/NOT FOR DISSEMINATION IN THE UNITED
STATES OR FOR DISTRIBUTION TO UNITED
STATES WIRE SERVICES/
Asset light e-commerce model focuses on acquiring significant
cannabis online user traffic, enrolling cannabis consumers into
Spark Perks™ program, and launching branded online dispensary model
in Canada and the U.S.
TORONTO, Aug. 4, 2021 /CNW/ - Fire & Flower
Holdings Corp. ("Fire & Flower" or the
"Company") (TSX: FAF) (OTCQX: FFLWF) and its wholly-owned
subsidiary Hifyre™ Inc. ("Hifyre"), today announced the
acquisition of certain assets from subsidiaries of Wikileaf
Technologies Inc. (CSE: WIKI) ("Wikileaf"), an online platform for
cannabis enthusiasts and consumers, as part of its innovative new
digital strategy focused on enhancing the Company's proprietary
data-driven retail platform.
Wikileaf, which generates significant user traffic through
engaging content and domain name strength, will be boosted through
the incorporation of Hifyre's unique data-driven technology
solutions into its existing platform. Hifyre will transform the
Wikileaf website into a virtual online dispensary for cannabis and
accessory products utilizing the same e-commerce proprietary
technology platform that powers the Fire & Flower retail
network. Accessory products will be fulfilled through Fire &
Flower's agreement with Humble & Fume (CSE: HBML) announced
last month.
A key aspect of the new digital strategy, Hifyre will create
white-labelled online dispensaries fulfilled initially by the Fire
& Flower retail network, that can be expanded to other cannabis
dispensaries and delivery channels both in Canada and the U.S. In addition, users of all
white-labelled websites will be enrolled into Fire & Flower's
proprietary Spark Perks membership loyalty program, expanding upon
its ability to capture a high level of engagement and understanding
of cannabis consumer preferences and habits both in Canada and the U.S.
"Hifyre's expanded digital strategy offers a significant
opportunity to expand the Company's e-commerce revenue channels
through an asset-light and highly scalable model both in
Canada and the U.S.," shared
Trevor Fencott, Chief Executive
Officer of Fire & Flower. "The branded online dispensary model
is accretive to our retail channel as it offers the opportunity to
capture new customers and drive an additional stream of high margin
revenue through our Hifyre platform."
"We believe owning the customer relationship is the most prized
part of the value chain and this has been successfully achieved
through membership in our Spark Perks program," shared Matthew Hollingshead, Chief Innovation Officer
of Fire & Flower and President of Hifyre. "Our ability to
white-label our e-commerce platform offers the opportunity for any
brand to create a virtual online cannabis dispensary through our
proprietary technology."
Definitive Asset Purchase Agreement of Wikileaf
As part of the Hifyre digital strategy, the Company has entered
into a definitive asset purchase agreement with Wikileaf
Technologies Inc. and certain subsidiaries thereof (the "Asset
Purchase Agreement"). Pursuant to the Asset Purchase
Agreement, Hifyre will acquire certain digital assets and
intellectual property rights of Wikileaf.
The website, associated domain names, e-mail subscriber
database, social media channels, content generation platforms,
trademarks and technology stack powering the Wikileaf platform
generates significant online cannabis user traffic.
Total consideration for the purchase is $7.5 million, payable in common shares of Fire
& Flower based upon the Company's 10-day volume weighted
average price. The transaction is anticipated to close during the
Company's fiscal third quarter and is subject to customary
conditions including the satisfaction or waiver of all conditions
in the Asset Purchase Agreement and the receipt of applicable
regulatory approvals (including the approval of the Toronto Stock
Exchange) and Wikileaf shareholder approval.
To learn more about Wikileaf, visit www.wikileaf.com.
About Fire & Flower
Fire & Flower is a leading, technology-powered, adult-use
cannabis retailer with more than 85 corporate-owned stores in its
network. The Company leverages its wholly-owned technology
development subsidiary, Hifyre Inc., to continually advance its
proprietary retail operations model while also providing additional
independent high-margin revenue streams. Fire & Flower guides
consumers through the complex world of cannabis through
education-focused, best-in-class retailing while the Hifyre digital
retail and analytics platform empowers retailers to optimize their
connections with consumers. The Company's leadership team combines
extensive experience in the technology, cannabis and retail
industries.
Through the strategic investment of Alimentation Couche-Tard
Inc. (owner of Circle K convenience stores), the Company has set
its sights on global expansion as new cannabis markets emerge and
is poised to expand into the United
States when permitted through its strategic licensing
agreement with American Acres Managers upon the occurrence of
certain changes to the cannabis regulatory regime.
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
British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and the Yukon territory.
To learn more about Fire & Flower, visit
www.fireandflower.com.
About Hifyre
The Hifyre Digital Retail and Analytics Platform is a
proprietary ecosystem of products that includes the Spark Perks
member program, Hifyre ONE retail software platform and the Hifyre
IQ cannabis data and analytics platform.
The Hifyre platform also supports Fire & Flower's advanced
operations and provides a competitive advantage in providing a
tailored digital experience and understanding consumer behaviours
in the evolving cannabis market.
To learn more about Hifyre, visit www.hifyre.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 information
in this news release includes, but is not limited to, statements in
respect of the consummation of the transactions contemplated by the
Asset Purchase Agreement and the integration of any acquired assets
into the Company's operations and digital strategy.
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 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: 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 30, 2021
and the heading "Risks and Uncertainties" in the management
discussion and analysis for quarter ended May 1, 2021 filed on its issuer profile on
SEDAR at www.sedar.com. The forward-looking
statements contained in this new release are made as of the date of
this news release, and the Company does not undertake to update any
forward-looking statements that are contained or referenced herein,
except in accordance with applicable securities laws.
No stock exchange, securities commission or other regulatory
authority has approved or disapproved the information contained
herein.
SOURCE Fire & Flower Holdings Corp.