Fire & Flower Acquires 3 Ontario Stores, CEO Touts 'Growth Plan'
The cannabis company — and its subsidiary Fire & Flower Inc. — agreed to buy Satica Cannabis in Toronto by obtaining all of the issued and outstanding shares of 2673801Ontario Inc. The store is located at 480 Bloor Street West.
The price tag includes $750,000 in cash, the business’ net working capital at the closing date, and 248,410 in FFHC common shares.
Fire & Flower also opted to purchase Busboy Ventures Inc. for $700,000 in cash, the net capital of the business at the closing date, and some 2.2 million FFHC common shares.
The Busboy Ventures deal allows the company to take over two licensed cannabis retail stores operating under the NCannabis banner. They're located at 1616 Wilson Avenue and 1542 Jane Street in North York.
The company expects to close the transaction before the end of its fiscal year pending approval from the Alcohol and Gaming Commission of Ontario, as well as the Toronto Stock Exchange’s approval.
“Our acquisition strategy is based upon valuing the four-wall retail economics of these businesses,” Fire & Flower CEO Trevor Fencott noted Thursday.
The “opening of stores is an important part of working towards our goal of positive operating EBITDA,” he added, citing a “growth plan” in Ontario and “other key Canadian markets.”
The company recently launched a retail location in Parkdale.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.