A stock that has managed to come onto the surface following a strong move over the course of the past few days is FLGC stock. Flora Growth Corp (NASDAQ:FLGC), which is involved in the outdoor cultivation, manufacturing, and distribution of cannabis products, was in the news earlier on in the week.
Flora Growth Corp
Company Name: Flora Growth Corp
Flora Growth Corp Summary:
Flora is building a connected, design-led collective of plant-based wellness and lifestyle brands designed to deliver the most compelling customer experiences in the world, one community at a time.
As the operator of one of the largest outdoor cannabis cultivation facilities, Flora leverages natural, cost-effective cultivation practices to supply cannabis derivatives to its commercial, house of brands, and life sciences divisions.
Now, let’s analyze the latest news from FLGC stock:-
#1 Expects 100% Topline Growth For Fiscal 2023
On Monday the company announced that it expected its revenues for the fiscal year of 2023 to be in the $90 million to $105 million range. It was a significant new announcement from the company and on the day of the announcement the stock clocked gains of as much as 40%. In this regard, it should also be noted that a survey by FactSet expected the company to post revenues of $95.6 million for the year.
The company included the revenues that were projected from its new acquisition Franchise Global Health, a Germany-based business, in its projections.
FLGC stock reacted bullishly after the news.
#2 Gets Additional 180 Day Extension by Nasdaq to Regain Compliance
Earlier on in the month of January 2023, the company had come into the news once again after it announced that it had got an extension of 180 days from NASDAQ so as to fulfill the $1 minimum bid price requirement that is part of the listing rules of the exchange.
The initial period of 180 days to regain compliance expired back on January 4, 2023. The extension could be construed as a positive development for the company as it tries to stay listed on the exchange.
#3 Acquisition of Franchise Global Health
The acquisition of Franchise Global Health, which had been completed in December last year could well be a cornerstone for the company’s growth.
Thanks to the acquisition the company is going to establish a presence in the fast-growing German market and sell medical cannabis through more than 1200 pharmacies as well as distribution outlets spread across 28 nations. Franchise Global Health generated a gross profit of C$2.8 million and revenues of C$42 million in the nine-month period that ended on September 30, 2022.
After the recent rally, the stock might find resistance at a higher lever, and profit booking may be healthy for now.
Take a look at the CIFR stock, which is flying after a key update.