Fire & Flower Sees Couche-Tard Exercise $37.8 Million Worth of Warrants
Fire & Flower Holdings (TSX: FAF) has seen Alimentation Couche-Tard (TSX: ATD.b) up its stake in the firm. As previously announced, the convenience store retailer has exercised certain warrants it held in the company, increasing its stake to 35.32%.
The transaction specifically saw Couche-Tard exercise 8.3 million Series B warrants it held in the company, pursuant to an arrangement it entered into with the cannabis retailer several years ago. The exercise brought in total gross proceeds of $37.8 million to Fire & Flower, with 6.7 million warrants exercised at $4.51 per share, and 1.6 million warrants exercised at $4.77 per share.
Much of those proceeds however were simply circled back to Couche-Tard. A significant portion of the proceeds were utilized to pay off a loan agreement between the two firms, whereby Couche-Tard had lent the company $20.0 million under a short term loan agreement entered into in December at a rate of 8.0% per annum.
The remaining portion of proceeds from the exercise of warrants is to be used for working capital, general corporate purposes, and for further strategic initiatives.
Fire & Flower Holdings last traded at $3.56 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
