Article by Financial Post via Ottawa Citizen
Alimentation Couche-Tard announced Wednesday it is making a strategic investment in Edmonton-based cannabis retailer Fire & Flower.
Couche-Tard has agreed to buy a 9.9 per cent stake of Fire & Flower for about $26 million in debentures. It will also receive three series of share purchase warrants, which, if exercised in full, would increase its ownership interest to 50.1 per cent, the company said in a statement.
Fire & Flower operates or licenses 23 cannabis retail stores in Alberta, Saskatchewan and Ontario, a wholesale distribution division in Saskatchewan, and the HiFyreTM digital retail platform.
“Couche-Tard is excited to make this strategic investment in one of the fastest growing cannabis ‘pure-play’ retailers,” said Brian Hannasch, president and CEO of Couche-Tard. “This investment in Fire & Flower, with a path to a controlling stake, will enable us to leverage their leadership, network and advanced digital platform to accelerate our journey in this new and flourishing sector.”