Fire & Flower Holdings Corp. FAF (OTCQX: FFLWF) confirmed Monday it has fully repaid its debt to ATB Financial.
The Toronto-based adult-use cannabis retailer reported it has repaid in full its obligations under its previously announced secured debt facilities provided by ATB Financial.
In April 2020, ATB extended two separate loan facilities to Fire & Flower on a two-year term: a revolving credit facility in the amount of $5 million and a term loan in the amount of $5 million. Prior to the repayment of the facilities, Fire & Flower had $2.3 million outstanding under the term loan facility and had not drawn on the revolving credit facility, and maintained $3.9M in restricted cash in collateral and reserve accounts held by ATB as security for repayment of interest, fees, and principal.
The outstanding debt was repaid from cash held in a restricted collateral account.
The company was permitted to repay amounts outstanding under the facilities prior to maturity without penalty.
Now, Fire & Flower’s sole long-term debt obligations amount to around $2.4 million principal amount of 8% unsecured convertible debentures outstanding to 2707031 Ontario Inc., a wholly-owned indirect subsidiary of Alimentation Couche-Tard Inc., which mature on June 30, 2023.
"Our ability to fully repay our bank debt six months early signifies the strength of our evolving asset-light business strategy, as well as, our unique opportunity to advance a number of near and long-term growth opportunities that focus on our competitive data-driven cannabis retail technology,” Trevor Fencott, CEO of Fire & Flower stated. “With almost no debt on our balance sheet, we are strongly positioned to enter the next stage of our operational growth with our key industry partnerships in order to build our global leadership position as today's most advanced technology-based cannabis retailer."
More recent news from Fire & Flower:
Fire & Flower’s shares closed Friday market session 0.41% lower at 64 cents per share.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Meet the biggest cannabis industry players and make deals that will push the industry forward.
Featuring live company presentations, insider panels, and unmatched access to networking, the Benzinga Cannabis Capital Conference is where cannabis executives and entrepreneurs meet.
Join us September 13-14, 2022 at The Palmer House in Chicago, IL.