Flora Growth enacts 1-for-39 reverse stock split on Nasdaq

Flora Growth Corp. (NASDAQ:FLGC) implemented a 1-for-39 reverse stock split of its common shares, effective at 5:00 p.m. Eastern Time on Sunday. The company, currently valued at $11.5 million and trading near its 52-week low, stated that its shares would begin trading on a post-split basis on the Nasdaq Capital Market starting Monday. InvestingPro analysis indicates the company has been facing significant financial challenges, with the stock down over 50% year-to-date.

According to a press release statement, the share consolidation was approved by shareholders at the company’s annual and special meeting held on June 30, 2025, where shareholders authorized a split ratio between 1-for-10 and 1-for-100. The board of directors finalized the 1-for-39 ratio on July 10, 2025.

As a result of the reverse split, every 39 issued and outstanding common shares were automatically reclassified into one new common share. The company reported that there were no changes to the rights or preferences of its common shares. Proportionate adjustments will be made to the exercise or conversion prices and the number of common shares underlying outstanding equity awards, convertible securities, and warrants, as well as to the number of shares issued and issuable under the company’s equity incentive plans.

No fractional shares were issued in connection with the reverse split. Any resulting fractional shares were rounded up to the nearest whole share. The company stated that ownership percentages did not meaningfully change as a result of the rounding process.

The reverse split was formalized by filing Articles of Amendment to Flora Growth’s amended and restated Articles of Incorporation with the Ontario Ministry of Public and Business Service Delivery and Procurement.

This information is based on a statement included in the company’s filing with the Securities and Exchange Commission.

In other recent news, Flora Growth Corp. announced a 1-for-39 share consolidation of its issued and outstanding common shares, which will take effect on August 3, 2025. Following this, the shares are expected to resume trading on a post-consolidation basis on the Nasdaq Capital Market. Additionally, Flora Growth shareholders approved several proposals at the 2025 Annual and Special Meeting. These included an amendment to the company’s 2022 Incentive Compensation Plan, increasing the number of common shares reserved for issuance from 2,500,000 to 4,500,000.

In a strategic move, Flora Growth has also diversified its investment portfolio by allocating $1 million into various cryptocurrencies. The investment includes $400,000 each in Ethereum and Solana, as well as $100,000 each in Sui and Ripple. This diversification indicates Flora Growth’s interest in the potential of digital assets. These developments reflect Flora Growth’s ongoing strategic initiatives and shareholder-approved changes.

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