Fire & Flower Holdings (TSX: FAF) this morning announced the firms Ontario strategy as Canada’s largest province is set to allow additional store openings. The firm has officially acquired two operators in the province that have been working under the Fire & Flower label previously, and has also submitted applications for an additional eight locations within the province.
The two locations currently operating, located in Kingston and Ottawa, were previously operated under license with two retail lottery winners. Combined, the two locations have generated approximately $16.5 million in revenues to date, which will now be consolidated on the firms financial statements on a go-forward basis as a result of the acquisition. Both licenses have formally been transferred to Fire & Flower, and the company has issued 800,000 common shares as consideration. Up to an additional 933,333 common shares will be released following post-closing adjustments.
Additionally, Fire & Flower has filed applications for eight more locations across the province, the maximum allotted for a single entity in the current stage of retail development within Ontario. Design of these locations have been completed as per the company, with construction set to begin shortly. Details on where these new retail stores will be located has not yet been released. The company has indicated that it will continue to open the maximum allowable amount of locations within the province.
Finally, the company has also undertaken management changes. Nadia Vattovaz, currently CFO of the firm, has also been appointed as Senior Vice President, Operations. Meanwhile Mike Vioncek, previously Chief Operating Officer, has been named as SVP Real Estate, Construction & Compliance.
Fire & Flower Holdings last traded at $0.56 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.
