Flora Growth, an all-outdoor cultivator, manufacturer and distributor of global cannabis products and brands, announced today that its wholly-owned subsidiary, Just Brands, has acquired substantially all of the assets pertaining to the brand No Cap Hemp.
The company acquired the No Cap assets without paying any consideration at closing. Instead, Flora will pay to the sellers 10% of the gross revenue received from the sale of No Cap products up to a maximum of $2 million.
“This transaction will allow Flora to immediately benefit from a profitable, cash flow positive and growing business,” said Luis Merchan, Chairman and CEO of Flora Growth. “This strategic acquisition demonstrates our disciplined capital allocation approach that is consistent with both short-term needs and long-term vision as a leading global cannabis company. We look forward to increasing our product offering through this transaction while broadening our sales team in the process.”
The No Cap acquisition will fast-forward the introduction of flower and pre-rolls to Flora’s growing product portfolio as well as smokeables into JustBrand’s product portfolio. JustBrands will develop and further expand on their flower and smokeable line as well as distribute the No Cap brand into Flora’s approximately 14,000 points of distribution.
The No Cap acquired assets are expected to add approximately 75 SKUs to Flora’s product portfolio as well as the “No Cap” and “Moonblunt” trademarks. No Cap’s gas infusion technology should also complement Flora Labs' manufacturing capabilities.