Flora Growth Corp. (NASDAQ: FLGC) is a cultivator of outdoor, organic cannabis. In addition to cannabis flower, Flora Growth also utilizes derivatives in cosmetics, hemp products, food & beverage, and more. Shares of the organic cannabis company saw shares rally 29% through early trading on Friday, August 20, 2021. Over the past three months, Flora Growth has seen average daily volume of 3.39 million shares. However, volume of 23.43 million shares or dollar volume of $263.12 million, has already exchanged hands through early trading Friday.
Shares of Flora Growth are gaining after the company announced first half 2021 financial results and provided guidance for the second half. For the six-month period ending June 30, 2021, Flora Growth reported revenues of $2 million with a gross profit of 60%. This compared to revenues of $100,000 during the same period in 2020. The company did report a net loss of $4 million, but management notes almost $3 million worth of one-time costs associated with its initial public offering (IPO) heavily impacted the bottom line results.
During the second quarter 2021, Flora Growth reached a number of key objectives. The Canadian cannabis company effectively launched its IPO on the Nasdaq Capital Market exchange. Furthermore, Flora Growth entered into an agreement to acquire 100% of Koch & Gsell, the manufacturer of the Swiss temp and tobacco brand Heimat. Flora Growth also established Flora Lab, a manufacturing division that operates in a 16,000-sq-ft facility with several GMP certifications.
The cannabis company also placed a $2.4 million strategic investment into Hoshi International, which will open up Flora’s product distribution into the European Union. Aside from the EU, Flora Growth also expanded into the United Kingdom and Central America through new international distribution partnerships. The latest expansion puts Flora Growth’s cannabis product footprint to thirteen markets.
Flora is already kicking off the second half of 2021 on a strong note. The company’s food & beverage division, Kasa Wholefoods, signed a sales agreement to supply products to Tropi, Colombia’s largest consumer packaged goods company. Since the deal was announced in July 2021, Kasa has already completed its first purchase order, which holds a value of $1.1 million. Management ultimately anticipates future sales from this agreement to reach around $2 million per month, as their CBD and hemp products expand into the country. As a result of the strong start to the second half 2021, management placed revenue guidance between $9 million and $11 million for the back half of the year.
Disclosure: Neither Matt Rego nor Spotlight Growth have any position or relationship with any companies mentioned in this article. No payment was made to create this article. This article should not be taken as a solicitation or recommendation to buy or sell any securities. Please conduct your own research and consult your financial advisor to determine your risk tolerance and investment path. We are not licensed brokers or investment advisors.