Fire & Flower Holdings Corp. has announced it has entered into an agreement in which the company will acquire certain assets of Prairie Sky Cannabis Inc.
The Vendor currently operates four licensed retail cannabis shops in Saskatchewan, including one in Estevan, under the name of Jimmy鈥檚 Cannabis Shop. Their other stores are in Battleford, Martensville and Moosomin.
鈥淭he acquisition of four additional retail cannabis stores in the province of Saskatchewan is the first in Fire & Flower鈥檚 aggressive acquisition strategy for 2019,鈥� said Trevor Fencott, CEO of Fire and Flower. 鈥淚n conjunction with our Open Fields wholesale distribution platform in the province, it cements our leadership position in this strategic market.
鈥淎long with our existing portfolio of organic growth opportunities, the acquisition puts us in a good position to meet our growth goals for the year.
鈥淲e look forward to becoming trusted members of these local communities and effecting a smooth transition of existing local staff to serve consumers in the communities in which we operate.鈥�
Following the closing of the transaction, Fire & Flower anticipates that the acquisition of the four Jimmy鈥檚 Cannabis Shop locations will:
鈥row the Fire & Flower brand presence across the province of Saskatchewan;
鈥trengthen Fire & Flower鈥檚 Open Fields Distribution network in the province;
鈥ncrease Fire & Flower鈥檚 geographic ability to serve the province through its bricks and mortar, e-commerce, delivery and click and collect sales channels; and
鈥rovide additional insights into consumer behaviours and preferences through Fire & Flower鈥檚 proprietary Hifytre digital retail platform.
鈥淔ire & Flower are exemplary operators of cannabis retail stores and we are pleased that our customers will be well served by the Fire & Flower team,鈥� said John Thomas, president of Prairie Sky Cannabis Inc. 鈥淔ire & Flower has demonstrated its commitment to the province of Saskatchewan and we wish the company success in its pursuit as Canada鈥檚 leading cannabis retailer.鈥�
Pursuant to the agreement, Fire & Flower Inc. will acquire assets of Prairie Sky Cannabis, including its interest in the leases, equipment, furnishings, inventory and provincial and municipal licences and permits, used to operate licensed locations for an aggregate purchase price of $13 million. The purchase price will be paid on the completion of certain milestones and will consist of $6.5 million in cash and $6.5 million in the form of common shares in the capital of the company.
Completion of the proposed transaction is subject to approval of the TSX Venture Exchange. Fire & Flower anticipates closing the transaction on or about May 13. At that time, the stores will be re-branded as Fire & Flower, which will bring Fire & Flower鈥檚 store count to 17 stores across Alberta, Saskatchewan and Ontario.
