Flora Growth, traded on Nasdaq under the ticker FLGC, has announced a financing package worth 401 million dollars that is set to reshape its balance sheet and corporate identity. The move will also make the firm the first publicly listed company to add Zero Gravity’s 0G token to its holdings. Following the transaction, the company intends to rebrand as ZeroStack before the end of the month.
Investor sentiment shifted swiftly in response to the announcement. Flora’s stock price, which had declined by 32 percent earlier this year, surged nearly 70 percent in after-hours trading once details of the agreement became public.
A Unique Financing Structure
What distinguishes this arrangement is its unconventional structure. Out of the total 401 million dollars, only 35 million is in cash, with the remainder composed of digital assets, primarily 0G tokens valued at three dollars apiece. Should those valuations remain stable, Zero Gravity’s blockchain would debut with a fully diluted value of roughly three billion dollars. This would place the project alongside other notable blockchain initiatives such as Pudgy Penguins and World Liberty Financial, the latter backed by former US President Donald Trump.
The funding round is backed by a mix of high-profile investors. DeFi Development Corp., a treasury group focused on Solana, is leading the placement along with Hexstone Capital and Carlsberg SE Asia. Additional participation is coming from Dao5, Dispersion Capital, Abstract Ventures, Salt, and Blockchain Builders Fund. DeFi Development emphasized that it had not liquidated any of its 480 million dollars in Solana holdings to finance the transaction, but rather added exposure to 0G alongside its existing Solana position.
Zero Gravity Labs Gains Momentum
For Zero Gravity Labs, the partnership with Flora provides further legitimacy ahead of its token distribution and eventual exchange listing. The project has already raised 75 million dollars in seed funding and secured a 250 million dollar token purchase agreement with the 0G Foundation. Its central goal is to create a decentralized operating system capable of training large-scale artificial intelligence models across distributed networks. According to the development team, testnet results demonstrated the ability to train a model with 107 billion parameters using only standard internet connections.
Daniel Reis-Faria, who is set to take over as Flora’s chief executive, described the strategy as a way to offer institutional investors an equity-based channel to support transparent and cost-effective AI development infrastructure. As part of the same approach, the company also plans to integrate Solana into its treasury, signaling a stronger commitment to the broader digital asset ecosystem.
Looking Ahead to Market Debut
The agreement is expected to close on September 26, by which time Flora Growth will have transitioned to its new identity as ZeroStack. The timing coincides with the release of the 0G token, which will provide the market with its first real test of investor appetite for a blockchain platform designed specifically to power artificial intelligence applications.
Industry observers believe this combination of corporate rebranding, deep crypto integration, and AI-focused blockchain development could mark a turning point for Flora Growth, placing it at the intersection of two of the fastest-evolving sectors in global technology.
