/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO
UNITED STATES WIRE SERVICES/
Warrant exercise by one of the world's largest
convenience retailers brings ownership stake to more than
35%
TORONTO, April 29,
2022 /CNW/ - Fire & Flower Holdings Corp.
("Fire & Flower" or the "Company") (TSX: FAF)
(OTCQX: FFLWF), a leading cannabis consumer retail and technology
platform announced today that, further to a notice of intent to
exercise delivered on April 20, 2022,
2707031 Ontario Inc., an indirect wholly-owned subsidiary of
Alimentation Couche-Tard Inc. (collectively "ACT"), has
exercised warrants (the "Series B Warrants") effective
April 28, 2022, to acquire
8,288,067 common shares of Fire & Flower (the
"Shares") pursuant to the terms of a Second Amended and
Restated Warrant Certificate dated January
18, 2022 (the "Series B Warrant Certificate")
.
The Company received gross proceeds of $37,794,556 (the "Proceeds") from the
exercise of the Series B Warrants, comprising (a) 6,717,554 Series
B Warrants exercised at a price of $4.5103, representing the 20-day volume-weighted
average price of the common shares of the Company and (b) 1,580,513
Series B Warrants exercised at a price of $4.7732, in each case, in accordance with the
terms of the Series B Warrant Certificate.
Pursuant to the terms of the loan agreement dated December 13, 2021 between the Company and ACT
(the "Loan Agreement"), a portion of the Proceeds was used
to repay all amounts owing to ACT pursuant to the Loan Agreement.
There are no further amounts owing under the Loan Agreement. The
remaining Proceeds from the exercise of the Series B Warrants will
be used for general corporate purposes, working capital needs and
to fund further strategic initiatives of the Company.
"We are excited to further strengthen our relationship with
Alimentation Couche-Tard, whose unwavering support has enabled Fire
& Flower to execute on our technology-focused differentiation
strategy and to ultimately achieve our vision to Deliver Cannabis
to the World," remarked Trevor
Fencott, Chief Executive Officer of Fire & Flower.
Following the exercise of the Series B Warrants, ACT's ownership
of common shares of Fire & Flower increased by approximately
14.48% to approximately 35.32%. ACT also holds $2,407,415 principal amount of 8.0% convertible
debentures and 17,796,284 share purchase warrants (the "Series C
Warrants"). The Series C Warrants are exercisable between
October 1, 2022 and June 30, 2023 at an exercise price equal to the
lesser of (A) $30.00; and (B) 125% of
the 20-day VWAP of the Fire & Flower common shares on the last
trading day prior to the date on which the Series C Warrants are
exercised. 4,457,206 of the Series C Warrants, which were issued
pursuant to the exercise of top-up rights by ACT, are also subject
to a minimum exercise price of $4.7732. The Company has also granted to
ACT certain participation and top-up rights pursuant to an Amended
and Restated Investor Rights Agreement dated September 16, 2020 to receive additional
securities of Fire & Flower which, if exercised, entitle ACT to
a minimum aggregate direct and indirect ownership of 50.1% of the
issued and outstanding common shares of Fire & Flower on a
fully diluted basis.
About Fire & Flower
Fire & Flower is a leading, technology-powered, adult-use
cannabis retailer with more than 100 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, logistics, cannabis and
retail industries.
Through the strategic investment of Alimentation Couche-Tard
Inc. (owner of Circle K convenience stores), the Company has set
its sights on global expansion as new cannabis markets emerge and
is poised to expand into the United
States when permitted through its strategic licensing
agreement with Fire & Flower U.S. Holdings upon the occurrence
of certain changes to the cannabis regulatory regime.
Fire & Flower is a multi-banner cannabis retail operator
that owns and operates the Fire & Flower, Friendly Stranger,
Happy Dayz and Hotbox brands. Fire & Flower Holdings Corp. owns
all issued and outstanding shares in Fire & Flower Inc. and
Friendly Stranger Holdings Corp., licensed cannabis retailers that
own and operate cannabis retail stores in the provinces of
British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and the Yukon territory.
To learn more about Fire & Flower,
visit www.fireandflower.com.
About Alimentation Couche-Tard
Inc.
Couche-Tard is a global leader in convenience and fuel retail,
operating in 26 countries and territories, with more than 14,100
stores, of which approximately 10,800 offer road transportation
fuel. With its well-known Couche-Tard and Circle K banners, it is
one of the largest independent convenience store operator
in the United States and it is a leader in the
convenience store industry and road transportation fuel retail
in Canada, Scandinavia, the Baltics, as well as
in Ireland. It also has an important presence
in Poland and Hong Kong SAR. Approximately 124,000 people
are employed throughout its network.
For more information on Alimentation Couche-Tard Inc. or to
consult its quarterly Consolidated Financial Statements and
Management Discussion and Analysis, please
visit: https://corpo.couche‑tard.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. 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: 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 26, 2022 filed on its issuer
profile on SEDAR at www.sedar.com . The forward-looking statements
contained in this press release are made as of the date of this
press release, and the Company does not undertake to update any
forward-looking statements that are contained or referenced herein,
except in accordance with applicable securities laws.
No stock exchange, securities commission or other regulatory
authority has approved or disapproved the information contained
herein.
SOURCE Fire & Flower Holdings Corp.