Cannabis firm Flora Growth acquires JustCBD wellness brand for $16M, shares

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Marijuana cultivator and product manufacturer Flora Growth acquired CBD brand JustCBD for $16 million plus 9.5 million privately issued shares.

The share compensation is subject to adjustment under certain circumstances, according to a regulatory filing.

JustCBD’s brand portfolio includes CBD-infused consumer packaged goods products such as gummies, tinctures, and topicals.

The company operates a manufacturing facility and distribution center in Florida.

Its direct-to-consumer business has more than 300,000 customers, according to a Flora news release, and revenue of $28 million in its 2020 fiscal year.

“With the support of Flora’s strong balance sheet, we believe JustCBD is now positioned to expand into international markets where CBD products are permissible, including Germany, Mexico, and Colombia,” Flora, based in Miami and Toronto, noted in the release.

Flora said the acquisition creates the potential for synergies with its existing brands, which include skin care, food, and beverage products.

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The company, which has a cultivation and processing division in Colombia, announced a deal in late 2021 to purchase vape hardware brand Vessel.

Flora Growth shares trade on the Nasdaq as FLGC.