Fire & Flower Holdings Corp. and its wholly-owned subsidiary Hifyre™ Inc., announced the closings of its previously announced acquisitions of all issued and outstanding shares of PGED Corp., one of the world’s largest cannabis websites and content platforms, and certain digital assets of Wikileaf Technologies, an online platform for cannabis enthusiasts and consumers.
As Hifyre focuses on expanding its virtual presence and the Company’s e-commerce revenue channels, the additions of PotGuide and Wikileaf are expected to 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. As two of the most visited websites and content platforms serving the cannabis industry in North America, Hifyre intends to leverage the significant user traffic generated by these sites to convert digital visitors into cannabis and accessory purchases fulfilled by Fire & Flower’s retail network. Additionally, the acquisitions are expected to provide Hifyre with a U.S. base for technology and operations.
“Since day one, we’ve been focused on becoming the most technology-forward retailer serving the cannabis space by leveraging our vast retail expertise alongside our powerful Hifyre data and analytics platform. 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,” said Trevor Fencott, Chief Executive Officer of Fire & Flower.
With an existing base of subscribers totaling approximately 225,000, PotGuide and Wikileaf subscribers will be invited to enroll in Fire & Flower’s Spark Perks™ member program to unlock unique consumer benefits and discounts. The Spark Perks™ program, which already boasts over 310,000 subscribers allows Hifyre to develop individualized customer profiles that can deliver personalized product recommendations as well as rewards and discounts on future purchases. The program also helps the Hifyre IQ data analysis platform build a real-time understanding of cannabis consumer preferences and purchasing trends across North America to the benefit of Fire & Flower and its strategic partners.
Total consideration for the purchase of PotGuide is approximately US$8.5 million, payable by way of US$4.0 million cash consideration and 5,978,050 common shares of Fire & Flower (“Common Shares“) based upon the Company’s 10-day volume weighted average price as of August 25, 2021, the date of the definitive agreement related to the PotGuide acquisition.
Total consideration for the purchase of Wikileaf is $7.5 million, payable by way of 8,017,103 Common Shares based upon the Company’s 10-day volume weighted average price as of August 3, 2021, the date of the definitive agreement related to the Wikileaf acquisition To learn more about PotGuide and Wikileaf, visit https://potguide.com and https://wikileaf.com.
About Fire & Flower
Fire & Flower is a leading, technology-powered, adult-use cannabis retailer with more than 90 corporate-owned stores in its network. The Company leverages its wholly-owned technology development subsidiary, Hifyre, to continually advance its proprietary retail operations model while also providing additional independent high-margin revenue streams. Fire & Flower guides consumers through the complex world of cannabis through education-focused, best-in-class retailing while the Hifyre digital retail and analytics platform empowers retailers to optimize their connections with consumers. The Company’s leadership team combines extensive experience in the technology, cannabis and retail industries. To learn more about Fire & Flower, visit www.fireandflower.com.
The Hifyre Digital Retail and Analytics Platform is a proprietary ecosystem of products that includes the Spark Perks member program, Hifyre ONE retail software platform and the Hifyre IQ cannabis data and analytics platform. The Hifyre platform also supports Fire & Flower’s advanced operations and provides a competitive advantage in providing a tailored digital experience and understanding consumer behaviours in the evolving cannabis market. To learn more about Hifyre, visit www.hifyre.com.