Flora Growth Corp. (FLGC): History, Ownership, Mission, How It Works & Makes Money

When a company with a market capitalization of just $5.81 million (as of November 2025) announces a $401 million funding initiative for an AI Zero Gravity ($0G) Coin Treasury, doesn't that force you to look closer at the business model? Flora Growth Corp. (FLGC) is no longer just a cannabis play; it's a firm undergoing a radical strategic transformation, shifting its focus to a decentralized AI treasury and international pharmaceutical distribution after selling its cannabis business. You need to understand this pivot-from reporting a $6.7 million net loss in Q3 2025 to strategically investing in AI infrastructure-to map out the near-term volatility and opportunity.

Flora Growth Corp. (FLGC) History

You need a clear line of sight on where a company like Flora Growth Corp. (FLGC) started and how it evolved, especially with its recent pivot into the AI/crypto space. The short takeaway is that FLGC began as a vertically integrated cannabis and consumer packaged goods (CPG) play in Canada and Colombia, but its trajectory in 2025 has been completely reshaped by a massive strategic shift toward a decentralized AI network treasury.

Given Company's Founding Timeline

Flora Growth Corp. was incorporated in early 2019, betting on low-cost, high-quality cannabis cultivation in a favorable regulatory environment. This dual-location model-corporate in North America, operations in South America-was the original blueprint.

Year established

2019 (Incorporated on March 13, 2019).

Original location

The company was originally headquartered in Toronto, Ontario, Canada, with its primary cultivation and operational hub established in Bogotá, Colombia. This split location gave them access to capital markets and ideal growing conditions.

Founding team members

While the initial incorporation details are complex, the company's leadership quickly coalesced around key figures like Luis Merchan, who now serves as the Chairman and CEO, driving the strategic vision from his prior experience at Macy's Inc.

Initial capital/funding

Specific seed capital figures are not public, but the company's early growth was fueled by capital market access. A significant financing round in November 2021 brought in $31.5 million in gross proceeds, which provided the necessary runway for its initial CPG acquisitions and expansion.

Given Company's Evolution Milestones

The company's history is a story of rapid acquisitions and, more recently, a sharp strategic turn to address financial turbulence and Nasdaq compliance issues. This table maps the key decisions that shaped its current form as of November 2025.

Given Company's Transformative Moments

The most important thing to grasp is that Flora Growth Corp. is no longer just a cannabis company. The last few months of 2025 have been a complete re-architecture of the business model, a high-risk, high-reward move to survive and find a new growth vector.

The company's trailing twelve months (LTM) revenue ending September 30, 2025, was $57.61 million, but net losses were still significant at -$16.0 million. Honestly, the core CPG business was struggling to achieve sustainable profitability, evidenced by the Q1 2025 net loss of $0.8 million and the Q2 2025 net loss of $2.4 million, even with aggressive cost-cutting. That's a tough spot to be in.

The shift to an AI/crypto treasury is the single biggest transformative decision in the company's history. It's a radical pivot away from the traditional cannabis sector's regulatory and capital constraints. Here's the quick math on the change:

• Massive Capital Infusion: The September 2025 announcement of a $401 million funding commitment, beginning with the $22.88 million strategic investment, dwarfs all previous capital raises.
• New Asset Class: The company is now actively acquiring Zero Gravity ($0G) tokens, holding 123,418,360 $0G as of late October 2025, valued at approximately $231 million. This makes the digital asset treasury a larger, more volatile asset than the entire cannabis operation.
• Rebranding and Focus: The company is defintely signaling a rebrand to ZeroStack, positioning itself as an AI-focused entity. This is an existential shift, not just a new product line.

This move is a clear attempt to maximize returns through an analytical, data-driven approach by leveraging the high-growth, high-multiple AI/blockchain sector. It's a bold gamble to unlock value that the cannabis market wasn't providing. You can see how the company's mission has evolved by reviewing the Mission Statement, Vision, & Core Values of Flora Growth Corp. (FLGC).

Flora Growth Corp. (FLGC) Ownership Structure

Flora Growth Corp. (FLGC) is a publicly traded company, but its ownership structure is heavily weighted toward individual insiders and the general public, a common trait in smaller-cap growth stocks undergoing a strategic shift.

The company is currently listed on the NASDAQ Capital Market (NASDAQ-CM) under the ticker FLGC. A major strategic pivot in 2025, including a $401 million funding round, means the company is set to rebrand as ZeroStack, shifting its focus from a medicinal cannabis distributor to a digital asset treasury company that is heavily involved in AI and blockchain.

