Fire & Flower Holdings (TSX:FAF) credits its quarterly growth to a retail expansion across Canada.
As part of its latest quarterly results, shared on Tuesday (October 1), the Alberta-based retail company states that its growth over the period was due to recent agreements to acquire 13 more licensed marijuana shops in British Columbia, Alberta and Saskatchewan.
Fire & Flower CFO Nadia Vattovaz told the Investing News Network (INN) the company is aggressively adding to its operations in Western Canada. The retailer has a substantial presence in Alberta.
Tuesday’s results brought a slight drop for Fire & Flower. After its share price opened at C$1.17, the company finished the trading session at C$1.16, a 2.52 percent decline for the day.
Fire & Flower projects that, by Q4 2021, it will have opened 135 retail locations across all of its addressable markets.
Along with British Columbia and Saskatchewan, Fire & Flower plans to further its reach into Manitoba. It aims to have a total of 45 stores opened by the end of its fiscal year in January 2020, said Vattovaz.
During the latest quarter, the Alberta-based cannabis company raked in C$11.1 million in revenue, an almost 17 percent increase in from the previous period’s revenue of C$9.5 million.
Net losses were reported at C$6.5 million for this past quarter.
Fire & Flower also mentioned a post-quarter investment from Canadian convenience store operator Alimentation Couche-Tard (TSX:ATD.A).
In August, the company issued an 8 percent unsecured convertible debenture to a subsidiary of the Quebec-based multinational company at a value of about C$26 million, representing an almost 10 percent ownership interest in the cannabis firm on a pro forma fully diluted basis.
The investment will result in a minimum of C$380 million in capital for Fire & Flower’s global expansion. The company plans on leveraging Couche-Tard’s international infrastructure for opportunities abroad.
Couche-Tard currently boasts a network of 9,792 convenience stores throughout North America, across 48 states in the US and 10 provinces in Canada.
Though it is not currently possible to sell cannabis products at convenience stores in Canada, Vattovaz told INN the company is in the early stages of leveraging Couche-Tard’s retail presence in the US.
“There’s a compelling offering there, potentially, where we can partner with Couche-Tard and our brand on … the type of products that we may want to sell through US,” she said, adding that the company’s movement into the country will come down to legal permissibility, since cannabis is still illegal at the federal level in the US.
Don’t forget to follow us @INN_Cannabis for real-time news updates!
Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Mergers and acquisitions (M&A) in cannabis space have helped boost the industry to new levels.
Strategic sale of non-core assets by Lobe adds non-dilutive capital and shareholder value
Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce, further to its press release dated February 23, 2021, that it has completed the sale to Ionic Brands Corp. (“Ionic Brands”) of Lobe’s non-core cannabis assets relating to Washington-based Cowlitz County Cannabis Cultivation Inc. (“Cowlitz”) held by Lobe’s subsidiary vendor, Green Star Biosciences Inc. (the “Transaction”).
Seattle Area Grocery Chain Metropolitan Market to Begin Carrying KOIOS and Fit Soda on March 22, 2021
Adding to its existing presence on the west coast of the United States, all five KOIOS™ flavours and all four Fit Soda™ flavours will be carried in Metropolitan Market stores beginning on Monday, March 22, 2021. Serving the Seattle-Tacoma area (population 3.87 million), Metropolitan Market is one of five chains under its parent firm Good Food Holdings, which has a total of 51 stores in California, Oregon, and Washington State.
Koios Beverage Corp. (CSE: KBEV; OTC: KBEVF) (the “Company” or “Koios”) is pleased to announce that beginning on Monday, March 22, 2021, Koios’ entire line of canned beverage products will be sold at all locations of Metropolitan Market, an urban format supermarket chain in the Seattle-Tacoma area of Washington State. In Q1 2021, the Company announced multiple placements of its beverage products with regional grocers in markets on the west coast of the United States including Market of Choice in Oregon Jensen’s in Southern California and major natural grocery chain Sprouts Farmers Market which has a substantial west coast presence with over one third of its locations (360+ stores across 23 states) in California as well as Washington State 1 . The Company has also recently announced other developments relating to its expansion efforts being undertaken in 2021 such as an in-house beverage canning facility and distribution agreements with regional and national wholesale partners.
Pineapple Express Delivery Partners with CannTrust to Offer Same-Day and Next-Day Delivery for estoraTM Medical Cannabis Patients in Ontario
Ensuring estoraTMpatients have seamless access to their high-quality medical cannabis products
World-Class Extractions Inc. (CSE:PUMP)(FRA:WCF)(OTCQB:WCEXF) (the “Company” or “World-Class”) is pleased to announce that its subsidiary Pineapple Express Delivery Inc. (“Pineapple Express Delivery” or “PED”), a leading logistics technology company offering compliant and secure delivery of controlled substances and regulated products, has partnered with CannTrust Inc. to bring same-day and next-day delivery to estoraTM medical cannabis patients in Ontario
American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.
Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.