/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES/
Asset light e-commerce model focuses on acquiring significant cannabis online user traffic, enrolling cannabis consumers into Spark Perks™ program, and launching branded online dispensary model in Canada and the U.S.
TORONTO , Aug. 4, 2021 /CNW/ - Fire & Flower Holdings Corp. (" Fire & Flower " or the " Company ") (TSX: FAF) (OTCQX: FFLWF) and its wholly-owned subsidiary Hifyre™ Inc. ("Hifyre"), today announced the acquisition of certain assets from subsidiaries of Wikileaf Technologies Inc. (CSE: WIKI) ("Wikileaf"), an online platform for cannabis enthusiasts and consumers, as part of its innovative new digital strategy focused on enhancing the Company's proprietary data-driven retail platform.
Wikileaf, which generates significant user traffic through engaging content and domain name strength, will be boosted through the incorporation of Hifyre's unique data-driven technology solutions into its existing platform. Hifyre will transform the Wikileaf website into a virtual online dispensary for cannabis and accessory products utilizing the same e-commerce proprietary technology platform that powers the Fire & Flower retail network. Accessory products will be fulfilled through Fire & Flower's agreement with Humble & Fume (CSE: HBML) announced last month.
A key aspect of the new digital strategy, Hifyre will create white-labelled online dispensaries fulfilled initially by the Fire & Flower retail network, that can be expanded to other cannabis dispensaries and delivery channels both in Canada and the U.S. In addition, users of all white-labelled websites will be enrolled into Fire & Flower's proprietary Spark Perks membership loyalty program, expanding upon its ability to capture a high level of engagement and understanding of cannabis consumer preferences and habits both in Canada and the U.S.
"Hifyre's expanded digital strategy offers a significant opportunity to expand the Company's e-commerce revenue channels through an asset-light and highly scalable model both in Canada and the U.S.," shared Trevor Fencott , Chief Executive Officer of Fire & Flower. "The branded online dispensary model is accretive to our retail channel as it offers the opportunity to capture new customers and drive an additional stream of high margin revenue through our Hifyre platform."
"We believe owning the customer relationship is the most prized part of the value chain and this has been successfully achieved through membership in our Spark Perks program," shared Matthew Hollingshead , Chief Innovation Officer of Fire & Flower and President of Hifyre. "Our ability to white-label our e-commerce platform offers the opportunity for any brand to create a virtual online cannabis dispensary through our proprietary technology."
Definitive Asset Purchase Agreement of Wikileaf
As part of the Hifyre digital strategy, the Company has entered into a definitive asset purchase agreement with Wikileaf Technologies Inc. and certain subsidiaries thereof (the "Asset Purchase Agreement"). Pursuant to the Asset Purchase Agreement, Hifyre will acquire certain digital assets and intellectual property rights of Wikileaf.
The website, associated domain names, e-mail subscriber database, social media channels, content generation platforms, trademarks and technology stack powering the Wikileaf platform generates significant online cannabis user traffic.
Total consideration for the purchase is $7.5 million , payable in common shares of Fire & Flower based upon the Company's 10-day volume weighted average price. The transaction is anticipated to close during the Company's fiscal third quarter and is subject to customary conditions including the satisfaction or waiver of all conditions in the Asset Purchase Agreement and the receipt of applicable regulatory approvals (including the approval of the Toronto Stock Exchange) and Wikileaf shareholder approval.
To learn more about Wikileaf, visit www.wikileaf.com .