Flora Growth's $401M AI Blockchain Venture: Rebranding to ZeroStack and Embracing 0G Technology

Cannabis firm Flora Growth launches $401M treasury backing Zero Gravity

Nasdaq-listed Flora Growth will rebrand to ZeroStack after raising $401 million to support 0G, a decentralized AI blockchain training 107B-parameter models. Nasdaq-listed cannabis firm Flora Growth has launched a $401 million treasury initiative to back Zero Gravity (0G), a blockchain project focused on powering decentralized AI infrastructure. The move comes through a private placement deal combining $35 million in cash with $366 million in in-kind digital assets, primarily denominated in 0G tokens. As part of the transaction, Flora will rebrand as ZeroStack while retaining its Nasdaq ticker, FLGC, according to a Friday announcement. Solana (SOL) treasury company DeFi Development Corp. (DFDV) led the deal, alongside Hexstone Capital and Carlsberg SE Asia PTE Ltd, with participation from firms including Dao5, Abstract Ventures and Dispersion Capital. "We're thrilled to partner with FLGC on this fundraise and look forward to driving a deep collaboration between 0g and Solana," said DFDV CEO Joseph Onorati. Flora will also hold a portion of its treasury in SOL tokens. Related: Crypto treasuries with long-term strategy will 'survive any market': Hashkey The investment aims to scale 0G's AI infrastructure, which can already train a 107 billion parameter model using distributed clusters, a feat that surpasses previous benchmarks from tech giants like Google. 0G claims a 357x efficiency improvement over existing distributed AI frameworks. Incoming CEO Daniel Reis-Faria described the treasury move as a way for institutional investors to gain equity-based exposure to a "transparent, verifiable, and privacy-first AI infrastructure." Closing is expected by September 26, pending shareholder approval. Certain investors will receive pre-funded warrants tied to the use of 0G tokens in the offering. Related: Bitcoin as corporate treasury: Why Meta, Amazon and Microsoft all said no Digital asset treasury (DAT) firms are facing mounting pressure as market net asset values (mNAVs) across the sector have sharply declined, Standard Chartered said Monday. Once boosted by the success of Strategy's Bitcoin accumulation model, the DAT boom has stalled, exposing smaller players to growing risks as their valuations sink. An mNAV above 1 typically enables firms to issue new shares and expand crypto holdings. However, with many DATs now trading below that threshold, access to low-cost capital has dried up, stalling further accumulation and growth. The bank expects sector-wide consolidation, with larger, better-funded players like Strategy and Bitmine emerging as likely winners. Smaller firms struggling with suppressed mNAVs may become acquisition targets. Magazine: Meet the Ethereum and Polkadot co-founder who wasn't in Time Magazine

Why Is Flora Growth Stock Skyrocketing Monday? - Flora Growth (NASDAQ:FLGC), DeFi Development (NASDAQ:DFDV)

DeFi Development Corp. DFDV, the first public company to center its treasury on accumulating Solana SOL/USD, has partnered with ZeroStack, the soon-to-be new name of Flora Growth Corp. FLGC. The collaboration focuses on building out the 0G Network, a decentralized blockchain designed to scale artificial intelligence workloads. Under the deal, DFDV contributed SOL tokens in exchange for a convertible note and an equity position in ZeroStack. The company also agreed to provide support services such as asset management and technology solutions. ZeroStack will hold the SOL as part of its own balance sheet. The arrangement combines capital investment with operational involvement in digital asset treasuries. The partnership links Solana's ecosystem with 0G's decentralized AI platform, enabling new AI-driven applications across both networks. The convertible note issued to DFDV pays 8% annually in SOL, reinforcing the partnership's direct tie to Solana. Also Read: Solana Outgains Bitcoin, Ethereum After DeFi Development Bags $77 Million In SOL For Corporate Reserves Flora Growth is preparing to rebrand as ZeroStack after announcing a private placement to raise digital assets and cash. Investors include Hexstone Capital, Carlsberg SE Asia PTE Ltd., Dao5, Abstract Ventures and others. Proceeds will go toward expanding holdings of the 0G token, which powers the 0G infrastructure. Leadership changes accompany the rebrand, with Michael Heinrich named executive chairman and Daniel Reis-Faria stepping in as CEO. 0G has shown it can train a 107 billion-parameter model using distributed clusters over standard internet connections, marking a leap beyond benchmarks set by Alphabet Inc.'s GOOGL GOOG Google DiLoCo project. The network integrates storage, compute and training capabilities to decentralize AI development and reduce dependence on centralized data centers. DFDV will host an X Spaces discussion on Sept. 23, 2025, to update investors on Treasury Accelerator initiatives, including the ZeroStack collaboration and other ventures aimed at driving Solana per share growth. Price Action: FLGC shares were trading higher by 135.85% to $64.15, and DFDV shares were trading lower by 5.38% to $16.02 premarket at last check Monday. Read Next: Bitcoin Crashes To $112,000 As ETH, XRP, Dogecoin Get Hit By Over $1 Billion In Long Liquidations Image via Shutterstock DFDVDeFi Development Corp$16.10-4.90%OverviewFLGCFlora Growth Corp$55.00102.2%$SOLSolana - United States dollar$221.58-6.23%GOOGAlphabet Inc$253.62-0.63%GOOGLAlphabet Inc$253.28-0.57%Market News and Data brought to you by Benzinga APIs

Flora Growth secures $401 million funding, plans rebrand to ZeroStack By Investing.com

