Flora Growth Corp. (NASDAQ:FLGC) is a diversified international company that was originally built around natural wellness, cannabis-derived products, and consumer brands before embarking on one of the most ambitious transformations in its corporate history. Founded with a mission to connect sustainable cultivation with global distribution, Flora established operations in Colombia and other regions where low-cost cultivation and favorable climates supported its early cannabis and CBD strategy. Over the years, the company built a portfolio that included wellness and lifestyle brands such as JustCBD and Vessel, reaching markets across North America, Europe, and Latin America while positioning itself as a vertically integrated operator with cultivation, processing, and distribution capabilities.
As the cannabis industry matured, the company adapted to shifting consumer demand and regulatory environments by diversifying its offerings. Flora invested in research, medical-grade formulations, and branded products, allowing it to participate in both wellness markets and therapeutic applications. With global cannabis regulations moving at different speeds, the company leveraged its international footprint to capture early opportunities in key jurisdictions. Its Colombian cultivation operations became a cornerstone of its cost advantage, giving Flora the ability to produce high-quality products at scale for both export and domestic markets.
The company also made strategic acquisitions to expand its footprint and enhance its portfolio. JustCBD brought Flora immediate access to the fast-growing U.S. CBD wellness market, while Vessel strengthened its presence in the lifestyle and accessory space. These moves allowed Flora to broaden its revenue streams beyond cultivation, giving it exposure to consumer retail channels and brand-building opportunities. At the same time, the company maintained its long-term vision of positioning itself at the intersection of health, wellness, and innovation.
Despite this foundation in cannabis and wellness, Flora Growth is now redefining itself to capture opportunities in one of the world’s fastest-growing sectors: artificial intelligence. In 2025, the company announced a bold rebrand to ZeroStack, reflecting a complete pivot from its cannabis heritage to a new focus on blockchain-based AI infrastructure. This transformation is supported by a $401 million financing package that combines cash and digital assets, signaling Flora’s intent to become a player in the next generation of decentralized computing. The decision to pursue AI and blockchain marks a fundamental shift in the company’s background story—from a natural wellness pioneer to a technology-driven investment and infrastructure firm.
Flora’s evolution underscores its ability to adapt to changing market conditions and align with global megatrends. Where it once built its reputation on sustainable cultivation and CBD-based wellness products, it is now seeking to create shareholder value by positioning itself at the forefront of AI, digital assets, and blockchain ecosystems. This transformation, combined with its history of navigating complex international markets, highlights Flora’s willingness to reinvent itself and pursue disruptive opportunities that can drive long-term growth.
From Cannabis to AI: A Bold Strategic Transformation
Flora Growth Corp., long known as a cannabis and wellness products company, has stunned the market with its decision to completely pivot away from its legacy operations and rebrand as ZeroStack. While it will retain the same Nasdaq ticker symbol, FLGC, the company’s focus will shift to becoming an AI investment and infrastructure powerhouse. This transition underscores the company’s determination to seize a position in one of the fastest-growing global markets, artificial intelligence, while leaving behind a cannabis industry plagued by regulatory uncertainty, oversupply issues, and margin compression.
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The $401 Million Deal That Signals Serious Intent
Central to this transformation is the recently announced $401 million PIPE deal, which consists of $35 million in cash and $366 million in digital tokens called 0G tokens, valued at $3 each. This structure values the broader Zero Gravity project at $3 billion, giving Flora Growth a sizable stake in the development of decentralized AI infrastructure. The sheer scale of the investment highlights the seriousness of this strategic pivot and positions the company to ride the momentum of blockchain-powered AI solutions. Investors took notice immediately, with Flora Growth stock surging 69% after hours on the announcement.