Given Company's Current Status

Flora Growth Corp. is an emerging growth company and a smaller reporting company, currently trading on the NASDAQ-CM. This public status is critical, as it mandates quarterly and annual financial transparency, including the Q3 2025 revenue of $9.75 million and a trailing twelve-month earnings loss of -$16.0 million ending September 30, 2025.

The recent corporate transformation, which included a 1-for-39 share consolidation, is a clear signal of management's intent to stabilize the stock and pursue higher-growth, albeit higher-risk, ventures in the decentralized finance (DeFi) space. You can dig deeper into the shareholder landscape and market sentiment by Exploring Flora Growth Corp. (FLGC) Investor Profile: Who's Buying and Why?

Given Company's Ownership Breakdown

The shareholder composition as of late 2025 reflects a high level of retail and insider control, which can lead to higher stock volatility but also greater alignment between management and shareholders.

Honesty, when you see the General Public holding over 78% of the shares, you know the stock price is mostly driven by retail sentiment, not just institutional models. The 16.5% insider ownership, however, means the leadership team has a strong financial stake in the new strategic direction.

Given Company's Leadership

The leadership team has seen a significant overhaul in late 2025 to steer the company toward its new focus on digital assets and AI, a move that requires a different skill set than its original cannabis and consumer packaged goods business.

• Michael Heinrich, Executive Chairman: A Forbes 40 under 40 entrepreneur who previously started two unicorn companies, he now runs 0G Labs (0g.ai) and is driving the AI-first blockchain strategy.
• Daniel Reis-Faria, Chief Executive Officer (CEO): A global technology entrepreneur and investor with over fifteen years of experience in AI, blockchain, and cyber-security, he is now focused on driving innovation at the intersection of public markets and decentralized finance.
• Dany Vaiman, Chief Financial Officer (CFO): With nearly two decades of finance experience, Mr. Vaiman has been defintely central to the company's transformation into a digital asset treasury company, including the landmark $400 million transaction centered around the $0G coin.

This is a completely new management thesis. The new executives bring deep experience in the AI and blockchain space, which is a necessary shift to execute the pivot away from the traditional cannabis market. This is a high-risk, high-reward bet on the future of decentralized AI infrastructure.

Flora Growth Corp. (FLGC) Mission and Values

Flora Growth Corp. is rapidly redefining its core purpose, shifting from a cannabis-focused consumer-packaged goods company to a NASDAQ-listed pharmaceutical distributor and a cutting-edge digital assets treasury firm. This pivot is grounded in core values of Innovation, Quality, and Integrity, driving its new strategic direction.

Honestly, this is a massive change. The company is defintely not the same entity it was even a year ago, so you need to understand the new DNA.

Flora Growth Corp.'s Core Purpose

The company's cultural DNA has evolved, now blending the high standards of pharmaceutical distribution with the forward-looking, decentralized nature of digital assets and AI infrastructure. This dual focus shows a clear intent to move where the capital markets are heading, not where they've been.

Official mission statement

The mission has been formally updated to reflect the company's strategic pivot and its new financial structure, especially following the significant 2025 funding event.

• Create the leading NASDAQ pharmaceutical distributor and digital assets treasury company.
• Retain the pharmaceutical distribution business, Phatebo GmbH, while focusing on the new AI treasury strategy.
• Operate with core values: Innovation, Quality, and Integrity.

For a deeper dive into the numbers supporting this shift, you should check out Breaking Down Flora Growth Corp. (FLGC) Financial Health: Key Insights for Investors.

Vision statement

The long-term vision maps directly to the new mission, aiming for global leadership in two distinct, yet high-growth, sectors-pharmaceuticals and decentralized AI.

• Set a global standard for consumer products and pharmaceuticals.
• Become the first and largest decentralized AI treasury company, with the expected rebrand to ZeroStack.
• Enable transparent, verifiable, and cost-efficient large-scale AI development through foundational infrastructure.

Here's the quick math: The September 2025 private investment in public equity (PIPE) offering secured over $366 million in in-kind digital assets and $35 million in cash and equivalent commitments, totaling over $401 million to fuel this vision. That's a serious capital commitment to the AI future.

Flora Growth Corp. slogan/tagline

While the company has undergone a significant rebranding and strategic shift in 2024 and 2025, an independently verifiable official slogan or tagline for Flora Growth Corp. is not readily available in public sources.

