Fire & Flower Holdings (TSXV:FAF) announced an agreement to acquire four additional cannabis shops in Saskatchewan for an aggregate purchase price of C$13 million.
As quoted in the press release:
The Vendor currently operates four licensed retail cannabis shops in the province of Saskatchewan in the communities of Battleford, Estevan, Martensville and Moosomin, Saskatchewan (the “Locations”) under the name Jimmy’s Cannabis Shop.
“The acquisition of four additional retail cannabis stores in the province of Saskatchewan is the first in Fire & Flower’s aggressive acquisition strategy for 2019. In conjunction with our Open Fields wholesale distribution platform in the province, it cements our leadership position in this strategic market. Along with our existing portfolio of organic growth opportunities, the acquisition puts us in a good position to meet our growth goals for the year.” shared Trevor Fencott, Chief Executive Officer of Fire & Flower.
Pursuant to the Agreement, Fire & Flower Inc., a wholly-owned subsidiary of the Company, will acquire the assets of the Vendor, including its interest in the leases, equipment, furnishings, inventory and provincial and municipal licences and permits, used to operate licensed Locations for an aggregate purchase price of C$13,000,000. The purchase price will be paid on the completion of certain milestones and will consist of C$6,500,000 in cash and C$6,500,000 in the form of common shares in the capital of the Company.
Fire & Flower anticipates closing the transaction on or about May 13, 2019. At that time, the stores will be re-branded as Fire & Flower which will bring Fire & Flower’s store count to 17 stores across Alberta, Saskatchewan and Ontario.