NASDAQ-registered cannabis company Flora Growth has launched a $401 million financial initiative to back up zero gravity (0g), a blockchain project focused on the power of decentralized AI infrastructure.
The move will be removed primarily with 0g tokens through a private placement transaction combining $35 million in cash and $366 million in physical digital assets. As part of the deal, Flora will rebrand as zero stack while maintaining the NASDAQ ticker FLGC, according to a announcement Friday.
Solana (Sol) Treasury Company Defi Development Corp. (DFDV) led the transaction along with Hexstone Capital and Carlsberg Se Asia Pte Ltd, along with participation from companies such as DAO5, abstract ventures and distributed capital.
“We are excited to partner with FLGC on this fundraising and look forward to driving deep collaboration between 0G and Solana,” said Joseph Onorati, CEO of DFDV. Flora will also hold a portion of the Treasury Department at Sol Tokens.
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Zero Gravity Trains 107B-Parameter AI Model
The purpose of this investment is to expand the 0G AI infrastructure. This can already be trained that 100 billion parameter models can already be trained using distributed clusters. 0G claims 357 times more efficiency improvements than existing distributed AI frameworks.
Next CEO, Daniel Reis Faria, described the Treasury move as a way in which institutional investors gain equity-based exposure to “transparency, verifiable, and privacy-first AI infrastructure.”
Shareholder approval is expected to close by September 26th, pending. Certain investors will receive a pre-funded warrant related to the use of 0G tokens in the offering.
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Standard chartered warning warning DAT Shakeout when MNavs collapses
According to Standard Chartered, Digital Asset Treasury (DAT) companies are facing pressure as the market net asset value (MNAV) across the sector is declining sharply. Boosted by the success of the strategy’s Bitcoin accumulation model, Dat Boom has stagnated and exposed small players to an increased risk as valuations sink.
MNAVs above one usually allow a company to issue new shares and expand its crypto holdings. However, as much data is currently trading below that threshold, access to low-cost capital has been drained and accumulation and growth has stalled.
Banks are looking forward to sector-wide integration as bigger funded players like Strategy and Bitmine are likely emerging as winners. Small businesses struggling with suppressed MNAV could be their acquisition target.
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