Fire & Flower Reports $11.1M In Q2 Revenue

Fire & Flower Holdings Corp. FAF, reported second-quarter revenue of $11.1 million on Tuesday at a gross profit margin of 36.5% for the 13 weeks ended Aug. 3, 2019 versus $9.5 million in the first quarter at a gross profit of 38.5%.

The company also disclosed $15.6 million in system sales for the period, up by 43% quarter-over-quarter.

Fire & Flower had a net comprehensive loss of $6.5 million or a net loss per share of 6 cents versus a net loss of $4.21 million and 6 cents per share in the same period of 2018.

Fire & Flower announced some operational updates for the period, such as opening 22 branded cannabis retail stores in the provinces of Saskatchewan, Ontario and Alberta, and signing agreements to purchase 13 licensed cannabis retail stores in the provinces of Alberta, Saskatchewan and British Columbia.

Click here for more information about the upcoming Benzinga Cannabis Capital Conference Oct. 22-23 in Chicago.

The company announced the closing of a bought deal private placement on June 26 of 27,188 convertible debenture units with a price of $1,000 per unit for total gross proceeds of $27.2 million.

After the close of the second quarter, the company said it signed a strategic investment with Alimentation Couche-Tard Inc., entered into asset purchase agreements with subsidiaries of Cannabis Cowboy Inc. and opened seven cannabis retail stores.

"Fire & Flower's financial and operational results for the quarter demonstrate that the Company is continuing to build the infrastructure required to support the rapid growth of our retail network and deliver on our objectives," CEO Trevor Fencott said in a statement. 

"Our strategic partnership with Alimentation Couche-Tard is transformative for the Company and the Hifyre digital retail platform continues to showcase Fire & Flower as a leading data-driven, 'retail 2.0' company."

Don’t miss out on the top cannabis stories of the day. Click here to sign up for our daily insider newsletter.