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Fire & Flower’s (TSX:FAF) U.S. affiliate closes US$5M convertible debenture financing

Cannabis
TSX:FAF
25 August 2022 11:45 (EDT)

Source: Fire & Flower Holdings.

Fire & Flower’s (FAF) U.S. affiliate has closed a US$5M non-brokered private placement.

The financing involves unsecured convertible debentures to existing shareholders of Fire & Flower U.S. Holdings.

The debentures bear interest at 8 per cent per year and mature on August 2, 2024. They may be converted into Fire & Flower U.S. Holdings shares at a minimum of US$1.00 per share prior to the maturity date.

If Fire & Flower Holdings acquires the affiliate under its existing purchase option, the debentures will automatically convert into common shares.

The affiliate will use the funds for acquisitions, capital expenditures and general working capital. It intends to expand into additional states, including Colorado, under the Fire & Flower brand and Hifyre platform in Q4 2022.

“Our team is excited to expedite the deployment of resources to expand both the Fire & Flower brand and the Hifyre platform to additional states, improving overall customer experience,” stated Joe Gullia, National Director of Retail.

Fire & Flower U.S. Holdings owns and operates cannabis retail assets across three states. Fire & Flower Holdings expects to acquire the company upon favorable regulatory conditions.

Fire & Flower Holdings is a cannabis retailer with more than 100 corporate-owned stores.

Fire & Flower Holdings (FAF) is down by 2.64 per cent trading at $2.58 per share as of 10:59 am EST.


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