Fire & Flower Holdings (TSXV:FAF) announced today that its wholly-owned subsidiary, Fire & Flower, has entered into an agreement to acquire all of the issued and outstanding shares of 102056025 Saskatchewan from Mera Cannabis immediately following completion of its development and receipt of all licences required to operate a cannabis retail store in Regina, Saskatchewan.
As quoted in the press release:
The Acquired Company was selected by the Saskatchewan Liquor and Gaming Authority (“SLGA”) in its 2018 province-wide lottery to operate a cannabis retail store in Regina. Fire & Flower’s store development team will assist the Acquired Company in designing and building the store in accordance with regulatory standards and Fire & Flower’s best-in-class retail experience. The Company will pay a purchase price of $1,500,000 in cash and issue 2,268,191 common shares of FFHC. The Acquisition is subject to receipt of all licences and permits required to operate a cannabis retail store, including approval by the SLGA.
Upon closing of the Acquisition, Fire & Flower and its affiliate, Open Fields Distribution, have agreed to enter into a supply agreement with Mera (the “Supply Agreement”) pursuant to which Open Fields Distribution will be the exclusive distributor of Mera’s adult-use cannabis products in the province of Saskatchewan and Fire & Flower will purchase Mera’s adult-use cannabis products for re-sale at its retail locations, in provinces where this is permitted. The Supply Agreement will be entered into upon closing of the Acquisition and will commence once Mera has received the required licensing and approvals from both Health Canada and the SLGA.
“The Acquisition of the Regina cannabis retail store licence signifies Fire & Flower’s entry into a major urban market in Saskatchewan and strengthens our position within the province,” shared Trevor Fencott, Fire & Flower’s Chief Executive Officer. “The exclusive supply agreement with Mera will further enable Fire & Flower retail stores to maintain consistent, high-quality cannabis product supply while maintaining higher margins than retailers who do not have exclusive supply agreements. We look forward to continuing to build our footprint in communities within the province of Saskatchewan.”