/NOT FOR DISSEMINATION IN THE UNITED STATES OR
FOR DISTRIBUTION TO UNITED STATES
WIRE SERVICES/
New option to purchase drives global retail
expansion of the Fire & Flower brand & Hifyre technology
platform with planned strategic entry into the high-growth
California, Arizona and Nevada markets
TORONTO, Feb. 22, 2021 /CNW/ - Fire & Flower Holdings
Corp. ("Fire & Flower" or the
"Company") (TSX: FAF) (OTCQX: FFLWF), today
announced that it has entered into agreements (the "Strategic
Agreements") with a Canadian private company, operating as
"American Acres Managers" ("American Acres") including an agreement
to license its Fire & Flower brand, store operating system and
Hifyre™ technology platform for dispensaries in California, Arizona and Nevada as the Company aims to deliver its
best-in-class technology and retail functionality in these
competitive, high growth markets.
The Strategic Agreements provide Fire & Flower with a
discounted path to corporately-owned cannabis retail stores in
major markets in the United
States. Under the Strategic Agreements, in
recognition of the value of the Fire & Flower license, Fire
& Flower will have the option to acquire American Acres at a
discount to fair market value. The acquisition is expected to occur
upon the federal legalization of adult-use cannabis in the United States or when otherwise permitted
by the policies of the Toronto Stock Exchange or any other stock
exchange on which the Company's securities are listed for
trading.
"Since becoming Canada's
largest retail network for legal cannabis products and services, we
have strongly positioned our brand, operating system and technology
to successfully enter key international markets where we believe
our platform would be strongly valued. Due to the rapid
success of our operational model in Canada, the Fire & Flower brand is poised
to become a key player in the U.S. cannabis industry, where the
demand for incorporating technologically advanced systems in
cannabis retail has never been greater. Our Hifyre technology
has surpassed our competitors' offerings by streamlining the
customer experience and driving greater margins, and places the
Fire & Flower brand in a unique position to play a leading role
in competitive U.S. cannabis markets," commented, Trevor Fencott, Chief Executive Officer of Fire
& Flower.
Fencott continued, "Securing an agreement that will rapidly
place Fire & Flower licensed stores in the United States is the first step in
executing our vision well ahead of federal legalization in
the United States. This strategic
agreement is transformative in the sense that Fire & Flower
will be one of the only cannabis retail brands with its flag flown
internationally. We look forward to supporting American Acres on
Fire & Flower brand store openings in some of the world's
largest cannabis markets."
Fire & Flower anticipates the first branded store to be open
in Palm Springs, California,
during the first half of its fiscal 2021 year.
Highlights of the Strategic Agreements
- The Company has demonstrated strong operational success in the
competitive, first federally legal market, and the Strategic
Agreement allows for the opportunity to export successful model
into U.S.
- Offers opportunity for the Fire & Flower brand and
technology to enter into other U.S. cannabis markets.
- Provides discounted path to corporate-owned stores in major US
markets.
- The Strategic Agreements provide for the licensing of the Fire
& Flower brand, store operating system and Hifyre™ technology
platform to American Acres on a royalty-free basis.
- Opportunity to leverage the Company's proven technology to
drive greater profitability in existing U.S. retail stores and sets
stage for acquisitive growth strategy when legal.
- Proposed strategic entry into California aligns with Fire & Flower's
optimal operating model which includes:
-
- Direct relationships with product producers
- Private retail
- E-Commerce
- Delivery
About Fire & Flower
Fire & Flower is a leading purpose-built,
independent adult-use cannabis retailer focused on the
Canadian market and international expansion opportunities. The
Company guides consumers through the complex world of cannabis
through education-focused, best-in-class retailing while
the HifyreTM digital platform connects
consumers with cannabis products. The Company's leadership team
combines extensive experience in the cannabis industry with strong
capabilities in retail operations.
Fire & Flower is a multi-banner cannabis retail operator
that owns and operates the Fire & Flower, Friendly Stranger,
Happy Dayz and Hotbox brands.
Fire & Flower Holdings Corp. owns all issued and outstanding
shares in Fire & Flower Inc. and Friendly Stranger Holdings
Corp., licensed cannabis retailers that own and operate
cannabis retail stores in the provinces of Alberta, Saskatchewan, Manitoba and Ontario, and the Yukon territory.
Through the strategic investment of Alimentation
Couche-Tard Inc. (owner of Circle K convenience stores), the
Company has set its sights on the global expansion as new cannabis
markets emerge.
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 in this news release include, but are not limited to,
statements in respect of the development of Fire & Flower
branded stores in the United
States and the potential acquisition of American
Acres.
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 Transaction on the
terms described herein or at all. 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 thirty-nine weeks ended October 31, 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.