Fire & Flower Holdings Corp. (OTCQX:FFLWF) (TSX:FAF) announced advancements in its strategic relationship with Alimentation Couche-Tard Inc. (OTCPK:ANCTF), owner of Circle K, through license agreements to use the Hifyre digital retail platform and Spark Perks member program, each proprietary to Fire & Flower's subsidiary, Hifyre Inc., at four additional cannabis stores co-located with Circle K and the proposed acquisition of two cannabis retail stores in Kingston, Ontario.
Circle K Co-Located Store License Agreements
Hifyre has entered into licensing agreements with a wholly owned subsidiary of Couche-Tard in respect of four additional co-located stores in the cities of Guelph, Hamilton, Brampton and Oshawa, Ontario. These license agreements will expand upon the success of existing Circle K co-located cannabis stores through use of the Hifyre cannabis technology platform and the Spark Perks member program. With the execution of these licensing agreements, there will be 7 Circle K co-located cannabis stores operating either under Fire & Flower corporate or technology licensing business models in the Provinces of Alberta and Ontario.
The new co-located stores subject to the licensing agreements are located at the following locations and are anticipated to open within the coming weeks.
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10010 McLaughlin Rd., Brampton, Ontario
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138 College Ave. W., Guelph, Ontario
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1311 Harmony Rd. N., Oshawa, Ontario
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648 King St. W., Hamilton, Ontario
Purchase Agreement of Two Cannabis Stores
Additionally, the company has entered into an asset purchase agreement to acquire two cannabis retail store locations in Kingston, Ontario from a wholly-owned subsidiary of Couche-Tard.
The stores are anticipated to open as Fire & Flower owned, operated and branded stores in the fourth quarter of this year and are located at:
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500 Gardiners Road, Kingston, Ontario
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1100 Princess Street, Kingston, Ontario
Pursuant to the terms of the purchase agreement, Fire & Flower will issue to an affiliate of Couche-Tard 804,548 common shares and up to an additional 804,548 common shares upon achievement of certain performance metrics. Closing of the Kingston acquisition is subject to the closing conditions set forth in the purchase agreement, including but not limited to, the receipt of regulatory approval from the Alcohol and Gaming Commission of Ontario. The Toronto Stock Exchange has conditionally approved the Kingston acquisition.
Related Party Transaction
Couche-Tard holds greater than 10% of the outstanding voting securities of the company. As such, the Kingston acquisition constitutes a related-party transaction under Multilateral Instrument 61-101 – Protection of minority security holders in special transactions.
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