Fire & Flower Holdings Corp. (TSX: FAF) and its wholly-owned subsidiary Hifyre Inc. announced today the proposed acquisition of PGED Corp., the operator of PotGuide.com. This announcement comes in less than a month after the cannabis firm shared the $7.5 million purchase agreement to acquire another online cannabis platform Wikileaf Technologies Inc. (CSE: WIKI).
The total consideration for the purchase is reported to be US$8.5 million payable in US$4.0 million cash and 5,978,050 Fire & Flower common shares. The transaction is expected to provide Hifyre with a U.S. base for technology and operations.
“Now that we are strategically acquiring two of the most visited cannabis online websites, PotGuide and Wikileaf, we have established Fire & Flower and Hifyre as leading global players in digital cannabis traffic and believe we can offer even greater value to these high-demand properties,” said Fire & Flower CEO Trevor Fencott.
The move is still part of the firm’s digital strategy to create white-labelled online dispensaries and convert the traffic into cannabis and accessory purchases. Both PotGuide and Wikileaf bring an existing customer base of approximately 225,000 cannabis consumers.
The transaction is expected to close during the company’s third fiscal quarter, subject to customary closing conditions and regulatory approvals.
Earlier this month, the cannabis operator made its official entry into the US cannabis market with its first-ever branded store in California.
Fire & Flower Holdings last traded at $0.90 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. 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.