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Canopy Growth opens cannabis stores in Alberta

Ontario-based Canopy Growth Corp. is preparing to open its first retail cannabis stores in Alberta.

The company is to open 10 stores under its Tweed and Tokyo Smoke banners and says it has additional locations in the pipeline.

Visitors Centre_Tour_jp94Rx9A“With 10 new stores set to open and additional locations in the pipeline, we are thrilled to announce this milestone and excited to bring the Tokyo Smoke and Tweed guest experiences to Alberta for the first time,” Grant Caton, general manager Canopy Growth, said in a statement. “We’ve seen the value brick-and-mortar retail brings to our consumers – welcoming new guests to learn about cannabis and building relationships in new communities – and we’re excited to share our knowledge and industry leadership across the region.”

The stores include seven locations in Calgary and one each in Spruce Grove, Lethbridge and Edmonton. Canopy says it will create more than 100 jobs in Alberta.

The following retail locations are set to open their doors this week:

Tokyo Smoke:

  • Unit 100, 4310 MacLeod Trail SW, Calgary, AB
  • 418 16th Avenue NW, Calgary, AB
  • Unit 101, 1022 17th Avenue SW Calgary, AB
  • 3011 14th Street SW, Calgary, AB
  • Unit 204, 131 Century Crossing, Spruce Grove, AB
  • Unit 104, 1020 9 Ave SE, Calgary, AB

Tweed:

  • 8650 112 Ave NW, Calgary, AB
  • Unit 122, 425 Aviation Road NE, Calgary, AB
  • Unit 130, 333-6th Street South, Lethbridge, AB
  • 10431 82 Avenue, T6E 2A1, Edmonton, AB

Canopy is one of Canada’s largest cannabis producers and retailers. In February 2019, Couche-Tard Inc. entered into a multi-year agreement with Canopy Growth. Through this partnership, the convenience giant said it planned to “lean on Canopy Growth’s cannabis expertise and leverage its experience with other age-restricted products to focus on the safe, responsible and lawful sale of cannabis, consistent with the  legislation enacted by the federal and provincial governments.”

Quebec-based Couche-Tard is vying for a piece of the North American market and is investing heavily, including a partnership with Alberta retailer Fire & Flower. This summer, the cannabis retailer co-located two locations with Circle K stores.

Canopy Growth says its expansion into Alberta will bring its number of retail locations across Canada to a total of 50, with more planned later this year.

-With files from The Canadian Press

 

 


Fire & Flower / Circle K Co-Located Cannabis Stores - (c) 2020 Fire & Flower Holdings Corp. (CNW Group/Fire & Flower Holdings Corp.)

Fire & Flower co-locates cannabis stores with Circle K

Fire & Flower / Circle K Co-Located Cannabis Stores - (c) 2020 Fire & Flower Holdings Corp. (CNW Group/Fire & Flower Holdings Corp.)

Fire & Flower / Circle K co-located cannabis stores

Fire & Flower Holdings Corp. is opening two cannabis retail stores adjacent to Circle K locations in the province of Alberta.

In a release, Fire & Flower says it expects “to benefit from high traffic Circle K locations to deliver an unprecedented level of convenience to cannabis customers, maximizing the benefit of the Spark Perks program and Spark Fastlane online ordering services at conveniently located stores.”

In July 2019, Couche-Tard announced it would make a strategic investment in Fire & Flower, providing the Canadian cannabis retailer with additional capital to further accelerate its expansion strategy. Couche-Tard invested approximately $26 million in the form of unsecured convertible debentures to obtain a 9.9% ownership interest in Fire & Flower on a fully diluted basis.

READ: Couche-Tard closes cannabis retailer deal

“Through this strategic investment, we reinforce our intention to become a key player in North America’s cannabis industry,” Brian Hannasch, president and CEO of Couche-Tard, said at the time. “We are excited to see what we can achieve together with Fire & Flower, as we further expand in Canada and look to leverage our presence in the United States and beyond.”

At the time, Fire and Flower has 23 locations and today, with the new openings, it has 51 stores, mostly in Alberta, Saskatchewan and Manitoba, but also in Ontario and Yukon.

The two new stores in Calgary and Grande Prairie are the duo’s first co-located retail stores, but they are looking at “additional opportunities to co-locate cannabis retail st

Fire & Flower / Circle K Co-Located Cannabis Stores - (c) 2020 Fire & Flower Holdings Corp. (CNW Group/Fire & Flower Holdings Corp.)

Fire & Flower / Circle K Co-Located Cannabis Stores – (c) 2020 Fire & Flower Holdings Corp. (CNW Group/Fire & Flower Holdings Corp.)

ores in the future.”

The co-located stores will be owned and operated by Fire & Flower and, in accordance with applicable regulations, are officially separate from the adjacent Circle K stores.

The Grande Prairie store is opening this week and the Calgary store is to open the week of July 13, 2020.

