/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES/
Warrant exercise by one of the world's largest convenience retailers brings ownership stake to more than 35%
TORONTO , April 29, 2022 /CNW/ - Fire & Flower Holdings Corp. (" Fire & Flower " or the " Company ") (TSX: FAF) (OTCQX: FFLWF), a leading cannabis consumer retail and technology platform announced today that, further to a notice of intent to exercise delivered on April 20, 2022 , 2707031 Ontario Inc., an indirect wholly-owned subsidiary of Alimentation Couche-Tard Inc. (collectively " ACT "), has exercised warrants (the " Series B Warrants ") effective April 28, 2022 , to acquire 8,288,067 common shares of Fire & Flower (the " Shares ") pursuant to the terms of a Second Amended and Restated Warrant Certificate dated January 18, 2022 (the " Series B Warrant Certificate ") .
The Company received gross proceeds of $37,794,556 (the " Proceeds ") from the exercise of the Series B Warrants, comprising (a) 6,717,554 Series B Warrants exercised at a price of $4.5103 , representing the 20-day volume-weighted average price of the common shares of the Company and (b) 1,580,513 Series B Warrants exercised at a price of $4.7732 , in each case, in accordance with the terms of the Series B Warrant Certificate.
Pursuant to the terms of the loan agreement dated December 13, 2021 between the Company and ACT (the " Loan Agreement "), a portion of the Proceeds was used to repay all amounts owing to ACT pursuant to the Loan Agreement. There are no further amounts owing under the Loan Agreement. The remaining Proceeds from the exercise of the Series B Warrants will be used for general corporate purposes, working capital needs and to fund further strategic initiatives of the Company.
"We are excited to further strengthen our relationship with Alimentation Couche-Tard, whose unwavering support has enabled Fire & Flower to execute on our technology-focused differentiation strategy and to ultimately achieve our vision to Deliver Cannabis to the World," remarked Trevor Fencott , Chief Executive Officer of Fire & Flower.
Following the exercise of the Series B Warrants, ACT's ownership of common shares of Fire & Flower increased by approximately 14.48% to approximately 35.32%. ACT also holds $2,407,415 principal amount of 8.0% convertible debentures and 17,796,284 share purchase warrants (the " Series C Warrants "). The Series C Warrants are exercisable between October 1, 2022 and June 30, 2023 at an exercise price equal to the lesser of (A) $30.00 ; and (B) 125% of the 20-day VWAP of the Fire & Flower common shares on the last trading day prior to the date on which the Series C Warrants are exercised. 4,457,206 of the Series C Warrants, which were issued pursuant to the exercise of top-up rights by ACT, are also subject to a minimum exercise price of $4.7732 . The Company has also granted to ACT certain participation and top-up rights pursuant to an Amended and Restated Investor Rights Agreement dated September 16, 2020 to receive additional securities of Fire & Flower which, if exercised, entitle ACT to a minimum aggregate direct and indirect ownership of 50.1% of the issued and outstanding common shares of Fire & Flower on a fully diluted basis.