GREY:FFLWF - Post by User
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Humaniston Jul 24, 2020 6:23am
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FAF ANNOUNE EARLY EXERCISE OF WARRANTS BY ALIMENTATION....
FAF ANNOUNE EARLY EXERCISE OF WARRANTS BY ALIMENTATION....Fire & Flower Announces Proposed Early Exercise of Majority of Series A Warrants by Alimentation Couche-Tard and Amendments to Strategic Investment https://www.newswire.ca/news-releases/fire-amp-flower-announces-proposed-early-exercise-of-majority-of-series-a-warrants-by-alimentation-couche-tard-and-amendments-to-strategic-investment-823171210.html Fire & Flower Holdings Corp. Jul 23, 2020, 18:06 ET
Equity investment of approximately $19 Million by Alimentation Couche-Tard, resulting in approximately 15% ownership of Fire & Flower in support of continued retail expansion
EDMONTON, AB, July 23, 2020 /CNW/ - Fire & Flower Holdings Corp. ("Fire & Flower" or the "Company") (TSX: FAF) (OTCQX: FFLWF), today announced that it has entered into an amendment agreement (the "Amendment Agreement") with respect to certain amendments (the "Amendments") to the securities of the Company issued to an indirect wholly-owned subsidiary of Alimentation Couche-Tard Inc. (collectively, "ACT").
Highlights of Proposed Amendments
Fire & Flower - Alimentation Couche-Tard Logos (CNW Group/Fire & Flower Holdings Corp.) - Cash commitment by ACT of approximately $19 million in 2020 in connection with the exercise of certain amended Series A warrants.
- Increased operational flexibility by extending maturity date of ACT's $25,989,985 principal amount 8.0% convertible unsecured debentures (the "ACT Debentures") by two years to June 30, 2023 and amending the maturity date of the April 2020 Debentures (as defined below) to June 1, 2022.
- Market-based re-pricing to a maximum of $1.875 for the Series B warrants and $3.00 or a potential 25% premium to market for the Series C warrants.
"We are pleased with the proposed amendments to the strategic investment by Alimentation Couche-Tard and believe this will continue to build our strategic relationship," shared Trevor Fencott, Chief Executive Officer of Fire & Flower. "With our close relationship with Couche-Tard including our co-located pilot stores, our path towards positive operating EBITDA, the removal of near-term debt maturities and a continued strengthened cash position to fund store expansion, we are positioned as a leader in Canadian cannabis retail."
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