/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES/
EDMONTON, AB, Sept. 15, 2020 /CNW/ - Fire & Flower Holdings Corp. ("Fire & Flower" or the "Company") (TSX: FAF) (OTCQX: FFLWF), today announced its financial and operational results for the thirteen-weeks ended August 1, 2020.
Financial and Operational Highlights for the Thirteen Weeks Ended August 1, 2020
- Total revenue of $28.6 million at a gross profit of 34.8%, compared to revenue of $11.1 million in Q2-2019 at a gross profit of 36.5% - representing a 158% increase in revenue year-over-year.
- Adjusted EBITDA1 (loss) of $0.3 million, reduced from $4.8 loss million in Q2-2019 through optimization of the retail store network.
- Completed the final steps required for licensing two cannabis retail store locations in the major urban market of Vancouver, British Columbia.
- Repayment of $28.2 million of debt including the principal amount of 8.0% unsecured convertible debentures and accrued and unpaid interest thereon.
- Entered into an amendment agreement which includes a proposed early exercise of the majority of Alimentation Couche-Tard's ("ACT") Series A warrants (through an indirect wholly-owned subsidiary) that, upon exercise, would result in ACT holding an approximate 15% ownership interest and gross proceeds to the Company of approximately $19 million in 2020.
- The proposed extension of the maturity date of the unsecured debentures held by ACT potentially increases operational flexibility.
- Opened two cannabis retail locations co-located with Circle K stores in the province of Alberta.
- Continued to refine the Company's business practices in response to the COVID-19 public health crisis and maintained continuity of operations through digital engagement with customers and best-in-class in-store safety protocols.
Subsequent Financial and Operational Highlights post August 1, 2020
- Acquired a prominent downtown Toronto cannabis retail store location at the high-traffic intersection of Yonge Street and Gerrard Street, in close proximity to Yonge-Dundas square.
- Launched the Revity CBD™ private label wellness brand driven by consumer insights in the underserved CBD market in the province of Saskatchewan, through the Company's wholly-owned distribution business, Open Fields Distribution™.
- Hifyre's Spark Perks™ member program achieved an increase of approximately 45,000 members since the beginning of Q2-2020 and now has more than 145,000 members in the program that typically visit more frequently and transact with higher basket sizes, compared to non-members.
- Continued to realize positive financial and operational results as a result of optimization of the retail store network with a focus on maximizing the number of retail stores delivering positive margin contribution.
"Fire & Flower continues to drive towards delivering positive adjusted EBITDA and during our second quarter of fiscal 2020, we have made meaningful progress towards this critical goal," shared Trevor Fencott, Chief Executive Officer of Fire & Flower. "We believe the Company is well positioned to expand its footprint in the Ontario market and expects to have access to the necessary capital to support our growth plans. As the cannabis and retail industry continue to adapt to the COVID-19 public health crisis, we will remain on the leading edge of driving consumer engagement in this dynamic environment."