Adult-use cannabis retailer Fire & Flower Holdings Corp. FAF FFLWF confirmed Tuesday it has entered the California market through its strategic affiliate American Acres Manager, which has rebranded to “Fire & Flower U.S. Holdings.” Its first Fire & Flower branded store has opened in Palm Springs, California at 4810 E Camino Parocela.
The news comes on the heels of the company’s acquisition of certain assets from subsidiaries of Wikileaf Technologies Inc. (CSE: WIKI) in a $7.5 million all-stock deal. Wikileaf is an online platform for cannabis consumers and enthusiasts, with high user traffic achieved through enticing content and domain name power. Under the deal, Fire & Flower will obtain specific digital assets and intellectual property rights of Wikileaf, with the goal of advancing its proprietary data-driven retail platform.
The Toronto-headquartered company first announced its entry into the U.S. cannabis scene back in February, confirming a licensing deal with America Acres for its Fire & Flower brand
store operating system and Hifyre technology platform for dispensaries in California, Arizona
and Nevada.
Through this deal, Fire & Flower reaches U.S. cannabis markets with the help of American Acres and the launch of new stores across booming markets.
Regarding the licensing deal, Fire & Flower obtained an option exercisable to buy American Acres at a discount to fair market value. The purchase is expected to happen upon federal legalization of recreational cannabis in the U.S. or when regulations allow.
"We have reached a significant milestone for our Company as we have officially planted our roots in the U.S. cannabis market through our strategic partner, American Acres," Trevor Fencott, CEO of Fire & Flower stated. "Our Hifyre cannabis digital retail and analytics platform has propelled our growth and leadership position in Canada allowing us to successfully capture consumer buying behaviors and apply predictive and real-time analytics unlike any of our competitors.”
Fencott added that reaching the U.S. is the next step in the company’s evolution. “We are pleased to now be delivering the same omnichannel, convenience-oriented cannabis retail experience to U.S. consumers and pave the way for the future of cannabis retail in the U.S as legislation continues to develop," Fencott concluded.
Price Action
Fire & Flower shares were trading 3.23% higher at 75 cents per share at the time of writing Tuesday morning.
Photo: Courtesy of Fire & Flower
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