TLDR
- Flora Growth rebrands to ZeroStack with $366M crypto-backed raise
- FLGC soars 69% after $366M PIPE into 0G blockchain AI ecosystem
- Flora pivots to ZeroStack, fueling stock rally with crypto financing
- ZeroStack emerges as FLGC secures $366M for decentralized AI strategy
- Flora Growth rebrands, embraces 0G blockchain with hybrid capital raise
Flora Growth Corp. (NASDAQ: FLGC) closed at $27.20 with a 5.55% rise and surged 69.12% in after-hours trading.
Flora Growth Corp. (NASDAQ: FLGC)
The sharp jump followed the announcement of a transformative $366 million crypto-backed private placement. The company also revealed plans to rebrand as ZeroStack and adopt a blockchain-first treasury strategy.
0G Blockchain Drives Strategic Shift
Flora Growth Corp. priced a private investment in public equity (PIPE) to support its entry into the 0G blockchain ecosystem. The 0G blockchain offers a scalable AI-first infrastructure and will underpin the company’s new digital treasury model. As part of this pivot, the firm will acquire additional $0G tokens to expand its presence in decentralized AI.
The offering brings together several crypto and Web3-focused capital partners including DeFi Dev Corp., Hexstone Capital, and Carlsberg SE Asia. Other notable participants include Dao5, Abstract Ventures, and Blockchain Builders Fund, reinforcing broad institutional support. These backers contributed both cash and in-kind digital assets to support the capital raise.
The transaction includes common shares priced at $25.19 and values each $0G token contribution at $3.00, integrating token-based funding. Confident investors will receive pre-funded warrants, pending shareholder approval, to align interests and accelerate onboarding. The company will also hold a portion of its treasury in SOL tokens to foster collaboration with Solana-based protocols.
$0G Token Unlocks New AI Infrastructure Model
0G recently demonstrated a breakthrough by training a 107 billion parameter model over decentralized networks using low-bandwidth connections. This achievement marks a 357x improvement over previous research, enabling cost-efficient and privacy-centric model training. The company believes decentralized networks now match or exceed centralized data centers in training performance.
With its own compute, storage, and training layers, 0G offers a vertically integrated platform for developers. It enables both Web2 and Web3 builders to access advanced AI capabilities without managing backend complexity. The integration with Flora’s operations aims to capitalize on this momentum and extend 0G’s infrastructure reach.
The company’s operating system supports seamless adoption and aims to eliminate the technical barriers to deploying decentralized AI solutions. This infrastructure is designed to offer cost savings, speed, and transparency for AI development. Flora’s rebranding to ZeroStack reflects its alignment with this AI-first vision.
Equity Offering and Strategic Vision Fuel Stock Rally
The $366 million capital raise combines $35 million in cash and a significant pool of digital assets. This hybrid fundraising model highlights a shift toward crypto-backed corporate finance strategies. By blending equity and tokenized assets, the firm diversifies its capital base.
The PIPE transaction is expected to close on or around September 26, 2025, pending customary conditions. The new treasury approach will fund expansion into 0G and provide long-term support for product and infrastructure growth. Shareholders will vote on related approvals as part of the finalization process.
The stock’s sharp increase reflects strong market reaction to the new strategy and financial structure. Investors appear to view the integration of blockchain and AI as a high-growth opportunity. With its rebranding and treasury overhaul, Flora positions itself as a new kind of infrastructure company built for a decentralized future.
