Flora Growth shareholders approve share plan amendment and board elections

Shareholders of Flora Growth Corp. (NASDAQ:FLGC) held their 2025 Annual and Special Meeting on Monday, approving several proposals related to compensation plans, board elections, and share consolidation, according to a statement based on a SEC filing. The meeting comes at a challenging time for the company, whose stock has declined over 40% in the past six months and currently trades at $0.59, according to InvestingPro data. With a market capitalization of just $13.6 million, Flora Growth appears undervalued based on InvestingPro’s Fair Value analysis.

At the meeting, shareholders approved an amendment to the company’s 2022 Incentive Compensation Plan, raising the number of common shares reserved for issuance from 2,500,000 to 4,500,000. The amendment was previously authorized by the board on April 11, pending shareholder approval.

Shareholders also approved the repricing and amendment of vesting terms for certain outstanding Stock Appreciation Rights (SARs) granted to employees and executive officers. The exercise price for December 2023, August 2024, and December 2024 SARs was set at $0.58 per right, equal to the closing share price on NASDAQ on Monday. The vesting schedules for SARs held by named executives were amended so that tranches vest as the share price increases in 25% increments from the new exercise price, with nine tranches for Starke SARs and eight tranches for Vaiman SARs.

The board election saw Clifford Starke, Sammy Dorf, Edward Woo, Manfred Leventhal, and Harold Wolkin elected as directors to serve until the 2026 Annual Meeting or until successors are appointed. Voting results for each director showed a majority in favor, with Starke receiving 7,329,521 votes for and 1,500,756 against.

Davidson & Company LLP was reappointed as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025, with 12,637,347 votes for and 225,303 against.

Shareholders also approved a proposal granting the board authority to effect a share consolidation at a ratio between 10:1 and 100:1 within one year, without reducing the authorized number of shares.

A proposal to grant Stock Appreciation Rights to the CEO, CFO, and Executive Chairman was not approved, receiving 1,291,659 votes for and 7,547,118 against.

All information is based on a press release statement filed with the SEC.

In other recent news, Flora Growth Corp. has made a notable investment of $1 million into various cryptocurrencies, marking a strategic pivot towards digital assets. The allocation includes $400,000 each in Ethereum and Solana, both recognized for their technological innovations and potential for widespread adoption. Additionally, Flora Growth has invested $100,000 in Sui, a newer blockchain platform, and another $100,000 in Ripple, known for its digital payment solutions. This move is part of Flora Growth’s broader strategy to integrate next-generation technologies and build a foundation for value creation in the digital economy. CEO Clifford Starke emphasized the company’s commitment to blockchain technology, viewing it as a transformative force in global commerce. Flora Growth intends to keep shareholders updated on further developments, including potential strategic partnerships and additional investments in the cryptocurrency space. The information is derived from a company press release.

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