Fire & Flower Holdings Corp. Archives - Green Market Report

StaffAugust 4, 2021
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Fire & Flower Holdings Corp.  (OTCQX: FFLWF) and its wholly-owned subsidiary Hifyre Inc. has purchased certain subsidiaries of Wikileaf Technologies Inc. (CSE: WIKI), 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.  It is an all-stock deal valued at $7.5 million. 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.

Online Virtual Dispensary

Wikileaf said in a statement that it generates significant user traffic through engaging content and domain name strength that will be boosted through the incorporation of Hifyre’s unique data-driven technology solutions into its existing platform. Hifyre said it 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-labeled 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-labeled 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.

Connor Cruise, Wikileaf Chair and Interim CEO said, “We firmly believe this transaction is in the best interest of Wikileaf shareholders. The combination of Wikileaf’s digital assets and Hifyre’s proprietary cannabis digital retail and analytics platform offers the strongest opportunity to realize the value of Wikileaf’s operations to drive continued growth for our online platform. Wikileaf has pursued internally generated as well as the evaluation of merger and acquisition opportunities to monetize the value of the Assets. Through the continued process of internal monetization development of the Assets, it was identified that significantly more financial resources and technical expertise would be required. Wikileaf has actively pursued potential merger and acquisition opportunities to monetize the value of the Assets and determined that the sale of the Assets to Fire & Flower represents the best opportunity to maximize the value of the Assets. Wikileaf intends to retain the Fire & Flower shares for investment purposes at this time and will consider options on what to do with the investment after the transaction is completed.”

“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.”


William SumnerJuly 24, 2019
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You may not be able to purchase cannabis from your local gas station, but that hasn’t stopped the international convenience store chain Alimentation Couche-Tard (TSX: ATD.A ATD.B) from staking a claim in the industry. Today it was announced that the company would purchase a stake in Fire & Flower Holdings Corp. (TSXV: FAF) $25.9 million.

With over 16,000 stores in 25 countries, Fire & Flower hopes to leverage Couche-Tard’s retail footprint to help aid its own international expansion. This does not mean that company’s cannabis products will be found in a Couche-Tard convenience store anytime soon, but rather that Couche-Tard’s resources will help with growth initiatives like growing and expanding the company’s digital platform Hifyre.

“This strategic investment by Couche-Tard, one of the world’s largest retailers, is transformative for Fire & Flower,” said Fire & Flower CEO, Trevor Fencott. “The support of Couche-Tard’s world-class leadership team, coupled with their impressive international footprint which includes major markets such as the US, Mexico and Europe, provide us with outstanding opportunities for aggressive growth.”

The purchase will be made by an indirect wholly-owned subsidiary of Couche-Tard through a subscription agreement, upon which Fire & Flower will issue 24,289,706 common shares of the company at a price of $1.07 per common Share, representing a 9.9% ownership interest.

Concurrently, Couche-Tard will receive three series of common share purchase warrants. If exercised, Couche-Tard would increase its stake in the Fire & Flower to 50.1%. Couche-Tard will also be granted board nomination rights. Upon closing of the transaction, Fire & Flower will uplist to the TSX.

“Couche-Tard is excited to make this strategic investment in one of the fastest growing cannabis ‘pure-play’ retailers,” said Brian Hannasch, President and CEO of Couche-Tard. “This investment in Fire & Flower, with a path to a controlling stake, will enable us to leverage their leadership, network and advanced digital platform to accelerate our journey in this new and flourishing sector.”


William SumnerJune 26, 2019
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It’s time for your Daily Hit of cannabis financial news for June 26, 2019.

On the Site

Canopy Growth

Canopy Growth Corporation (TSX: WEED, NYSE: CGC)  has acquired Saskatoon-based bio-product extractor KeyLeaf Life Sciences. Canopy Growth said it has been working closely with KeyLeaf – formerly known as POS Bio-Sciences – as a trusted partner building out extraction processes and technology for the past year as it refines its scale extraction model for Canadian and global markets.

Executive Spotlight: Corey Mangold, Co-Founder & CEO of Orchid Essentials

No stranger to entrepreneurship, Corey Mangold started his first company at the young age of 18. Even in his teens, he understood the great risk, and potential reward of going into business for yourself and accepted that challenge head-on.

In Other News

GrowGeneration Corp.

GrowGeneration Corp. (OTCQX: GRWG) announced that it had raised $12.8 million in an upsized private placement offering, issuing 4,123,254 shares at a price of $3.10 and 2,061,632 warrants exercisable at $3.50 per share. All the company’s strategic institutional investors participated in the offering. “With the completion of our oversubscribed offering, the Company now has over $16 million of cash on the balance sheet to execute on multiple acquisitions, with several planned to close in the 3rd and 4th quarters of 2019,” said Darren Lampert, Co-Founder and CEO of GrowGen.

Fire & Flower Holdings Corp.

Fire & Flower Holdings Corp. (TSXV: FAF) announced the closing of a private placement offering. Selling 27,188 convertible debenture units at a price of $1,000 per unit, the company raised $27.18 million. The company also announced its financial results for the three-month period ending on May 4, 2019. Recognized revenue was $9.5 million, with a gross margin of 38.5%. The net loss for the period was $17.1 million. “These results provide a solid foundation upon which Fire & Flower will continue to execute on our growth strategy. Our growth plan is well funded and in addition to the strength of our retail network, we have set ourselves apart as a modern retail company through the Hifyre digital cannabis platform that is reflective in our financial performance” commented Fire & Flower CEO Trevor Fencott.


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