Flora Growth Corp. has acquired 100% of the equity interests of Just Brands LLC and High Roller Private Label LLC for cash consideration of $16 million and 9.5 million privately issued Flora common shares, subject to certain potential future adjustments. Just Brands and High Roller are the owners of the JustCBD brand and associated operations.
The JustCBD operations consist of a manufacturing facility and distribution center located in Fort Lauderdale, Fla. The products under the brand portfolio include assorted gummies, tinctures, vape cartridges and creams, among many others.
Acquisition Highlights
Flora expects JustCBD’s financial performance to immediately contribute to Flora’s 2022 revenues and earnings. Flora also intends to leverage synergies between its existing brand portfolio, including Vessel, Tonino Lamborghini and Mind Naturals, with JustCBD’s extensive U.S. distribution network to further amplify revenue growth for these brands.
To date, the majority of JustCBD’s sales have been derived from the U.S. wellness market, where it has developed into a prominent and highly sought-after brand. With the support of Flora’s strong balance sheet, Flora believes JustCBD is now positioned to expand into international markets where CBD products are permissible, including Germany, Mexico and Colombia.
JustCBD’s database of over 300,000 customers increases Flora’s existing customer base to over 500,000 customers. Members of the JustCBD operations team are expected to join the Flora team as integral leaders of Flora’s U.S. expansion strategy. This includes JustCBD’s CEO Hussein Rakine.
Flora will explore integrating its supply chain by utilizing the CBD oils and isolates from its Cosechemos cultivation with JustCBD products to leverage its owned, cost-advantaged cultivation to drive lower cost of goods.
“We are thrilled to announce this news today and welcome the JustCBD team to Flora. To build such a recognizable brand in this noisy, rapid-growth market is a testament to everyone at JustCBD,” said Luis Merchan, CEO of Flora. “This acquisition continues to strengthen Flora’s foothold in the U.S. wellness market as well as providing meaningful growth acceleration and delivering human capital to the Flora organization. Additionally, there is incredible opportunity to leverage our economically-advantaged cultivation to support the expansion of the JustCBD brand in the global market.”
“Our team is incredibly excited to join Flora and rapidly expand JustCBD’s presence in new markets with new growth capital and an established international presence,” said Rakine. “Since the beginning, we have worked hard to build JustCBD into a prominent wellness brand in a hyper-growth space by delivering consistent experiences that have resulted in our loyal customer base. By combining our product portfolio with Flora’s, we believe we have an industry leading wellness offering that will thrill our existing customers and attract new ones as we reach new markets.”
Flora is building a connected, design-led collective of plant-based wellness and lifestyle brands that is designed to deliver one of the most compelling customer experiences in the world, one community at a time. Flora leverages natural, cost-effective cultivation practices to supply cannabis derivatives to its diverse business divisions of cosmetics, hemp textiles, and food and beverage.
