Fire & Flower Ramps Up Online Presence With Pot Guide & Wikileaf Acquisitions, Virtual Cannabis Dispensaries Coming Soon

The tech-focused cannabis retailer Fire & Flower Holdings Corp. FAF FFLWF announced Wednesday that its wholly-owned subsidiary Hifyre Inc. has wrapped up two acquisitions as part of its expanded digital strategy to develop virtual online dispensaries.

The Toronto-based company took over a cannabis website and content platform GED Corp., also known as PotGuide, and certain digital assets of Wikileaf Technologies, an online platform for cannabis enthusiasts and consumers.

Fire & Flower paid roughly $8.5 million for Pot Guide by issuing some 5.98 million of its common shares and paying $4 million in cash.

The consideration for the acquisition of Wikileaf was $7.5 million, which Fire & Flower paid by issuing some 8 million of its common shares.

The company said the additions of PotGuide and Wikileaf will enhance Hifyre’s asset-light approach and provide a scalable entry point to capture new customers and Spark Perks members in both Canada and the U.S.

Moreover, PotGuide and Wikileaf combined subscriber base of roughly 225,000 will significantly bolster The Spark Perks program’s current base of more than 310,000 subscribers.

“Through our expanded digital strategy and strategic acquisitions, we are building an asset-light business model that, in concert with our existing physical retail network, is expected to deliver high-margin opportunities, recurring revenue and further engrain customer loyalty with Fire & Flower,” Trevor Fencott, CEO of Fire & Flower commented.

According to its latest earnings report, Hifyre Digital Retail and Analytics Platform generated CA$3.7 million in revenue for the second quarter of 2021, representing a 293% year-over-year growth.

Price Action

Fire & Flower’s shares traded 0.19% higher at $0.7239 per share after market close on Tuesday.

Photo: Courtesy of Andrea Piacquadio from Pexels

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Posted In: CannabisNewsPenny StocksRetail SalesMarketsHifyreonline storePotguideTrevor FencottWikileaf Technologies
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