Flora Growth regains Nasdaq compliance with new director

Published 30/08/2024, 22:38
Flora Growth regains Nasdaq compliance with new director

Flora Growth Corp. (NASDAQ:FLGC), a pharmaceutical preparations company, has announced the appointment of a new independent director to its board, regaining compliance with Nasdaq's listing rules. The company, headquartered in Fort Lauderdale, Florida, faced potential delisting issues after the departure of a board member left it short of the required number of independent directors.

On Monday, the company disclosed the resignation of director Kevin Taylor, which was not due to any disagreements with the company's operations or practices. Following Taylor's resignation, Flora Growth's audit committee was left with fewer than the three independent members mandated by Nasdaq Listing Rule 5605(c)(2)(A). The company notified Nasdaq of this development on August 27, 2024.

By Thursday, the company had addressed the shortfall by appointing Harold Wolkin as an independent director. Wolkin brings over three decades of investment banking experience to the role and currently serves on the boards of several publicly listed companies. Recognized as an "audit committee financial expert," Wolkin's qualifications include being a Chartered Financial Analyst and a member of the Institute of Corporate Directors.

Flora Growth confirmed that Wolkin meets the independence and expertise requirements set by Nasdaq rules. His term will last until the next annual meeting of stockholders unless he resigns or is removed sooner.

In other recent news, Flora Growth Corp. reported a decrease in Q1 2024 revenues to $18 million due to discontinuation of unprofitable product lines. However, the company also highlighted a 13% improvement in net loss and an 18% decrease in operating expenses. In a strategic venture, Flora Growth Corp. and Althea Group Holdings have formed a joint venture, Peak USA JV LLC, with the aim of entering the U.S. hemp-derived beverage market, each contributing $250,000 of operating capital.

Additionally, Flora Growth's subsidiary, JustCBD, introduced two new gummy products aimed at supporting stress management and sleep quality, expanding its product line. In the company's 2024 Annual and Special Meeting of Shareholders, shareholders approved several key proposals including the election of four directors and a significant amendment to the Company's 2022 Incentive Compensation Plan.

The shareholders also reappointed Davidson & Company LLP as the company's auditors for the fiscal year ending December 31, 2024. These are recent developments that are expected to influence the company's direction in the upcoming year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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