Fire & Flower To Buy Pineapple Express Delivery For $5.3M, 'Powering Its Asset-Light Retail Strategy'

Fire & Flower Holdings Corp.  FAF FFLWF and its wholly-owned subsidiary Hifyre Inc. confirmed Thursday it will buy Pineapple Express Delivery Inc., Canada's largest delivery and logistics company serving the cannabis sector, for $5.3 million.

Through this acquisition, Fire & Flower will have all the necessary components in its business to deliver a full consumer technology platform experience, supported by a network of more than 100 retail stores and full same-day delivery to cannabis consumers.

The Acquisition Highlights

Total consideration for the acquisition of Pineapple Express is payable by way of assumption and repayment of approximately $5.3 million in cash debt owed by Pineapple Express and the issuance of up to approximately 1.13 million common shares of Fire & Flower. Pineapple Express revenue for the trailing 12-month period ended October 31, 2021 was approximately $10 million.

The acquisition will be completed by way of a three-cornered amalgamation with a newly incorporated subsidiary of Hifyre. Upon obtaining all necessary approvals the transaction is expected to close in Q1 2022.

Pineapple Express will provide same-day delivery in key markets across Canada, leveraging their existing fleet of vehicles, drivers and dispatch personnel. Its proprietary technology on the CannDeliv platform will be added to the Hifyre technology stack.

"The Acquisition of Pineapple Express will complete our proprietary technology stack and allow us to deliver a seamless customer experience from online customer acquisition and discovery at our top-of-funnel sites such as PotGuide.com and Wikileaf.com, through a personalized online or in-store shopping experience powered by Hifyre and our Spark Perks™ program and now culminating in best-in-class fulfillment service right to our customers' doors through Pineapple Express,” Trevor Fencott, CEO of Fire & Flower stated. “To our knowledge, this complete cannabis consumer technology platform is the first of its kind in the legal cannabis industry and will power our asset-light retail strategy, not just in Canada but across North America. “

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