Fire & Flower Holdings Corp. (TSX: FAF) announced today that its strategic licensing partner American Acres Managers has completed its name change to Fire & Flower U.S. Holdings. The venture also opened the first Fire & Flower-branded store in Palm Springs, California–marking the Canadian cannabis firm’s official entry to the US market.
The company first floated the US cannabis market venture in February 2021 when it signed a licensing agreement with American Acres. The arrangement includes the license for the Fire & Flower brand, the store operating system, and the Hifyre technology platform for dispensaries in California, Arizona, and Nevada.
“As we have continued to demonstrate the value of our technology through the rapid expansion of our multi-banner retail network of over 85 stores throughout Canada, the expansion of our brand and technology into the U.S. is the next step in our evolution,” said Fire & Flower CEO Trevor Fencott in a statement. “We are pleased to now be delivering the same omni-channel, convenience-oriented cannabis retail experience to U.S. consumers and pave the way for the future of cannabis retail in the U.S as legislation continues to develop.”
Related to the licensing agreement, Fire & Flower received an option exercisable to acquire American Acres at a discount but this is subject to the US federal legalization of cannabis use or approval of the stock exchanges.
The company expects the licensing agreement to aid in expanding the Canadian cannabis brand’s footprint in the US market.
Fire & Flower Holdings last traded at $0.93 on the TSX.
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