Fire & Flower Reports Q3 Net Income Of $10.2M
Fire & Flower Holdings Corp. (TSX:FAF) (OTC:FFLWF) reported Tuesday third-quarter revenue of $13.7 million at a gross profit of 34.7%, compared to revenue of $11.1 million at a gross profit of 36.5% in the previous quarter.
The company also posted a net comprehensive income of $10.2 million, or 7 cents per share on a fully diluted basis, versus a net loss of $22.55 million, or a loss of 30 cents per basic and diluted share in the same quarter of 2018.
Net income for the quarter was due to gains achieved in other income on the revaluation of the derivative liabilities connected with the convertible debentures.
The company also noted some important quarterly milestones such as operating 30 cannabis retail stores across four provinces, closing on the strategic investment with Alimentation Couche-Tard Inc., finalizing asset purchase agreements with subsidiaries of Cannabis Cowboy Inc. related to eight cannabis retail stores.
"With the emerging Canadian cannabis industry facing headwinds, Fire & Flower continues to deliver a track record of growth and meeting our objectives" said Trevor Fencott, Fire & Flower's CEO. "We anticipate meeting our goal of 45 open and operating stores by the end of our fiscal year. Our industry-leading Spark Perks members program ensures that our customers are engaged with the Fire & Flower brand as their cannabis retailer of choice."
Fire & Flower's stock closed Monday’s session at 69 cents per share.
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