Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWF) and its wholly-owned subsidiary Fire & Flower Inc. (collectively, “FFHC”, “Fire & Flower” or the “Company”), a leading Canadian recreational cannabis retailer, is pleased to announce that it has entered into a definitive agreement to acquire all of the issued and outstanding shares of Quad Nine Investments Inc., which owns and operates a licensed cannabis retail store at 717 College Street, Toronto, Ontario currently operating as “Blaze Cannabis”, the (“Acquisition”).
Completion of the acquisition will add Fire & Flower’s eighth fully owned, open and operating location in the province of Ontario. The Company continues to focus on the opening of additional cannabis retail stores in the province that have already completed construction.
“This proposed acquisition will represent Fire & Flower’s continued strategy to further grow our omni-channel, technology-enabled retail network in the province of Ontario and across the country, both through acquisition plus organic growth.” said Trevor Fencott, Chief Executive Officer of Fire & Flower. “This additional store expands our operating base and brings us closer to our goal of positive operating EBITDA.”
The acquisition includes a current Retail Operator License and Retail Store Authorization from the Alcohol and Gaming Commission of Ontario (the “AGCO”), which has issued a no-objection letter in respect of the Acquisition.
The total purchase price in connection with the Acquisition is $900,000 plus the net working capital of the business (including inventory) at the date of closing in cash plus 124,069 common shares of FFHC.
The Acquisition is subject to customary closing conditions, including the receipt of a no-objection letter from the AGCO and approval from the Toronto Stock Exchange, each of which has already been received.
More information on the grand opening dates and times of the store, once transitioned to the Fire & Flower brand, will be announced on the Company’s website at https://fireandflower.com/.
About Fire & Flower
Fire & Flower is a leading purpose-built, independent adult-use cannabis retailer poised to capture significant Canadian market share. The Company guides consumers through the complex world of cannabis through education-focused, best-in-class retailing while the HifyreTM digital platform and SparkTM program connect cannabis consumers with the latest cannabis products and deliver cutting edge insights into evolving consumer behaviours. The Company’s leadership team combines extensive experience in the cannabis industry with strong capabilities in retail operations.
Fire & Flower Holdings Corp. owns all issued and outstanding shares in Fire & Flower Inc., a licensed cannabis retailer that owns cannabis retail store licences in the provinces of Alberta, Saskatchewan, Manitoba and Ontario and the Yukon territory.
Through its strategic investment with Alimentation Couche-Tard Inc., the Company has set its sights on the global expansion as new cannabis markets emerge.
More information on Fire & Flower can be found at www.fireandflower.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward-looking information within the meaning of applicable Canadian securities laws (“forward-looking statements”). All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “outlook”, “expect”, “project” and similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions “may” or “will” occur. These statements are only predictions.
Forward-looking statements are based on the opinions and estimates of management of Fire & Flower at the date the statements are made based on information then available to the Fire & Flower. Various factors and assumptions are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements, including with respect to the closing of the Acquisition. Forward-looking statements are subject to and involve a number of known and unknown, variables, risks and uncertainties, many of which are beyond the control of Fire & Flower, which may cause Fire & Flower‘s actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors, among other things, include final regulatory and other approvals or consents; fluctuations in general macroeconomic conditions; fluctuations in securities markets; the impact of the COVID-19 pandemic; the ability of the Company to successfully achieve its business objectives and political and social uncertainties.
No assurance can be given that the expectations reflected in forward-looking statements will prove to be correct. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. Additional information regarding risks and uncertainties relating to the Company’s business are contained under the heading “Risk Factors” in the Company’s short form base prospectus dated November 28, 2020 and annual information form dated April 29, 2020 and the heading “Risks and Uncertainties” in the management discussion and analysis for the thirteen and twenty-six weeks ended August 1, 2020 filed on its issuer profile on SEDAR at www.sedar.com.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
SOURCE Fire & Flower Holdings Corp.