FAF jump at the opportunity to acquire more retail stores and continue expanding despite a global pandemic.
Fire & Flower Holdings Corp. (TSX: FAF ) and its wholly-owned subsidiary Fire & Flower Inc. (collectively, "FFHC", "Fire & Flower" or the "Company") today announced that it has entered into a definitive agreement to acquire all of the issued and outstanding shares of 2673801 Ontario Inc., which owns and operates a licensed cannabis retail store at 480 Bloor Street West, Toronto, Ontario operating as "Satica Cannabis"(the "2673801 Acquisition").
Additionally, the Company has entered into a definitive agreement to acquire all of the issued and outstanding shares of Busboy Ventures Inc., which owns and operates two licensed cannabis retail stores at 1616 Wilson Avenue and 1542 Jane Street, North York, Ontario, each operating as"NCannabis" (the "Busboy Ventures Acquisition" and collectively with the 2673801 Acquisition, the "Acquisitions").
Fire & Flower continues to build out our retail network in the province of Ontario both through acquisition and organic growthTrevor Fencott, Chief Executive Officer of Fire & Flower. "
Mr Fencott went on to say "Our acquisition strategy is based upon valuing the four-wall retail economics of these businesses. As we focus on the execution of our retail growth plan across the province of Ontario and other key Canadian markets, the opening of stores is an important part of working towards our goal of positive operating EBITDA."
The purchase price of the 2673801 Acquisition consists of $750,000 in cash plus the net working capital of the business at the date of closing and 248,410 in common shares of FFHC.
The purchase price of the Busboy Ventures Acquisition consists of $700,000 cash plus the net working capital of the business at the date of closing and 2,198,655 in common shares of FFHC.
Completion of the Acquisitions is subject to the satisfaction or waiver of customary closing conditions, including the receipt of a no-objection letter from the Alcohol and Gaming Commission of Ontario and approval from the Toronto Stock Exchange. Closing is expected to occur prior to the end of the Company's current fiscal quarter.
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