Wikileaf Archives - Green Market Report

StaffAugust 4, 2021

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.”

StaffJanuary 16, 2020

Wikileaf Technologies Inc. (CNSX: WIKI) founder Dan Nelson will step down as the Chief Executive Officer and become the company’s, Chief Growth Officer. One of the company’s early investors and advisors Derek Firth has been appointed as the CEO of the Company. Wikileaf is a price comparison platform for recreational and medicinal cannabis consumers and it gives consumers real-time price comparison of cannabis strains and brands based on a user’s location.

Firth said, “Over the past five years, Dan has been dedicated to creating Wikileaf and growing it into the third-most-trafficked cannabis website in the U.S. I’ve been working closely with him since 2017. His vision and passion for this industry are what attracted investors like Nesta and myself to the company. Dan will continue to be the innovative driver of Wikileaf and I thank him for establishing the foundation for a company that is very well-positioned to lead in the emerging cannabis technology space.”

Firth will receive incentive stock options to purchase up to 1 million common shares exercisable at a price of C$0.12 per common share. The options have a term of 10 years and vest over tranches and based on achievement of milestones over a period of 24 months as follows:

250,000 shall vest automatically one year from the Effective Date;
250,000 shall vest if on or before the year ended December 31, 2021, the Corporation reaches the Break-Even Point as evidenced by the audited financial statements of the Corporation for the relevant period;
250,000 shall vest if on or before the year ended December 31, 2021, the Corporation achieves greater than $5 million USD in revenue as evidenced by the audited financial statements of the Corporation for the relevant period; and
250,000 shall vest if on or before the year ended December 31, 2021, the Corporation achieves greater than $10 million USD in revenue as evidenced by the audited financial statements of the Corporation for the relevant period.

Wikileaf stock was lately trading at C$0.12 a share and began trading on the CSE in September. The company has a market cap of C$12 million according to Yahoo Finance.

Nelson said, “When I started this company, I had one goal: to assist cannabis consumers with finding legal, location-based pricing information. Wikileaf has and will continue to be guided by this principle. But, I also realize, as a publicly-traded company, I owe it to our supporters, shareholders and team members to ensure the best leadership is in place. I have worked closely with the Board and Derek to ensure this transition is successful. I look forward to working with Derek and benefiting from his experience as an entrepreneur with an over 20-year history of launching and driving profitable digital properties.”