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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.