Alimentation Couche-Tard is increasing its ownership of Canadian cannabis retailer Fire & Flower Holdings Corp. through the exercise of warrants.
Fire & Flower Holdings Corp., a cannabis consumer retail and technology platform, announced today that 2707031 Ontario Inc., an indirect wholly-owned subsidiary of Alimentation Couche-Tard Inc., has confirmed its intention to exercise warrants to acquire 8,288,067 common shares of Fire & Flower.
In turn, ACT's ownership of common shares of Fire & Flower will more than double to 35.32% from 14.49%.
In July 2019, Couche-Tard announced its strategic investment in Fire & Flower with a mandate to provide 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.
Since then, Fire & Flower has opened more than 100 corporate stores in its network. The multi-banner cannabis retail operator owns and operates the Fire & Flower, Friendly Stranger, Happy Dayz and Hotbox brands. Fire & Flower Holdings Corp. owns all issued and outstanding shares in Fire & Flower Inc. and Friendly Stranger Holdings Corp., licensed cannabis retailers that own and operate cannabis retail stores in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and the Yukon territory.