Fire & Flower Repays $2.3 Million Outstanding Debt, Retires $10 Million Debt Facilities

Fire & Flower Holdings Corp. (TSX: FAF) seems to be cleaning up its balance sheet. The cannabis firm announced today that it has repaid in full the outstanding secured debt facilities provided by ATB Financial.

The bank in 2020 had extended a $5 million revolving credit facility and a $5 million term loan to the company. Out of these, Fire & Flower had $2.3 million outstanding from the term loan and had not drawn from the revolving credit facility.

The firm said that it was able to pay the $2.3 million outstanding from the restricted cash in collateral, which was [egged at $3.9 million prior to the repayment.

“Our ability to fully repay our bank debt six months early signifies the strength of our evolving asset-light business strategy, as well as, our unique opportunity to advance a number of near and long-term growth opportunities that focus on our competitive data-driven cannabis retail technology,” said Fire & Flower CEO Trevor Fencott in a statement.

Following the retirement of the ATB Financial debt facilities, the firm’s only long-term obligation is with 2707031 Ontario Inc., a wholly-owned indirect subsidiary of Alimentation Couche-Tard Inc., which is worth approximately $2.4 million and is due in June 2023. In March 2021, the firm announced that it has exercised its right to convert $23.6 million of the then-principal amount to equity.

Fire & Flower Holdings last traded at $0.79 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.

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