Completion of the acquisition solidifies Fire & Flower's national leadership position, creating the largest footprint for a Canadian cannabis retailer.
Fire & Flower Holdings Corp. (TSX: FAF) and its wholly-owned subsidiary Fire & Flower Inc. is pleased to announce the closing of the previously announced acquisition of all of the issued and outstanding shares of Friendly Stranger Holdings Corp. ("FSHC") by Fire & Flower
FFHC now owns and operates, directly or indirectly, a total of 69 stores under four distinct retail banners, including 21 licensed stores in Ontario and an additional 9 stores in Ontario admitted to the queue for licensing, giving the Company the largest footprint in both Ontario and Canada.
Closing of the Acquisition was completed following receipt of all required third-party and regulatory approvals (including the conditional approval of the Toronto Stock Exchange and the Alcohol and Gaming Commission of Ontario (the "AGCO")).
As consideration for the Acquisition, the Company issued to the shareholders of Friendly Stranger an aggregate of 31,297,342 common shares of FFHC (the "Consideration Shares"), subject to certain holdbacks set out in the share purchase agreement between the Company, FSHC and certain security holders of FSHC.
This deal rapidly expands our network in Canada's largest market and provides us with increased scale that will help us achieve our goal of positive operating EBITDA Fire & Flower CEO, Trevor Fencott.
"It brings the iconic Friendly Stranger, Happy Dayz and Hotbox banners into the Fire & Flower portfolio and provides us with additional tools for growth."
"There is remarkable depth to this combined company," shared James Jesty, President of Friendly Stranger. "This is an unparalleled opportunity to connect our legacy consumer base with the strength of a national player under Fire & Flower's technology-enhanced retail model."
FSHC holds, directly or indirectly, licences to operate 13 cannabis retail stores currently operating in the province of Ontario under the "Friendly Stranger", "Hotbox" and "Happy Dayz" brands, including four in the key urban market of Toronto. The stores will continue to operate under the Friendly Stranger, HotBox and Happy Dayz brands.
Pursuant to the terms of the Acquisition, an aggregate of 4,854,369 Consideration Shares are being held in escrow and will, subject to certain conditions, be released to the former shareholders of Friendly Stranger.
To learn more about Fire & Flower visit the company HQ here.
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