Fire & Flower Eyes Acquiring Wikileaf Assets For $7.5 Million, Bares Online Dispensary Strategy
Fire & Flower Holdings Corp. (TSX: FAF) and its wholly-owned subsidiary Hifyre Inc. announced today the definitive asset purchase agreement to acquire certain assets from subsidiaries of online cannabis platform Wikileaf Technologies Inc. (CSE: WIKI). The company said this move is part of its digital strategy to enhance its online retail platform.
The total consideration for the purchase is reported to be $7.5 million payable in Fire & Flower common shares. The transaction will see Hifyre acquire certain digital assets and intellectual property rights of Wikileaf.
Hifyre also bared its plans to turn the Wikileaf website into an online cannabis dispensary powered by the same e-commerce platform that supports Fire & Flower’s retail network. A key aspect of the firm’s digital strategy will also include creating white-labelled online dispensaries powered by the same e-commerce platform for expansion purposes, with the white label service to be available in both Canada and the US.
The transaction is expected to close during the company’s third fiscal quarter, subject to customary closing conditions, Wikileaf shareholders’ approval, and regulatory approvals.
In June 2021, Fire & Flower reported $44.1 million in revenues along with a net loss of $61.6 million.
Fire & Flower Holdings last traded at $0.92 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.