Fire & Flower Holdings Corp. and its wholly-owned subsidiary Fire & Flower Inc. 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,” said 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/.
Fire & Flower is a leading purpose-built, independent adult-use cannabis retailer poised to capture significant Canadian market share.