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Fire & Flower to acquire 4 cannabis retail stores from Prairie Sky in Saskatchewan

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Fire & Flower, through a wholly-owned subsidiary, will acquire all the leases, equipment, furnishings, inventory and provincial and municipal licences and permits, used to operate the four licensed locations.

Additional Information:

Company: Fire and Flower Holdings
Website: http://www.fireandflower.com
Stock Symbol: TSXV: FAF
Date Published: May 2, 2019
Transcript: Available

Video Transcript:

I’m Cassandra Bolinski for Investmentpitch Media

Fire and Flower Holdings has entered into a definitive agreement to acquire certain assets of Prairie Sky Cannabis.

Prairie Sky currently operates four licensed retail cannabis shops in the Province of Saskatchewan in the communities of Battleford, Estevan, Martensville and Moosomin, under the name Jimmy's Cannabis Shop.

Fire & Flower, through a wholly-owned subsidiary, will acquire all the leases, equipment, furnishings, inventory and provincial and municipal licences and permits, used to operate the four licensed locations.

The aggregate purchase price of $13 million will be paid upon the completion of certain milestones and will consist of $6.5 million in cash and $6.5 million in shares.

Trevor Fencott, CEO of Fire & Flower, stated: "The acquisition of four additional retail cannabis stores in the province of Saskatchewan is the first in Fire & Flower's aggressive acquisition strategy for 2019. In conjunction with our Open Fields wholesale distribution platform in the province, it cements our leadership position in this strategic market. Along with our existing portfolio of organic growth opportunities, the acquisition puts us in a good position to meet our growth goals for the year. We look forward to becoming trusted members of these local communities and effecting a smooth transition of existing local staff to serve consumers in the communities in which we operate."

The stores will be re-branded as Fire & Flower which will bring Fire & Flower's store count to 17 stores across Alberta, Saskatchewan and Ontario.

John Thomas, President of Prairie Sky Cannabis, added: “Fire & Flower are exemplary operators of cannabis retail stores and we are pleased that our customers will be well served by the Fire & Flower team. Fire & Flower has demonstrated its commitment to the province of Saskatchewan and we wish the company success in its pursuit as Canada's leading cannabis retailer."

The shares are trading at $1.36.

For more information, please visit the company’s website at www.fireandflower.com, contact Nathan Mison, Vice President, at 780-953-1106 or email nmison@fireandflower.com.

I’m Cassandra Bolinski for Investmentpitch Media