Flora Growth bets on cannabis reform in U.S., Germany to reverse losing trend

Florida-based hemp company Flora Growth Corp. (NASDAQ: FLGC) reported a net loss of $3.4 million for its most recent quarter, which ended March 31, bringing the company back to the red after a brief stint of profitability last year.

Revenues were just over $18 million for the quarter, down from $19.3 million a year prior. Total operating expenses were $6.3 million, down from $7.7 million from the same period in 2023.

Flora Growth’s trio of hemp product subsidiaries – JustCBD, Vessel, and Phatebo – reported $100,000 in income from continuing operations, a loss of $1.1 million, and “closer to breakeven on loss,” respectively, the company reported in a press release.

Still, company leadership expressed optimism for both federal cannabis reform in the U.S. and also in Germany, where Flora Growth entered earlier this year with the all-stock acquisition of TruHC.

“Legislators in the primary markets in which we operate, namely the U.S. and Germany, have demonstrated a willingness to advance a progressive cannabis agenda,” CEO Clifford Starke said in the release. “In Germany, the descheduling of cannabis, the reforms surrounding cultivation for personal use, the establishment of cannabis social clubs, and the removal of cannabis from the list of prohibited substances in the Narcotics Act, represent historical milestones.”

In Germany, Flora Growth plans to sell home cannabis grow kits, along with marijuana seeds and cuttings, to get in on the ground-floor of the consumer-focused market.

Flora Growth has also been busy expanding its European footprint with new partners to distribute its hemp-based products in the United Kingdom and Poland, and also in Israel, with distribution agreements with Althea Group Holdings Limited and IM Cannabis Corp.

During the quarter, Flora Growth closed on a $3.23 million underwriting deal for 1.7 million common shares, and entered an at-the-market sales agreement with Aegis Capital Corp. for $3.8 million.

At the end of the quarter, Flora Growth had $24.2 million in total assets, including $4.1 million in cash, against $21.1 million in total liabilities.