Why Shares of Flora Growth Are Soaring Today
Flora Growth (NASDAQ: FLGC) surged as high as $7.95 in afternoon trading Wednesday, a rise of more than 50% to the highest level the stock has touched since its initial public offering in May.
Colombia-based Flora, which just announced plans to move its corporate headquarters to Miami from Canada, cultivates cannabis and processes it into medicinal-grade cannabis oil and other products, which it supplies to pharmacies, cosmetics companies, and medical clinics.
Its shares were driven upward by the company's announcement Tuesday that it had signed a letter of intent with Avaria for a joint venture regarding Avaria's CBD pain-relieving cream, KaLaya. The cream, already sold in Canada, will now also be sold through Flora's distribution channels in Latin America. The profits from the sale of KaLaya products will be split, boosting the value of Flora's distribution channels, Flora said. In addition, Flora's cultivated cannabis will be used in KaLaya's products.
Source Fool.com
