Stock for Flora Growth Corp. (NASDAQ: FLGC) has been on quite the buzz today, shooting up 15.3% in the after-market. This growth surge comes after yesterday’s impressive trade session where the stock had steadily risen by an impressive 8.6% gain. FLGC, currently trading at $2.03 has been on a persistent growth wave for the last 10 days, turning traders’ heads. The Toronto-based cannabis supplier to the medical, pharmaceutical, and the cosmetic market has been making the news, explaining its current hype. In the recent cannabinoid stock growth wave, the promising FLGC stands perfectly positioned to embark on this oncoming upward peak.
Recent Flora Growth Expansion Initiatives
Wednesday brought big news to FLGC investors, with the company announcing a milestone expansion initiative. In its partnership with the German company Greenyard, Flora will be opening four physical stores, currently under construction, throughout Europe. Two of these will be in Germany, with the remainder in the Czech Republic. These physical stores will be serving as crucial zones for Flora products penetrating the European market, driving substantial growth. Furthermore, reporting a $1.9b revenue for 2020, FLGC stands positioned to capture significant market share, whilst riding a huge growth wave.
Similarly, last week’s Flora board restructure also brought the stock into the spotlight. The company announced the appointment of Tim Leslie, former Amazon executive into its board position, signaling further promise for FLGC. Moreover, CEO Luis Merchan, who had driven the company’s growth in the US markets was pronounced chairman of the board. This significant executive restructures communicates Flora’s shift from a developing market player to a full-scale international distributor.
US Congress Vote on Marijuana Legalization, and Implications for FLGC
FLGC’s impressive growth spurt does not come in isolation, but rather ties into a much broader cannabis stock price swelling. A recent motion by the US House of Representatives pushed a vote next week, to determine marijuana’s federal legalization. As a result, growth prospects of worldwide ‘weed stocks have been on a high, which partially explains FLGC’s rise. Therefore, the market is clearly betting on stocks with the most promise and capability which it deems could translate this potential into actual value.
Along with the big weed stock winners of today, FLGC went big today. Its recent store openings in Europe, along with its board restructure, deem it an ideal stock to bet on amidst the rising tide of cannabinoid stocks.