“As we continue to build our relationship with Alimentation Couche-Tard, Fire & Flower is very pleased to be embarking on this initiative together,” Trevor Fencott, CEO of Fire & Flower, said in a statement. “We believe that combining convenient pickup locations with digital engagement offered by the Hifyre platform and Spark Perks program presents our customers with a differentiated value proposition in an increasingly competitive cannabis retail market. This approach to innovation in omni-channel and convenience-oriented cannabis retail differentiates Fire & Flower and positions us well to capitalize on both domestic and international opportunities.”

 

Through its strategic investment with Alimentation Couche-Tard Inc., Fire & Flower has set its sights on the global expansion as new cannabis markets emerge.


Fire & Flower Deliver - (c) 2020 Fire & Flower Holdings Corp. (CNW Group/Fire & Flower Holdings Corp.)

Fire & Flower powers up for home delivery in the GTA

Fire & Flower Deliver - (c) 2020 Fire & Flower Holdings Corp. (CNW Group/Fire & Flower Holdings Corp.)

Fire & Flower Holdings is now offering home delivery in the greater Toronto area.

Fire & Flower, an independent adult-use cannabis retailer that owns (directly or indirectly) cannabis retail store licences in Alberta, Saskatchewan, Manitoba and Ontario and the Yukon.

Through its strategic investment with Alimentation Couche-Tard, the Canadian company has set its sights on the global expansion as new cannabis markets emerge.

In addition to the curbside pickup and home delivery offered in Ottawa and Kingston, the technology powering home delivery in Toronto is enabled through the Hifyre Digital Retail and Analytics Platform. Customers can order via www.fireandflower.com for free next day home delivery on orders over $50.00.

“Fire & Flower welcomes this opportunity to demonstrate how private cannabis retail can showcase fully-compliant best-in-class services such as e-commerce, home delivery and curbside pickup to our customers. It is essential that private retail is able to compete on a level playing field with government-run e-commerce and home delivery cannabis services,” CEO Trevor Fencott said in a release. “Through the Hifyre Digital Retail and Analytics platform, we are well positioned should other methods of servicing customers open across Canadian provinces.”

Under the current shutdown of non-essential businesses, cannabis retail stores are permitted to operate through online, curbside pickup and home delivery services for the duration of the emergency order on business closures in relation to COVID-19.


Fire & Flower Retail Stores (C) 2019 Fire & Flower Inc. (CNW Group/Fire & Flower Holdings Corp.)

Couche-Tard makes strategic cannabis move with investment in Fire & Flower

Fire & Flower Retail Stores (C) 2019 Fire & Flower Inc. (CNW Group/Fire & Flower Holdings Corp.)

Fire & Flower retail store. 

Convenience store chain operator Alimentation Couche-Tard Inc. has made a strategic investment in Fire & Flower Holdings Corp., which will use the funds to develop its Hifyre digital retail platform and expand its network of cannabis retail stores.

Couche-Tard’s initial investment in the Edmonton-based company, announced Wednesday, will give it rights to 9.9% of Fire & Flower’s equity and the potential to increase its stake to 50.1% for a total of $380 million.

“Couche-Tard is excited to make this strategic investment in one of the fastest growing cannabis ‘pure-play’ retailers,” the Quebec-based retailer’s president and CEO Brian Hannasch said in a statement.

“This investment in Fire & Flower, with a path to a controlling stake, will enable us to leverage their leadership, network and advanced digital platform to accelerate our journey in this new and flourishing sector.”

Fire & Flower currently operates or licenses 23 cannabis retail stores in Alberta, Saskatchewan and Ontario and a wholesale distribution division in Saskatchewan.

“This strategic investment by Couche-Tard, one of the world’s largest retailers, is transformative for Fire & Flower,” CEO Trevor Fencott said in a statement.

He added that Couche-Tard’s leadership team and international footprint in major markets such as the United States, Mexico and Europe “provide us with outstanding opportunities for aggressive growth.”

Alimentation Couche-Tard is one of North America’s largest operators of convenience stores and gas bars, primarily under the Circle K global brand and under the Couche-Tard banner in its home province of Quebec.

The companies say an indirect subsidiary of Couche-Tard will initially buy about $26 million of convertible debt securities that can be converted to 24.3 million common shares at a price of $1.07 each, representing 9.9% of equity.

At the same time, Couche-Tard will receive three series of warrants allowing it to purchase more shares. It will also get the right to top up its investment to maintain its ownership percentage.

Fire & Flower’s stock is currently listed on the TSX Venture Exchange but it has received conditional approval to list its shares on the Toronto Stock Exchange concurrent with the transaction.

Fire & Flower’s stock price jumped 20% to a two-month high at $1.37 a share following the announcement, while Couche-Tard stock was essentially flat at $80.73 in early trading Wednesday.