s common shares at a price of $1.67 per common share for gross proceeds of $0.7 million pursuant to subscription agreements with institutional investors in tandem of a Regulation A offering on Form 1-A. The Company closed a registered direct offering of 2,850,000 of the Company’s common shares at a public offering price of $1.25 per common share for gross proceeds of $3.6 million.

Curaleaf Holdings, Inc. Supply Agreement

Announced a new supply agreement with Curaleaf Holdings, Inc. (“Curaleaf”). The agreement will facilitate the importation of high-quality medical cannabis products into Germany, one of the fastest-growing markets in Europe following the legalization of cannabis on April 1, 2024.The agreement will enable Flora to import Curaleaf’s medical cannabis strains and products, ensuring a consistent and reliable supply for Germany patients and healthcare providers. Flora is focused on expanding its distribution network across the country, leveraging its existing relationships with over 1,200 pharmacies.According to Prohibition Partners, sales of German medical cannabis sales are expected to reach $450 million in 2024. Germany continues to lead the way in European medical cannabis with the total number of cannabis patients in Europe is estimated to be 500,000, and growth of around 500% is expected over the next five years. Furthermore, the legal German cannabis market is projected to reach an estimated $4.6 billion in value by 2034 according to a recent market analysis by researchers at The Niche Research.

Dr. Manfred Ziegler Joined Flora as Managing Director in Germany

Dr. Manfred Ziegler is a renowned figure in the pharmaceutical industry, bringing decades of expertise, notably his leadership as Managing Director of CC Pharma and his pivotal role in the sale of CC Pharma to Tilray, one of the world’s leading cannabis companies.Dr. Ziegler’s tenure at CC Pharma marked a period of growth and strategic innovation. As Managing Director, he transformed the company into one of Europe’s leading pharmaceutical distributors, with a robust portfolio and a significance presence in the European market.

Launch of Parallel Import (“PI”) Business in Germany

The PI Business will enable Flora to provide European consumers with a diverse range of pharmaceuticals at competitive prices while ensuring compliance with the stringent regulations governing the EU market. Flora is a prominent distributor of pharmaceutical products in the European Union and a holder of a medical cannabis licence in Germany.The PI Business will initially focus on Germany, which is the largest market in Europe, with plans to expand into other EU member states. In addition to enhancing product availability and affordability, the PI Business will contribute to the Company’s overall turnover and bottom line.In a PI Business, products are typically sourced from countries where they are available at a lower price due to factors such as exchange rates, taxes, or other market conditions. These products are then imported into another country where they are sold at a lower price compared to the officially imported or distributed products.

Entry into U.S. Beverage Business

Launched its first THC-infused beverages, Melo and Cloud Cola.Entered a distribution partnership with Sunshine State Distributing (“Sunshine”). This agreement will see Sunshine, a leading distributor in the Southeastern United States, manage the distribution of Flora’s hemp-infused beverages, starting with Melo and Cola.THC-infused beverage brand, Melo, was made available in Total Wines & More (“Total”). This beverage is poised to reach a broader audience with imminent placement in the retail networks of Total, one of the most recognized retailers of innovative and premium alcoholic and non-alcoholic products in the United States.Completed its specialized beverage facility and receipt of requisite permitting, on time and on budget. The facility’s capabilities include over 100 formulations. The Company aims to power the biggest and most recognizable brands in the cannabis sector.With the completion of this facility, Flora is poised to scale production and accelerate its entry into the U.S. THC-infused beverage market. The facility will provide the necessary emulsion to the Company’s Melo brand and other brands in the pipeline. It will also enable the Company to enter strategic distribution agreements.

