Flora Growth shares surge 22.71% after-hours after withdrawing proposed public share offering, signaling reduced dilution risk.

Flora Growth surged 22.71% in after-hours trading following its announcement to withdraw the proposed public offering of common shares. The company cited regulatory compliance as the reason, stating the offering would not proceed due to potential legal issues in jurisdictions lacking proper registration. This move likely alleviated investor concerns over share dilution, a common bearish factor in such transactions. The rebranding to ZeroStack, emphasizing decentralized AI and pharma distribution, also reinforced strategic clarity, though the immediate catalyst was the withdrawal. The stock’s sharp rebound aligns with its recent volatility, as earlier reports highlighted a 62% weekly gain amid broader 53.6% six-month losses. By halting the offering, Flora Growth may have signaled confidence in its current capital structure and upcoming AI-focused initiatives, driving post-market optimism.