Florida-based Just Brands, a subsidiary of Toronto’s Flora Growth Corp., acquired all of Florida-based No Cap Hemp Co.’s assets.
Instead of a cash or share-based deal, Fort Lauderdale-headquartered Just Brands will pay 10% of gross revenue from sales of No Cap products, according to a news release.
The total amount that Just Brands will pay is capped at $2 million.
“This transaction will allow Flora to immediately benefit from a profitable, cash flow positive and growing business,” Flora Growth Chair and CEO Luis Merchan said in a statement.
Flora Growth pointed out in its release that the deal will add:
- Smokable products to the Just Brands line.
- Roughly 75 stock-keeping units (SKUs) to Flora’s portfolio as well as the Moonblunt and No Cap brands.
- Smokable products to the Just Brands line.
The release also noted that “No Cap’s gas infusion technology should also complement Flora Labs’ manufacturing capabilities” and that the Davie, Florida-based company’s gas infusion technology should augment Flora Labs’ manufacturing capabilities.
This acquisition comes on the heels of Flora Growth’s February purchase of the JustCBD wellness brand for $16 million.
“No Cap’s unique product offering coupled with JustCBD’s robust distribution positions Flora to be the leader in the alternative cannabinoid segment,” Merchan added.
For the first half of 2022, Flora reported a revenue increase to $15 million, an increase of 117% from the second half of 2021.
