Why it increased more than 20% today

  • Flora Growth Corp (NASDAQ: FLGC) share price rose more than 20% during intraday trading today. This is why.

The share price of Flora Growth Corp (NASDAQ: FLGC), a leading global grower, manufacturer and distributor of cannabis products and brands, rose more than 20% during intraday trading today. Investors are responding positively to Flora Growth’s announcement that the company’s Board of Directors has authorized the repurchase of up to $5 million of its outstanding common shares as market conditions and a guarantee of the company’s liquidity.

The board believes that the drop in the market price of the company’s shares can be attributed in large part to weakness in the broader financial market in general and the cannabis sector in particular, coupled with the recent sale of several million shares by certain shareholders who acquired them. shares before the company’s initial public offering at a very low cost and had previously been subject to a one-year lock-up period that expired in mid-May.

Repurchases may be made from time to time through open market purchases, privately negotiated transactions, or by other means (including Rule 10b5-1 trading plans). And depending on market conditions and other factors, these buybacks may start or stop from time to time without notice. There can be no guarantees of how many shares (if any) the company may repurchase. And in no case may the company repurchase more than 5% of the total number of shares issued and outstanding as of the date hereof.

KEY QUOTES:

“We believe the potential to repurchase our shares at these levels represents a compelling opportunity to deploy available cash to drive shareholder value.”

“Flora continues to move aggressively to execute on its growth plans while improving gross profit margins and reducing corporate overhead. We are confident in the Company’s short-, medium- and long-term growth prospects based on our strong portfolio of brands in the market coupled with our cultivation and export capabilities and life sciences research. The buyback program provides us with the opportunity to increase our ownership in our portfolio of high-quality brands through our shares, which, in our opinion, trade well below the NAV.”

— Luis Merchan, President and CEO of Flora

Disclaimer: This content is for informational purposes. Before making any investment, you should do your own analysis.

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