• No official, publicly verified slogan or tagline is currently in use.
• The focus is on the new identity as an AI infrastructure and pharmaceutical distributor.

Flora Growth Corp. (FLGC) How It Works

Flora Growth Corp., which is in the process of rebranding to ZeroStack, is fundamentally transforming from a multi-national cannabis company into a decentralized AI treasury company that maintains a secondary business in global pharmaceutical distribution. The core business model now centers on providing public-market investors with equity-based exposure to the foundational infrastructure of decentralized Artificial Intelligence (AI) through strategic ownership of the $0G token, while its Phatebo subsidiary generates revenue from essential pharmaceutical sales.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

The company's operations are now split between managing a high-growth, high-risk digital asset portfolio and running a stable, regulated distribution business. It's a dual-engine model, defintely a unique setup.

• Digital Asset Treasury Management: The primary process involves deploying capital from the $401 million funding round-which included $366 million in digital assets and $35 million in cash commitments-to acquire and hold $0G tokens. The company's strategy is to hold these tokens long-term and stake them within the 0G ecosystem to generate a passive, native yield, effectively turning the treasury into a yield-generating reserve.
• Pharmaceutical Distribution: The subsidiary, Phatebo GmbH, operates as a licensed pharmaceutical wholesaler, primarily in Germany. This involves sourcing brand-name and generic prescription medicines and distributing them directly to pharmacies and other healthcare providers. This segment generated $9.75 million in revenue in the third quarter of 2025.
• Value Creation: The value is created through two distinct paths: the potential appreciation of the $0G token holdings and the yield generated from staking, plus the gross profit from Phatebo's distribution margins. For perspective, the company's Q3 2025 net loss was $6.7 million, highlighting the need for the new strategy to generate substantial returns.

Given Company's Strategic Advantages

The biggest advantage is the speed and scale of the pivot, transforming the company into a first-to-market public entity with a dedicated Digital Asset Treasury (DAT) focused on AI infrastructure.

• Publicly-Traded AI/Crypto Exposure: Flora Growth is one of the first NASDAQ-listed companies to adopt a treasury strategy where the primary reserve asset is a nascent, AI-first blockchain token ($0G), offering a rare, if speculative, vehicle for investors to gain exposure to decentralized AI infrastructure through a regulated exchange.
• Massive Digital Asset Base: The company holds a significant block of $0G tokens, valued at approximately $231 million as of late October 2025, giving it a substantial stake in the future of the 0G network.
• Cash-Flow Hedge: The continued operation of Phatebo GmbH provides a stable, though low-margin, revenue stream from a highly regulated industry (pharmaceutical distribution) to help offset the volatility and operational costs associated with the high-risk, high-reward AI treasury strategy.

Here's the quick math: The per-share exposure to the $0G treasury is roughly 12.42 tokens per share, which is the core valuation driver now, not the old cannabis business. For a deeper dive into the financial implications of this pivot, you should read Breaking Down Flora Growth Corp. (FLGC) Financial Health: Key Insights for Investors.

Flora Growth Corp. (FLGC) How It Makes Money

Flora Growth Corp. has undergone a radical transformation, shifting from a cannabis-focused consumer packaged goods company to a decentralized AI treasury company (rebranding to ZeroStack) that retains a core operational business in pharmaceutical distribution. The company now primarily generates revenue through two distinct channels: sales from its global pharmaceutical distribution subsidiary and potential gains/losses from its significant treasury holdings in digital assets like $0G Tokens.

Flora Growth Corp.'s Revenue Breakdown

The company's revenue profile as of late 2025 is in flux due to the sale of its legacy cannabis business in September 2025. The table below reflects the new strategic focus, where the Digital Asset Treasury is positioned to be the primary driver of value and non-operational revenue, while the pharmaceutical segment provides the sole operational sales.

Business Economics

The economics of Flora Growth Corp. have fundamentally changed from a low-margin, high-regulatory-risk cannabis model to a high-risk, high-potential-return digital asset treasury model, supplemented by a steady, if declining, distribution business. The old business was about selling physical products; the new one is about capital appreciation and investment gains.

