(RTTNews) - Flora Growth Corp. (FLGC), a cannabis products provider, said on Monday that it has signed a definitive deal to acquire Franchise Global Health Inc. (FGH), a Canadian operator in the medical cannabis and pharmaceutical industry, in an all share transaction.
The financial terms of deal were not disclosed.
Luis Merchan, CEO of Flora Growth, said: "Through this proposed acquisition, we are connecting our commercial infrastructure and medical cannabis product portfolio to the German and EU medical markets, while gaining direct access to European pharmaceutical distributions. We believe Franchise will significantly increase our commercial international revenue and provide essential distribution to German pharmacies and a growing wholesale market."
For the first-half, FGH's German reportable segment posted a net profit of C$0.4 million, on revenue of C$30.1 million.
The proposed merger is expected to yield at least $3 million of annualized cost synergies within the first year following the completion of the acquisition.
The acquisition of Franchise Global will result in the indirect acquisition of its subsidiaries, including the Hilzingen-based Phatebo GmbH, and ACA Müller ADAG Pharma Vertriebs GmbH.
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