Cannabis retailer Fire & Flower Holdings Corp. FAF FFLWF said Monday that it has secured $30 million in financing through a loan agreement with 2707031 Ontario Inc., an indirectly wholly-owned subsidiary of Alimentation Couche-Tard Inc.
Under the deal, ACT - which holds greater than 10% of the outstanding voting securities of Fire & Flower - agreed to loan the money to the Toronto-based company in three separate tranches of $10 million.
The loan, which is secured by the company's assets, will bear an interest at a rate of 8% per annum, payable quarterly, matures on October 1, 2022.
In addition, the agreement contemplates prepayment of amounts drawn from the net proceeds received by the company upon the exercise of series B warrants held by ACT which become exercisable by ACT as of January 1, 2022, until September 30, 2022.
Fire & Flower disclosed that it plans to use the proceeds to fund further development of the consumer digital platform as well as for general corporate purposes.
"Access to $30 million of non-dilutive debt financing is a strong show of support from our partner, Alimentation Couche-Tard," Trevor Fencott, the company's CEO said. "Through their leadership, network and expertise, we are accelerating the dynamics of the retail shopping experience and creating a consumer-centric marketplace that leverages technology and data-driven insights to deliver a personalized collection of products to consumers and reaches them wherever they are at."
More recent news from Fire & Flower:
Analyst: This Cannabis Stock Is Undervalued, Trades At 'Steep Discount To US Retail Staple Peers'
Fire & Flower Cannabis Retailer Repays Debt To ATB Financial Six Months Early
Ancillary Cannabis Company Humble & Fume's Quarterly Revenue Improves 33.7% YoY To $19.4M
Cannabis Dispensaries On The Move: Fire & Flower Advances Circle K Co-Location Pilot Program
Photo: Courtesy of Josh Appel on Unsplash
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