Fire & Flower Amends Terms Of Alimentation Couche-Tard Investment

Fire and Flower Holdings Corp (TSX: FAF) has amended the initial agreement put in place with Alimentation Couche-Tard (TSX: ATD.B) in relation to securities previously issued. Under the new agreement, maturities have been modified to enable Fire & Flower to access up to $19 million in cash by the end of 2020, months ahead of time.

A number of items under the amended agreement have been modified, summarized as follows:

• 26.0 million in debentures, originally maturing June 30, 2021, have been extended to June 30, 2023, with the conversion price capped at $0.90 per share, rather than $1.07. The debt can be repaid early via the issuance of shares at $0.75 per share.
• 30,634,322 series A common share purchase warrants, originally exercisable at $1.40 per share until 90 days after June 30, 2021, have been broken into three tranches.
  • 13.1 million Series A-1 warrants will now be exercisable at $0.78 per share, and will be exercised within three days of the amended agreement.
  • 10.5 million Series A-2 warrants will have an exercise price of $0.83, and an expiry of December 31, 2020.
  • 10.5 million Series A-3 warrants will be exercisable at $0.93, and an expiry of June 30, 2021.
• Series B warrants will see the exercise price decline from $1.875 to the lesser of $1.875 and the 20 day volume weighted average price of the equity. Warrants are only exercisable after January 1, 2020 and expire September 30, 2022.
• Series C warrants see their exercise price capped at $3.00, rather than the previous $6.00, and are the lesser of that figure and the 20 day volume weighted average price of the equity at time of exercise. Expiry is now defined as June 30, 2023.
• All warrants expire should Alimentation not exercise a series by its deadline.

Fire & Flower Holdings last traded at $0.95 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.

Jay Lutz

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.