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Flora Growth (NASDAQ: FLGC), a US -listed company, announced on September 19, 2025, that it had completed a $401 million private placement. The company will use $0G, the native cryptocurrency of its decentralized AI infrastructure project, as its primary reserve asset. The private placement was led by DeFi Development Corp. (DFDV), with participation from Hexstone Capital, Carlsberg SE Asia PTE Ltd (CSAPL), and several other institutions. The total investment comprised $36.6 million in cash and $350 million in digital assets.
According to an official announcement, Flora Growth expects to change its name to ZeroStack upon completion of the transaction, retaining the stock symbol "FLGC." The company will appoint 0G co-founder Michael Heinrich as Executive Chairman and Daniel Reis-Faria as CEO, further strengthening its collaboration with the 0G ecosystem.
0G: Distributed AI Training and Storage Infrastructure
0G is a blockchain project focused on decentralized AI training and storage. Emphasizing unlimited scalability, it has successfully trained a 107 billion-parameter AI model over a low-bandwidth network, reportedly achieving a 357x performance improvement over Google's DiLoCo research. 0G is also the first Web3 AI company to vertically integrate the storage, computing, and training markets, fueled by $0G.
This private placement transaction utilizes a PIPE (Private Investment in Public Equity) model. Investors can choose to subscribe for company shares using either $0G tokens or cash. Some investors will also receive pre-subscription warrants, exercisable upon shareholder approval. The company will also hold a portion of Solana (SOL) tokens, deepening its collaboration with the Solana ecosystem.
AI Treasury Strategy: A New Look at Corporate Asset Allocation
Flora Growth’s new CEO, Daniel Reis-Faria, stated:
AI is not only changing what businesses do, but also how they build infrastructure. This treasury strategy allows institutional investors to participate in the growth of AI infrastructure through equity, while prioritizing transparent, verifiable, scalable, low-cost, and privacy-first AI development.
The transaction is expected to be completed on September 26, 2025. The funds will be used to further acquire $0G tokens and strengthen the company's layout in the field of decentralized AI infrastructure.
Flora Growth also currently operates a global pharmaceutical distribution business through its wholly-owned subsidiary, Phatebo GmbH. This private placement is open only to accredited investors and is subject to U.S. securities laws.
