Flora Growth shares fall 31.18% after-hours after announcing public offering of common shares.

Flora Growth (NASDAQ: FLGC) fell 31.18% in after-hours trading following the announcement of an underwritten public offering of its common shares. The company, rebranding as ZeroStack Corp., disclosed the offering under a shelf registration, with R.F. Lafferty & Co. as the sole book-running manager. While the rebranding reflects a strategic pivot to AI-focused asset management, the public offering raised concerns about capital dilution and the company’s cash-burning operations. Despite holding more cash than debt, Flora Growth’s rapid depletion of reserves and the uncertainty surrounding the offering’s terms likely triggered investor skepticism. The market’s sharp reaction suggests the offering was perceived as a negative signal, overshadowing the rebranding’s potential to realign the company’s identity with emerging tech sectors.