Friday, September 12, 2025

Fire And Flower Forces $20 Million Debt Conversion

Fire And Flower Holdings (TSX: FAF) is looking to strengthen its balance sheet, with the firm announcing this morning that it has forced the conversion of certain convertible debentures due July 31, 2020 following an amendment to the terms. The company has positioned the move as being one that significantly increases the balance sheet of the firm.

As of the latest financial report from Fire and Flower, a total principal amount of $20.0 million remained outstanding on the July debentures, which bares an interest rate of 8.0% per annum.

Following the consent of the two debenture holders, the terms of the debenture have been further amended and modified to allow for the forced conversion of the debt if the equity is trading above $0.70. Concurrent with the amendments, the company has provided notice of the intent to force the conversion of the debt into equity.

As a result of the forced conversion, the firm expects to issue 12,173,912 common shares of the company, which is subject to adjustment based on interest due and payable on the debt.

Excluding the debentures that have now seen their conversion forced, the company is believed to have approximately $53.1 million in convertible debentures remaining on its balance sheet. The majority of which, totaling $27.168 million, is due on June 26, 2020.

Fire and Flower had a cash position of $42.8 million as of November 2, 2019.

Fire and Flower last traded at $0.86 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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