GREY:FFLWF - Post Discussion
Post by
whoknows on Apr 21, 2022 11:36am
Couche-Tard To Increase Ownership Stake To 35%
Fire & Flower (TSX: FAF) is set to see Alimentation Couche-Tard increase its stake in the company. It was indicated this morning that the convenience retailer would be increasing its ownership to slightly over one-third of the firms equity.
The expansion in the ownership of Fire & Flower by Couche-Tard is set to occur via the exercising of 8.3 million Series B Warrants under the revised arrangement entered into between the two firms in January. The price to be paid will be based on the 20 day volume weighted average price of the equity at the time of closing, with 1.6 million of the warrants subject to a minimum exercise price of $4.77 per share.
Following the closing of the warrant exercises, Couche-Tard’s ownership will climb from 14.49% to 35.32%. The company had previously owned as much as a 22.35% stake in the company before being diluted in recent months. The firm originally took a stake in the cannabis retailer in mid 2019, amid the height of cannabis-sector hype.
The warrants are set to be exercised two days following the announcement of Fire and Flower’s 2021 financial results. Results are currently scheduled to be released on April 26.
Fire and Flower last traded at $4.44 on the TSX.
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