Fire & Flower Holdings (FAF.T) along with its Fire & Flower subsidiary signed on the dotted line to acquire Quad Nine Investments, the owner of ‘Blaze Cannabis’ at 717 College Street in Toronto, according to a press release.
The company’s focus right now is on expansion as they look out suitable retail locations in the province to accompany those already under construction. The Quad Nine and Blaze Cannabis acquisition will be FAF’s eighth completely owned, open and operating brick and mortar store in Ontario.
“This proposed acquisition will represent Fire & Flower’s continued strategy to further grow our omni-channel, technology-enabled retail network in the province of Ontario and across the country, both through acquisition plus organic growth. This additional store expands our operating base and brings us closer to our goal of positive operating EBITDA,” said Trevor Fencott, chief executive officer of Fire & Flower.
Fire & Flower is an adult-use cannabis retailer in the Canadian cannabis market. Their business plan includes cannabis education, retail, and their Hifyre digital platform and Spark program give consumers the chance to peruse and buy products while giving the company insights into evolving consumer behaviour.
The retail location acquisition comes with an updated Retail Operator License and Retail Store Authorization from the Alcohol and Gaming Commission of Ontario (AGCO), which issued a no-objection letter regarding the move. The deal is a mixed cash and shares deal coming in at $900,000, play working capital and inventory, and is still subject to the usual closing conditions, including the already received no-objection letter and approval from the Toronto Stock Exchange.