/NOT FOR DISSEMINATION IN THE UNITED
STATES OR FOR DISTRIBUTION TO UNITED
STATES WIRE SERVICES/
Ontario expansion strategy
begins with entry into the largest urban market in Canada with the 378 Yonge Street
location
TORONTO, Aug. 27, 2020 /CNW/ - Fire & Flower Holdings
Corp. (TSX: FAF) (OTCQX: FFLWF) and its wholly-owned
subsidiary Fire & Flower Inc. (collectively, "FFHC", "Fire
& Flower" or the "Company") today announced that it has entered
into a definitive agreement to acquire all of the issued and
outstanding shares of 11522302 Canada Inc. (the "Vendor"), which
owns and operates a licensed cannabis retail store at 378 Yonge
Street, Toronto, Ontario (the
"Acquisition").
The first Fire & Flower store in downtown Toronto is located at the high-traffic
intersection of Yonge Street. and Gerrard
Street, with close proximity to Yonge-Dundas square. This
location will establish the Fire & Flower brand in the largest
urban market in Canada.
"As we begin to execute on our Ontario expansion strategy, Fire & Flower
is thrilled to be acquiring this flagship location on Toronto's high traffic Yonge Street," shared Trevor Fencott, Chief Executive Officer of Fire
& Flower. "This location demonstrates our strategy of focusing
on retail locations in the province of Ontario that will maximize revenue and margin
opportunities for our business."
The Vendor is a wholly-owned subsidiary of Meta Growth Corp. and
the Acquisition includes a current Retail Operator License and
Retail Store Authorization from the Alcohol and Gaming Commission
of Ontario (the "AGCO").
The total purchase price in connection with the Acquisition is
$750,000, plus the net working
capital of the business (including inventory) at the date of
closing. The Acquisition is subject to customary closing
conditions, including the receipt of a no-objection letter from the
AGCO which has already been received. It is anticipated the
transaction will close on or about August
31, 2020, subject to all parties satisfying the remaining
conditions.
The location will continue to remain open until such time as the
store has fully transitioned to the Fire & Flower brand. The
date and time of grand re-opening of the 378 Yonge Street store
under the Fire & Flower brand will be announced on the
Company's website at http://fireandflower.com/.
About Fire & Flower
Fire & Flower is a leading purpose-built, independent
adult-use cannabis retailer poised to capture significant
Canadian market share. The Company guides consumers through the
complex world of cannabis through education-focused, best-in-class
retailing while the HifyreTM digital platform and
SparkTM program connect cannabis consumers with the
latest cannabis products and deliver cutting edge insights into
evolving consumer behaviours. The Company's leadership team
combines extensive experience in the cannabis industry with strong
capabilities in retail operations.
Fire & Flower Holdings Corp. owns all issued and outstanding
shares in Fire & Flower Inc., a licensed cannabis retailer that
owns cannabis retail store licences in the provinces of
Alberta, Saskatchewan, Manitoba and Ontario and the Yukon territory.
Through its strategic investment with Alimentation Couche-Tard
Inc., the Company has set its sights on the global expansion as new
cannabis markets emerge.
More information on Fire & Flower can be found at
www.fireandflower.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
This news release contains certain
forward-looking information within the meaning of applicable
Canadian securities laws ("forward-looking statements"). All
statements other than statements of present or historical fact are
forward-looking statements. Forward-looking statements are often,
but not always, identified by the use of words such as
"anticipate", "achieve", "could", "believe", "plan", "intend",
"objective", "continuous", "ongoing", "estimate", "outlook",
"expect", "project" and similar words, including negatives thereof,
suggesting future outcomes or that certain events or conditions
"may" or "will" occur. These statements are only
predictions.
Forward-looking statements are based on the opinions and
estimates of management of Fire & Flower at the
date the statements are made based on information then available to
the Fire & Flower. Various factors and
assumptions are applied in drawing conclusions or making the
forecasts or projections set out in forward-looking statements,
including with respect to the closing of the Acquisition.
Forward-looking statements are subject to and involve a number of
known and unknown, variables, risks and uncertainties, many of
which are beyond the control of Fire & Flower,
which may cause Fire & Flower's actual
performance and results to differ materially from any projections
of future performance or results expressed or implied by such
forward-looking statements. Such factors, among other
things, include: final regulatory and
other approvals or consents;
fluctuations in general macroeconomic conditions;
fluctuations in securities markets; the impact of the COVID-19
pandemic; the ability of the Company
to successfully achieve its business objectives and political
and social uncertainties.
No assurance can be given that the expectations reflected in
forward-looking statements will prove to be correct. Although
the forward-looking statements contained in this news release are
based upon what management of the Company believes, or believed at
the time, to be reasonable assumptions, the Company cannot assure
shareholders that actual results will be consistent with such
forward-looking statements, as there may be other factors that
cause results not to be as anticipated, estimated or intended.
Readers should not place undue reliance on the forward-looking
statements and information contained in this news release.
Additional information regarding risks and uncertainties relating
to the Company's business are contained under the heading "Risk
Factors" in the Company's annual information form dated
April 29, 2020 and the heading "Risks
and Uncertainties" in the management discussion and analysis for
the thirteen weeks ended May 2, 2020
filed on its issuer profile on SEDAR at www.sedar.com.
No stock exchange, securities commission or other regulatory
authority has approved or disapproved the information contained
herein.
Fire & Flower assumes no obligation to publicly
update or revise forward-looking statements to reflect new
information, future events or otherwise, except as expressly
required by applicable law.
SOURCE Fire & Flower Holdings Corp.