• Digital Asset Treasury: The company's new core strategy is holding $0G cryptocurrency as its primary reserve asset, which is a foundational token for the 0G decentralized AI network. The revenue here is realized or unrealized gains on the value of these tokens, making the business highly sensitive to the volatile crypto and AI markets.
• International Pharmaceutical Distribution: This remaining operational segment, primarily through its German subsidiary Phatebo GmbH, focuses on distributing brand-name pharmaceuticals. This business operates on a traditional distribution margin, which is typically thin, but offers a steady, established revenue base. For the six months ended June 30, 2025, Phatebo sales were $16.6 million, though they decreased 21% year-over-year.
• Pricing Strategy: The new model's value is tied to the price of $0G, which was valued at $3.00 per token in the initial private investment in public equity (PIPE) transaction. The company's financial health now hinges on the appreciation of this asset.

Honestly, this shift means you're no longer investing in a cannabis company; you're betting on an AI-crypto fund with a pharma side hustle.

Flora Growth Corp.'s Financial Performance

The financial results for 2025 show a company in deep transition, with the balance sheet dramatically altered by the new treasury strategy. The reported revenue for the first nine months still reflects the legacy business, but the balance sheet shows the future focus.

• Total Revenue (Trailing 12 Months): As of September 30, 2025, the trailing twelve months revenue was $49.66 million. The third quarter (Q3 2025) revenue was $9.7 million.
• Net Loss: The company continues to operate at a loss, reporting a net loss of $6.7 million in Q3 2025. This reflects ongoing operational challenges and costs associated with the massive strategic overhaul.
• Digital Asset Holdings: Total assets surged to $74.0 million at the end of Q3 2025, up from $26.2 million at the end of 2024, primarily due to the receipt of $55.3 million in 0G Tokens. Here's the quick math: that token holding represents nearly 75% of the company's total assets.
• Liquidity: Cash and restricted cash improved to $13.1 million at September 30, 2025, a critical boost from the $5.2 million at the end of 2024, thanks to $69.3 million raised year-to-date via equity offerings.

What this estimate hides is the extreme volatility of the digital asset treasury, which will introduce massive swings in future reported earnings from non-operating gains or losses. For a deeper dive into the company's long-term vision, you should check out the Mission Statement, Vision, & Core Values of Flora Growth Corp. (FLGC). Finance: track the fair value changes of the 0G Tokens quarterly, as that's the new core business.

Flora Growth Corp. (FLGC) Market Position & Future Outlook

Flora Growth Corp. (FLGC) is undergoing a radical, high-stakes pivot, transforming from a multi-national cannabis company into a decentralized Artificial Intelligence (AI) treasury company, expected to rebrand as ZeroStack. This strategic shift positions the company as a highly speculative, first-mover play in the intersection of public equity and the decentralized AI infrastructure market, moving its primary value driver from consumer packaged goods to digital asset holdings.

Competitive Landscape

You can't compare the new Flora Growth Corp. to cannabis growers anymore. The company now operates in two distinct, massive markets: the volatile Digital Asset Treasury (DAT) space and the established Global Pharmaceutical Wholesale Distribution market. Their competitive position is defined by this split strategy.

Here's the quick math: the global pharma distribution market is projected to hit around $1.5 trillion in 2025. Flora Growth Corp.'s market cap is tiny, so even a 0.01% market share proxy illustrates the ground they need to cover against giants like McKesson. In the DAT space, they compete on asset choice-Bitcoin for MicroStrategy versus the new, unproven $0G token for Flora Growth Corp.

Opportunities & Challenges

This pivot is a textbook high-risk, high-reward situation. You're betting on the appreciation of a single, new digital asset and the success of a complete business model overhaul.

Industry Position

Flora Growth Corp.'s industry standing is defintely bifurcated as of November 2025.

• Digital Asset Treasury: The company is positioned as a radical outlier. It's the first to anchor its treasury strategy on a decentralized AI-focused altcoin, the $0G token, rather than Bitcoin (BTC) or Ethereum (ETH). This is a pure speculation play on a niche technology.
• Pharmaceutical Distribution: Through its subsidiary, the company maintains a toehold in the global pharmaceutical distribution market. This segment, with Q3 2025 revenue of $9.7 million, provides a small, tangible revenue stream but lacks the scale to compete with industry behemoths.
• Overall Trajectory: The company is shedding its identity in the cannabis/wellness space to become a 'decentralized AI treasury company.' This move is a complete reset, making its former peer group irrelevant. The new management team, led by incoming CEO Daniel Reis-Faria, is betting the entire future on the success of the 0G ecosystem. You can learn more about their long-term vision in their Mission Statement, Vision, & Core Values of Flora Growth Corp. (FLGC).

The stock's performance will be highly correlated with the price movements of the $0G token and the market's appetite for decentralized AI infrastructure, much like MicroStrategy's stock tracks Bitcoin.