Alimentation Exercises $10.3 Million Warrants In Fire & Flower

Fire & Flower (TSX: FAF) has seen a recent infusion of cash come into the company’s coffers. Alimentation Couche-Tard (TSX: ATD.b) this evening announced that it has increased its exposure to the company through the exercise of 13,146,469 Series A common share purchase warrants.

The exercise of the warrants increases Alimentation’s position in the company by 7.40%, bringing total ownership to 9.68% of Fire & Flower. Priced at $0.78 per unit, the exercise brought in a total of $10,254,245.80 into the firms coffers.

Following the exercise of the warrants, Alimentation has a number of securities providing exposure to Fire & Flower, including:

  • 17,208,062 common shares
  • $25,989,985.42 convertible debentures from 2019
  • $2,475,000 convertible debentures from 2020
  • 21,011,558 Series A warrants
  • 67,175,541 Series B warrants
  • 133,390,789 Series C warrants

The filing made by Alimentation also notes that should all the securities be converted to common shares, with the convertible debt converted at $0.90 per share, the company would have a 62.95% ownership interest in Fire & Flower on a partially diluted basis. On a fully diluted basis, Alimentation would have a 52.98% interest in the cannabis retailer.

Fire & Flower Holdings last traded at $0.84 on the TSX.

Information for this briefing was found via Sedar and Fire and Flower Holdings. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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