EDMONTON, May 2, 2019 /CNW/ – Fire & Flower Holdings Corp. (TSXV: FAF), today announced it has entered into a definitive agreement (the “Agreement”) pursuant to which Fire & Flower will acquire certain assets of Prairie Sky Cannabis Inc. (the “Vendor”).
The Vendor currently operates four licensed retail cannabis shops in the province of Saskatchewan in the communities of Battleford, Estevan, Martensville and Moosomin, Saskatchewan (the “Locations”) under the name Jimmy’s Cannabis Shop.
“The acquisition of four additional retail cannabis stores in the province of Saskatchewan is the first in Fire & Flower’s aggressive acquisition strategy for 2019. In conjunction with our Open Fields wholesale distribution platform in the province, it cements our leadership position in this strategic market. Along with our existing portfolio of organic growth opportunities, the acquisition puts us in a good position to meet our growth goals for the year.” shared Trevor Fencott, Chief Executive Officer of Fire & Flower. “We look forward to becoming trusted members of these local communities and effecting a smooth transition of existing local staff to serve consumers in the communities in which we operate.”
Following the closing of the transaction contemplated in the Agreement, Fire & Flower anticipates that the acquisition of the four Jimmy’s Cannabis Shop locations will:
Grow the company’s brand presence across the province of Saskatchewan;
Strengthen company’s Open Fields Distribution network in the province;
Increase company’s geographic ability to serve the province through its bricks and mortar, e-commerce, delivery and click and collect sales channels; and
Provide additional insights into consumer behaviours and preferences through Fire & Flower’s proprietary HiFyre digital retail platform.
“Fire & Flower are exemplary operators of cannabis retail stores and we are pleased that our customers will be well served by the Fire & Flower team,” shared John Thomas, President of Prairie Sky Cannabis Inc. “Fire & Flower has demonstrated its commitment to the province of Saskatchewan and we wish the company success in its pursuit as Canada’s leading cannabis retailer.”
Pursuant to the Agreement, Fire & Flower Inc., a wholly-owned subsidiary of the Company, will acquire the assets of the Vendor, including its interest in the leases, equipment, furnishings, inventory and provincial and municipal licences and permits, used to operate licensed Locations for an aggregate purchase price of $13,000,000. The purchase price will be paid on the completion of certain milestones and will consist of $6,500,000 in cash and $6,500,000 in the form of common shares in the capital of the Company.
Completion of the proposed transaction is subject to approval of the TSX Venture Exchange.
Fire & Flower anticipates closing the transaction on or about May 13, 2019. At that time, the stores will be re-branded as Fire & Flower which will bring Fire & Flower’s store count to 17 stores across Alberta, Saskatchewan and Ontario.
About Fire & Flower
Fire & Flower is a leading purpose-built, independent adult-use cannabis retailer poised to capture significant Canadian market share.
The Company guides consumers through the complex world of cannabis through education-focused, best-in-class retailing that is centered around its proprietary HiFyre digital platform. The Company’s leadership team combines extensive experience in the cannabis industry with strong capabilities in retail operations.
Fire & Flower Holdings Corp. owns all issued and outstanding shares in the company, a licenced cannabis retailer in the provinces of Alberta and Saskatchewan, and is a consultant and licensor to all company-branded retail locations in province of Ontario.