Update on Strategic Portugal Investment

Clifford Starke was appointed to the Board of Directors of HoshiCap (“Hoshi”), which has a cannabis-cultivation facility in Portugal.Flora initially made an equity investment of $2.4 million into Hoshi in 2021, securing a 10% ownership in the company. The project in Portugal currently employs 18 full-time staff. To date, approximately $20 million has been invested into constructing a world-class facility. Hoshi’s new financial partner agreed to take over the capital expenditures and operational expenses in exchange for an equity stake in the company. As a result of this collaboration, Hoshi has made headway in the following areas:Facility Construction: Completing the first phase of construction at the facility, which includes a 1,200-square meter greenhouse with a production capacity of up to 1,500 Kilograms per year.Licensing Inspection: Conducting a licensing inspection by the Portuguese regulator and receiving its good agricultural and collecting practice (“GACP”) production and processing license.Cannabis Clones: Receiving the first 70 cannabis clones as part of the pre-licensing process.

Flora Leads the Charge in Australia with Innovative Solutions for Pharmacies

With the Australian Government’s new regulations shifting the supply of disposable nicotine vaporizers and other vaping devices from retail environments to pharmacies, Flora is committed to providing a one-stop shop for pharmacies’ needs.Australian Vaporizers (“AV”) was one of the first entities in the country to register its products and launch Vessel’s portfolio in the country. Since its inception, AV has sold $32 million worth of product. According to the Australian Health Practitioner Regulatory Agency, there is approximately one million Australians who turn to medicinal cannabis treatments. Out of a population of 27 million people, this represents 3.7%.AV has undertaken several initiatives to help pharmacies navigate the new environment:Establishing Relationships with Pharmacies: AV has been actively building relationships with pharmacies across Australia, engaging in educational programs to inform pharmacists and medical practitioners about the benefits and usage of their products, as well as the legal requirements for supplying devices under the new regulations.Securing Import Permits: AV successfully obtained its import permit and has seen some of its flagship products approved for import in recent weeks. This development allows AV to supply pharmacies with a wide range of compliant products.Developing Distribution Channels: AV has been establishing robust distribution channels to ensure the longevity of its partnerships with pharmacies. AV is also exploring partnerships with cannabis warehouses to create a ‘plug & play’ system for pharmacies, enabling them to fulfill patient orders efficiently. This system will offer patients the convenience of uploading their prescriptions online and choosing between ‘click & collect’ or home delivery through a trusted partner.Expanding Outreach and Fulfillment Capabilities: AV is in the process of partnership with major distribution chains to broaden its outreach and enhance fulfillment capabilities to further strengthen AV’s position in the Australian market.Consignment Agreements with Independent Pharmacies: AV has entered into consignment agreements with trusted independent pharmacies, fostering beneficial relationships that support both the pharmacies and the patients they serve.

Black Friday and Cyber Monday Sales Across JustCBD and Vessel Brands

Sales of $600,000 over the Black Friday and Cyber Monday weekend. This significant milestone highlights the growing demand for Flora’s products under the JustCBD and Vessel brands.Driven by strategic promotions, targeted marketing, and a seamless e-commerce experience, Flora capitalized on the holiday shopping surge, achieving year-over-year sales growth in both revenue and customer acquisition.

Financial Highlights – Year Ended December 31, 2024

During the year ended December 31, 2024 the Company reported:

Net loss from continuing operations of $15.9 million compared to a net loss from continuing operations of $46.7 million in the comparable period. Cash used in operating activities of $5.0 million compared to cash used in operating activities of $8.4 million in the comparable period.Total operating expenses of $28.1 million, compared to $68.1 million in the comparable period. Adjusted EBITDA loss of $9.5 million compared to an Adjusted EBITDA loss of $6.9 million in the comparable period.

JustCBD Highlights

Loss from continuing operations of $3.0 million and Adjusted EBITDA loss of $2.2 million in the period. Maintained a gross profit margin of 39% on sales of $17.8 million. The top selling products in the quarter included the Nighttime Bear, Bear, Peach and CBD+ Calming Gummies. Approximately 40% of revenues stemmed from our direct-to-consumer model, while approximately 60% was generated through business-to-business sales. Over 350 new wholesale customers were added to our network in the period.