Backed by Institutional Investors and Strong Partners
This isn’t a retail-driven speculative maneuver. The deal is being led by serious institutional players, including DeFi Development Corp., which invested $22.88 million, as well as Hexstone Capital, Carlsberg SE Asia, and several others. DeFi Development Corp. has deep roots in the Solana ecosystem, which adds credibility to the project and strengthens the collaboration between blockchain infrastructure and AI development. Institutional involvement brings not only capital but also legitimacy, reducing the perception that this is a risky pivot with no industry backing.
Zero Gravity’s Revolutionary AI and Blockchain Synergy
At the heart of Flora Growth’s bullish case is the technology behind Zero Gravity, or 0G, which is focused on building blockchain-based AI infrastructure. The company has already trained a 107-billion-parameter AI model across distributed networks, claiming 357 times efficiency compared to benchmarks from Google. This breakthrough suggests that decentralized systems can rival, and perhaps even surpass, the performance of centralized data centers in AI training. If validated at scale, this achievement could radically disrupt the economics of AI, making powerful models accessible outside of Big Tech’s expensive cloud platforms.
Leadership Aligned with New Growth Vision
Flora Growth’s leadership is being overhauled to reflect its new direction. Michael Heinrich, co-founder of Zero Gravity, is stepping in as Executive Chairman, while Daniel Reis-Faria will become CEO. Their vision emphasizes that AI is transforming not just businesses but also the infrastructure that supports them. With a treasury strategy that blends equity exposure, blockchain tokens, and decentralized AI infrastructure, the leadership team is positioning the company to attract both institutional investors and retail believers in the AI revolution.
Token Launch as a Near-Term Catalyst
The 0G token launch provides an immediate catalyst for value creation. The 0G Foundation will distribute tokens via airdrop to early supporters, with Binance listing 0G on September 22, 2025. This means Flora Growth will hold a large token position before it becomes widely available, positioning the company to benefit significantly if 0G demand surges on open markets. By securing its exposure early, Flora Growth is aligning itself for potential outsized returns on what could become a high-demand digital asset.
Cannabis Business Takes a Back Seat
Flora Growth’s legacy cannabis operations, including brands like JustCBD and Vessel, are no longer the priority. This decision may prove wise, given the industry’s declining revenues and profitability pressures. In 2024, Flora’s revenue fell 21.78% year-over-year to $59.51 million, even though net losses narrowed by 72.11% to $15.91 million. By pivoting to AI and blockchain, Flora is moving away from a struggling sector into one with exponential growth potential.
Risks and Execution Challenges
Of course, this transformation is not without risks. Flora will now be heavily reliant on the success of Zero Gravity and the adoption of the 0G token. Crypto market volatility, regulatory uncertainty around digital assets, and execution risk in scaling decentralized AI infrastructure remain real concerns. Additionally, companies holding digital tokens as treasury assets can suffer from sharp drawdowns when crypto markets weaken, as Standard Chartered has pointed out in recent reports. Flora’s shareholders must therefore have confidence that management can weather volatility and focus on long-term value creation.
Strategic Positioning in a Booming Market
Despite the risks, Flora Growth’s pivot comes at the perfect moment. AI is the most transformative trend in technology, while blockchain is maturing as an institutional-grade infrastructure. By becoming one of the first public companies to stake its future entirely on blockchain-based AI development, Flora Growth is creating a unique investment vehicle for shareholders who want exposure to these megatrends without relying solely on traditional tech giants. This asymmetric bet offers massive upside potential if Zero Gravity delivers on its promises of scalable, transparent, and cost-efficient AI infrastructure.
Conclusion: A High-Risk, High-Reward Bet with Explosive Potential
Flora Growth’s decision to rebrand as ZeroStack and invest $401 million into the Zero Gravity AI project represents one of the boldest pivots in the public markets. The combination of institutional backing, groundbreaking AI technology, leadership aligned with the new mission, and a near-term catalyst with the 0G token launch make this a highly compelling, if speculative, investment case. For investors seeking exposure to the convergence of AI and blockchain, Flora Growth now offers a differentiated, high-upside opportunity that could generate transformative returns if execution aligns with vision.
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