Fire & Flower Completes Exercise of A-3 Warrants by Alimentation Couche-Tard
The Company will receive approximately $9.8 million in gross proceeds
EDMONTON, AB, July 2, 2021 /CNW/ – Fire & Flower Holdings Corp. (“Fire & Flower” or the “Company”) (TSX: FAF) (OTCQX: FFLWF), today announced that the Company has completed the previously announced exercise of A-3 warrants by 2707031 Ontario Inc. (“2707”), a wholly-owned indirect subsidiary of Alimentation Couche-Tard Inc. (“ACT”), the owners of Circle K. The Company was granted an advanced ruling certificate from the Commissioner of Competition (“Competition Act Clearance”) which allows for the gross proceeds of approximately $9,770,374 to be released to Fire & Flower while 10,505,779 common shares of Fire & Flower, exercised at $0.93 per share, have been issued to 2707. Following the exercise of the A-3 warrants, ACT’s ownership stake in Fire and Flower is now approximately 22.4%.
2707 hold $2,407,415 principal amount of 8.0% convertible debentures, and share purchase warrants which, together with certain participation and top-up rights pursuant to an Amended and Restated Investor Rights Agreement dated September 16, 2020, if exercised in full, would entitle ACT to aggregate direct and indirect ownership of 50.1% of the issued and outstanding common shares of Fire & Flower on a fully diluted basis.
The closing of the recent exercise of A-3 warrants further solidifies the strong relationship we have with Alimentation Couche-Tard as they continue to support our emerging position as the leading technology-driven cannabis retailer, strategically expanding into new global markets.
Trevor Fencott, Chief Executive Officer of Fire & Flower
The proceeds we received following the warrant exercise have fortified our balance sheet allowing us to effectively execute on our near-term and long-term growth strategies. Having a globally recognized leader such as ACT as our strategic partners brings substantial financial benefits and global retail opportunities to Fire & Flower while creating significant value for our shareholders.
About Fire & Flower
Fire & Flower is a leading purpose-built, independent adult-use cannabis retailer focused on the Canadian market and international expansion opportunities. Fire & Flower guides consumers through the complex world of cannabis through education-focused, best-in-class retailing while the Hifyreä digital platform connects consumers with cannabis products. Fire & Flower’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 British Columbia, Alberta, Saskatchewan, Manitoba and Ontario, and the Yukon territory.
Through the strategic investment of Alimentation Couche-Tard Inc. (owner of Circle K convenience stores), Fire & Flower has set its sights on the global expansion as new cannabis markets emerge.
To learn more about Fire & Flower, visit www.fireandflower.com.
Original press release