TORONTO, Oct. 25, 2021 /CNW/ – Fire & Flower Holdings Corp. (“Fire & Flower” or the “Company”) (TSX: FAF) (OTCQX: FFLWF), a leading, technology-powered, adult-use cannabis retailer, today announced that it has repaid in full its obligations under its previously announced secured debt facilities provided by ATB Financial (“ATB”).
As announced on April 21, 2020, ATB extended two separate loan facilities to Fire & Flower on a two-year term: a revolving credit facility in the amount of $5 million, and a term loan in the amount of $5 million (collectively, the “Facilities”). Prior to repayment of the Facilities, the Company had $2.3 million outstanding under the term loan facility and had not drawn on the revolving credit facility, and maintained $3.9M in restricted cash in collateral and reserve accounts held by ATB as security for repayment of interest, fees and principal. The outstanding debt was repaid from cash held in a restricted collateral account, and the net cash in those accounts may be redeployed by the Company for its near-term growth and investment activities.
The Company was permitted to repay amounts outstanding under the Facilities prior to maturity without penalty. The repayment allows the Company to avoid additional interest charges and fees payable over the remainder of the term.
Following its early repayment of the Facilities, the Company’s sole long-term debt obligations are approximately $2.4M principal amount of 8% unsecured convertible debentures outstanding to 2707031 Ontario Inc., a wholly-owned indirect subsidiary of Alimentation Couche-Tard Inc., which mature on June 30, 2023. As previously announced on March 2, 2021, Fire & Flower exercised its right to convert $23.6M principal amount of 8% unsecured convertible debentures then-outstanding to 2707031 Ontario Inc.
Our ability to fully repay our bank debt six months early signifies the strength of our evolving asset-light business strategy, as well as, our unique opportunity to advance a number of near and long-term growth opportunities that focus on our competitive data-driven cannabis retail technology.
Trevor Fencott, Chief Executive Officer of Fire & Flower
With almost no debt on our balance sheet, we are strongly positioned to enter the next stage of our operational growth with our key industry partnerships in order to build our global leadership position as today’s most advanced technology-based cannabis retailer.
About Fire & Flower
Fire & Flower is a leading, technology-powered, adult-use cannabis retailer with more than 95 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 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 Fire & Flower U.S. Holdings 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 and Ontario, and the Yukon territory.
To learn more about Fire & Flower, visit www.fireandflower.com.
Original press release