Vessel Highlights

Loss from continuing operations of $2.1 million and Adjusted EBITDA loss of $0.9 million in the period. Maintained a gross profit margin of 52% on sales of $5.2 million.Compass products represented approximately 40% of sales and Core products contributed another 40% to sales; the largest individual item sold was Compass Rise/Obsidian, adding 8% to sales. Approximately 60% of revenues stemmed from our direct-to-consumer model, while approximately 40% was generated through business-to-business sales. Over 150 new wholesale customers were added to our network in the period, including several Multi-State Operators.

Phatebo Highlights

Loss from continuing operations of $0.3 million and Adjusted EBITDA loss of $0.2 million in the period. Earned $35.9 million in revenue with gross margins of 6.1%. All sales were business-to-business sales.

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 Appointments

The Company appointed Manfred Leventhal as an independent director and member of each of the Company’s audit committee, compensation committee and nominating and corporate governance committee, effective December 5, 2024.Mr. Leventhal significant experience driving growth, strategy and governance in small to mid-cap companies as an executive and board member. Mr. Leventhal holds a CPA & CGA (Ontario, Canada) designation and a Bachelor of Commerce from the University of The Witwatersrand, Johannesburg, South Africa where he majored in applied economics.

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) changes in financial instruments 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 loss from continuing operations, the most directly comparable U.S. GAAP financial measure, for the year ended December 31, 2024 and is presented in the table below:

(In thousands of United States dollars)
JustCBD

Vessel

Germany

Australian VaporizersCorporate & OtherConsolidated

Net loss from continuing operations$(3,007)
$(2,129)
$(1,004)
$(643)
$(9,124)
$(15,907)Income tax expense (recovery)21(186)
(46)
52(177)Interest expense59814213213Depreciation and amortization
168624881535768EBITDA
(2,778)
(2,058)
(560)
(673)
(9,034)
(15,103)Non-operating loss3–21461485Share based compensation—-2,7792,779Asset impairment5851,206-414322,237Changes in financial instruments fair value(57)
—(202)
(259)Charges related to the flow-through of inventory step-up on business combinations—79-79Other acquisition and transaction costs
—-266266Adjusted EBITDA$(2,247)
$(852)
$(560)
$(159)
$(5,698)
$(9,516)

The reconciliation of the Company’s Adjusted EBITDA, a non-U.S. GAAP financial measure, to net (loss) income from continuing operations, the most directly comparable U.S. GAAP financial measure, for the year ended December 31, 2023 is presented in the table below:

(In thousands of United States dollars)
JustCBD

Vessel

Germany

Corporate & OtherConsolidated

Net (loss) income from continuing operations$(22,790)
$(8,372)
$274$(15,781)
$(46,669)Income tax expense (recovery)-3101(1,732)
(1,628)Interest expense (income) 9292(11)
92Depreciation and amortization742736288292,335EBITDA
(22,039)
(7,631)
495(16,695)
(45,870)Non-operating loss (income) 214-(174)
(158)Share based compensation—1,5911,591Asset impairment22,8927,402-9,21339,507Changes in financial instruments fair value (964)
–(1,027)
(1,991)Charges related to the flow-through of inventory step-up on business combinations
—4545Adjusted EBITDA$(109)
$(215)
$495$(7,047)
$(6,876)

About Flora Growth Corp.

Flora Growth Corp.’s mission is to become the leading NASDAQ small-cap international cannabis company. FLGC is a cannabis-focused 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.

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 and policy developments in the United States and Germany and the potential impacts thereof, the efficacy and impact of new product launches and partnerships, anticipated growth of the cannabis industry in the United States and Germany, the Company’s PI business in Germany, the Company’s supply agreements with Curaleaf and Blossom Genetics, the Company’s expansion into the United States beverage business and the Company’s investment in Hoshi. 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 24, 2025, 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).

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