Flora Growth Corp. (FLGC) jumped nearly 6% in after-hours trading Thursday, closing at $10.55 after a regular session that saw the stock finish at $9.96, up 3.59%.

The catalyst? The Florida-based pharmaceutical distributor and digital assets company filed a Form 1-A with the SEC, signaling its intention to raise some serious capital.

The Fundraising Plan

Flora Growth is pursuing a Regulation A offering, which allows companies to sell securities without going through the full registration process typically required for public offerings. The company wants to sell up to 30 million common shares at $2.50 per share, which would bring in as much as $75 million if fully subscribed.

Here's where things get interesting with the math: the company currently has 13.36 million shares outstanding and a market cap of just $7.43 million. So they're essentially looking to more than double their outstanding share count to raise capital worth roughly ten times their current market value.

Aegis Capital Corp. is handling the offering and stands to collect $5.25 million in sales commissions. Legal fees will run another $250,000, with Dorsey & Whitney LLP and Kaufman & Canoles LLP providing counsel.

The Financial Picture

The SEC filing offers a window into Flora Growth's finances, and it's a mixed bag. The company reported total revenues of $18.03 million against costs and expenses of $14.17 million. That sounds promising until you factor in the net loss of $3.4 million, translating to negative $0.38 per share.

Cash and cash equivalents stand at $4.15 million. Total assets come to $24.27 million, while total liabilities hit $21.13 million, leaving stockholders' equity at $3.13 million. It's a tight balance sheet, which probably explains the urgency behind this capital raise.

Trading Context

The stock's performance tells a challenging story. Flora Growth is down 85.25% over the past year, with an annual trading range stretching from $6.80 to $81.90. That high-water mark of $81.90 feels like ancient history given where shares trade today.

With a market cap of just $7.43 million, Flora Growth is firmly in micro-cap territory. The stock shows negative price trends across all timeframes, according to market data, suggesting investors have been heading for the exits for quite some time.

Thursday's after-hours pop suggests some investors see potential in the capital raise, or at least relief that the company is securing a financial runway. Whether that optimism holds when the dilution hits remains to be seen.