Fire & Flower Holdings Corp. (TSX: FAF) announced that its third-quarter 2019 revenue increased 443% to $13.7 million for the quarter ending November 2 over last year’s $2.5 million for the same time period. It was also higher sequentially over the 2019 second-quarter total revenue of $11.1 million.
The company also delivered a net income of $10.2 million over last year’s net loss of $22.5 million for the same time period. Fire & Flower also noted that the net income per share of $0.08 or $0.07 on a fully diluted basis for the quarter was attributed to accounting gains recorded in other income on the revaluation of the derivative liabilities associated with the convertible debentures.
“With the emerging Canadian cannabis industry facing headwinds, Fire & Flower continues to deliver a track record of growth and meeting our objectives” shared Trevor Fencott, Fire & Flower’s, Chief Executive Officer. “We anticipate meeting our goal of 45 open and operating stores by the end of our fiscal year. Our industry-leading Spark Perks members program ensures that our customers are engaged with the Fire & Flower brand as their cannabis retailer of choice.”
Since the quarter closed in November, Fire & Flower has received nine additional cannabis retail store licenses and began operating three additional cannabis retail stores in the province of Alberta. The company said it is also preparing to start operations at the remaining six licensed cannabis retail stores prior to the company’s fiscal year-end. In addition to that, Fire & Flower has entered into the final stages of the application process for cannabis retail store licensing in the province of British Columbia.
It was just a note, but one of the most important items in the company’s announcement was that it closed the strategic investment with Alimentation Couche-Tard Inc. including an initial investment of $25.9 million (through its subsidiary). The company said that the strategic investment would result in Couche-Tard obtaining a controlling interest in Fire & Flower if all securities issued in connection with the strategic investment are converted/exercised in full. This would mean that a major convenience store chain would own a cannabis company.