Flora Growth buys Franchise Global Health in all-stock cannabis deal in German market

Flora Growth Corp. FLGC, +3.88% said Monday it would issue up between 36.62 million and 43.53 million common shares to acquire Franchise Global Health Inc. FGH, +12.50% a multi-national medical cannabis and pharmaceutical operator with principal operations in Germany. Based on Flora Growth’s share price of 53 cents on Friday, the deal is currently valued at up to $23.5 million in stock. The acquisition comes as Germany takes steps to legalize adult use cannabis. FGH’s German unit reported C$30.1 million ($22 million) and net income of C$400,000 in the first half of 2022. Shares of Flora Growth Corp. have fallen 69.7% in 2022 compared to a loss of 59.8% by the Global C Cannabis ETF POTX, +0.77%.