Flora Growth Corp. (FLGC) announced a $401 million funding round through a private investment in public equity offering, with $22.88 million coming from strategic investor Defi Development Corp. The company plans to rebrand as ZeroStack following the transaction's completion. The offering includes $366 million in digital assets and $35 million in cash commitments. Investors are purchasing common shares at $25.19 per share, with $0G tokens valued at $3.00 each. The $0G cryptocurrency, native to the 0G distributed AI infrastructure project, will serve as the company's primary reserve asset. DeFi Dev Corp. leads the funding round alongside Hexstone Capital and Carlsberg SE Asia PTE Ltd. Additional participants include Dao5, Abstract ventures, Dispersion Capital, Blockchain Builders Fund, and Salt. The transaction is expected to close around September 26, 2025, subject to customary conditions. Flora Growth intends to use proceeds to acquire additional $0G tokens. As part of the restructuring, Flora Growth will appoint Michael Heinrich, co-founder of 0G, as Executive Chairman and Daniel Reis-Faria as CEO. The company will retain its FLGC ticker symbol after rebranding. "We're thrilled to partner with FLGC on this fundraise and look forward to driving a deep collaboration between 0g and Solana," said Joseph Onorati, CEO of Defi Development Corp. Flora Growth currently operates as a global pharmaceutical distributor through its subsidiary Phatebo GmbH. The company describes the treasury strategy as offering institutional investors equity-based exposure to AI infrastructure development. The private placement is being conducted under Regulation D exemption and is available only to accredited investors, according to the company's statement.

Flora Growth Corp. (FLGC) Announces $401 Million Funding with a $22.88 Million Strategic Investment from Defi Development Corp. (DFDV) to Initiate Groundbreaking AI Zero Gravity ($0G) Coin Treasury Strategy

Fort Lauderdale, Florida--(Newsfile Corp. - September 19, 2025) - Flora Growth Corp. (NASDAQ: FLGC) ("Flora" or the "Company") today announced the pricing of a private investment in public equity offering, positioning the Company to implement a 0G treasury strategy. 0G is the largest AI-first blockchain that is infinitely scalable and designed to power the future of distributed AI. Upon close of the transaction, the company expects to rebrand as ZeroStack and retain the "FLGC" ticker symbol. The offering is led by DeFi Dev Corp., the first DAT designed to accumulate and compound Solana (SOL), Hexstone Capital, and Carlsberg SE Asia PTE Ltd (CSAPL) as well as participation by many others such as Dao5, Abstract ventures, Dispersion Capital, Blockchain Builders Fund, and Salt. With over $366 million secured in in-kind digital assets and $35 million in cash and equivalent commitments, the Company has entered into a private placement transaction ("PIPE transaction") for the purchase and sale of the Company's common shares (including pre-funded warrants) at a purchase price of $25.19 per share and a value of $3.00 per each $0G token contributed in-kind and certain in-kind loans. Certain cash investors and investors who choose to fund their purchases with $0G tokens will receive pre-funded warrants exercisable once the company receives shareholder approval. "We're thrilled to partner with FLGC on this fundraise and look forward to driving a deep collaboration between 0g and Solana. DFDV is excited to support AI adoption across Solana," said Joseph Onorati, CEO of Defi Development Corp. In addition, the Company will be holding a small portion of its treasury holdings in SOL tokens as part of the collaboration. Following the closing of the PIPE Transaction, which is expected to occur on or around September 26, 2025, subject to customary closing conditions, the Company intends to use the proceeds of the PIPE Transaction to acquire additional $0G, the native cryptocurrency of the 0G ecosystem. 0G has achieved what many considered impossible in decentralized AI, successfully training a 107 billion parameter model using distributed clusters over low-throughput internet connections. This represents a 357x improvement over existing research from Google (DiLoCo) and demonstrates that large-scale AI models can be trained effectively without centralized infrastructure and that distributed networks can handle the computational complexity previously thought to require massive, centralized data centers. 0G is the first-ever Web3 AI company to vertically integrate its own proprietary storage network, compute network, and training marketplace to fully decentralize AI workloads. This infrastructure is bundled into an all-in-one operating system, offering highly performant AI tools for seamless integration by Web2 and Web3 builders. "AI isn't just transforming what companies do, it's transforming how they must build infrastructure. This treasury strategy offers institutional investors equity-based exposure to the foundational infrastructure enabling transparent, verifiable, large-scale, cost-efficient, and privacy-first AI development," said Daniel Reis-Faria, incoming Flora Growth CEO. About the Company Flora, which will be rebranded as ZeroStack, is the first and largest decentralized AI treasury company that is investing in the future of AI infrastructure through strategic ownership in 0G, an AI infrastructure company that has created an open and decentralized AI network fueled by the $0G token. The Company is a global pharmaceutical distributor through its wholly owned subsidiary Phatebo GmbH. This release contains statements that may be considered forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this release are forward-looking statements. These forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," or other similar expressions, although not all forward-looking statements contain these identifying words. These forward-looking statements include, but are not limited to, express or implied statements regarding: the Company's business plans; expectations for $0G and the Company's treasury strategy; the Company's rebrand to ZeroStack; the satisfaction of customary closing conditions related to the offering and to complete the offering; the Company's ability to obtain subsequent shareholder approval; and expectations for future capital markets transactions. Forward-looking statements are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, anticipated events and trends, the economy and other future conditions. Actual results may differ materially from those indicated in the forward-looking statements because the realization of those results is subject to many uncertainties, including economic conditions, fluctuations in the market price of $0G, the impact on our business of the regulatory environment and other risks and uncertainties described in the "Risk Factors" section of Part I, Item 1A of the Company's most recent Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. Forward-looking statements contained in this press release are made as of the date of this press release, and we undertake no duty to update such information except as required under applicable law. This release does not constitute an offer to sell or a solicitation of an offer to buy any securities. The private placement described herein is being made pursuant to an exemption from registration under Regulation D of the Securities Act of 1933, as amended, and is available only to accredited investors as defined under Rule 501(a) of Regulation D. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/267268