/NOT FOR DISSEMINATION IN THE UNITED
STATES OR FOR DISTRIBUTION TO UNITED
STATES WIRE SERVICES/
TORONTO, Oct. 15, 2020 /CNW/ - Fire & Flower Holdings
Corp. (TSX: FAF) (OTCQX: FFLWF) 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 growth. Our acquisition strategy is
based upon valuing the four-wall retail economics of these
businesses," shared Trevor Fencott,
Chief Executive Officer of Fire & Flower. "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.
More information on the grand re-opening dates and times of the
stores once transitioned to the Fire & Flower brand will be
announced on the Company's website at
http://fireandflower.com/.
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 while the
Hifyre™ digital platform and
Spark™ program connect cannabis consumers with
the latest cannabis products and deliver cutting edge insights into
evolving consumer behaviours. 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 Fire & Flower Inc., a licensed cannabis retailer that
owns cannabis retail store licences in the provinces of
Alberta, Saskatchewan, Manitoba and Ontario and the Yukon territory.
Through its strategic investment with Alimentation Couche-Tard
Inc., the Company has set its sights on the global expansion as new
cannabis markets emerge.
More information on Fire & Flower can be found at
www.fireandflower.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
This news release contains certain
forward-looking information within the meaning of applicable
Canadian securities laws ("forward-looking statements"). All
statements other than statements of present or historical fact are
forward-looking statements. Forward-looking statements are often,
but not always, identified by the use of words such as
"anticipate", "achieve", "could", "believe", "plan", "intend",
"objective", "continuous", "ongoing", "estimate", "outlook",
"expect", "project" and similar words, including negatives thereof,
suggesting future outcomes or that certain events or conditions
"may" or "will" occur. These statements are only
predictions.
Forward-looking statements are based on the opinions and
estimates of management of Fire & Flower at the
date the statements are made based on information then available to
the Fire & Flower. Various factors and
assumptions are applied in drawing conclusions or making the
forecasts or projections set out in forward-looking statements,
including with respect to the closing of the acquisitions.
Forward-looking statements are subject to and involve a number of
known and unknown, variables, risks and uncertainties, many of
which are beyond the control of Fire & Flower,
which may cause Fire & Flower's actual
performance and results to differ materially from any projections
of future performance or results expressed or implied by such
forward-looking statements. Such factors, among other things,
include: final regulatory and other approvals or consents;
fluctuations in general macroeconomic conditions; fluctuations in
securities markets; the impact of the COVID-19 pandemic; the
ability of the Company to successfully achieve its business
objectives and political and social uncertainties.
No assurance can be given that the expectations reflected in
forward-looking statements will prove to be correct. Although the
forward-looking statements contained in this news release are based
upon what management of the Company believes, or believed at the
time, to be reasonable assumptions, the Company cannot assure
shareholders that actual results will be consistent with such
forward-looking statements, as there may be other factors that
cause results not to be as anticipated, estimated or intended.
Readers should not place undue reliance on the forward-looking
statements and information contained in this news release.
Additional information regarding risks and uncertainties relating
to the Company's business are contained under the heading "Risk
Factors" in the Company's annual information form dated
April 29, 2020 and the heading "Risks
and Uncertainties" in the management discussion and analysis for
the thirteen and twenty-six weeks ended August 1, 2020 filed on its issuer profile on
SEDAR at www.sedar.com.
No stock exchange, securities commission or other regulatory
authority has approved or disapproved the information contained
herein.
SOURCE Fire & Flower Holdings Corp.