Fiore Cannabis: M&A In Colorado, Non-Binding Term Sheet For Financing Up To C$30M With Institutional Fund

Fiore Cannabis Ltd. FIOR FIORF a company that intends to become a vertically integrated Canadian-American multi-state operator announced the closing of its Colorado merger with Unified Global on May 13, 2022. 

“This transaction enables the combined company to be a powerhouse platform for consolidating profitable operators with enhanced opportunities for cannabis entrepreneurs, investors, and stakeholders,” stated Fiore in a press release. 

The company seeks to improve its revenue-generating operations in Nevada and California and aggregate up to C$50 million of revenue opportunities after the transaction with Unified Global. Fiore intends to use the proceeds of the financing to fund the various acquisitions and corporate needs that support its corporate expansion strategy. 

The Fiore and Unified Global combination is focused on closing up to 41 retail cannabis retail locations and cultivation facilities in Colorado, Oregon and Alberta to create the first Canadian-American multi-state operator (Can-Am MSO). 

Management Commentary 

“I’m very excited we have merged Unified Global with Fiore and will be leveraging the leadership from the talented Unified Global team that has over 100 combined years of cannabis experience when combined with Fiore’s team. Unified Global has built out an amazing acquisition program and integration infrastructure, and is currently working with a US$200 million pipeline of M&A opportunities,” said Paul Lufkin, executive chairman and CEO of Unified Global, a subsidiary of Fiore. 

“We are actively growing our company as we look to consolidate profitable cannabis operators and generate enhanced options for cannabis entrepreneurs and investors,” Lufkin added. “This flexible financing option can play a vital role in providing us the dry powder to continue executing on our growth strategy and to drive shareholder value.”

Financing From Institutional Fund  

On May 16, Fiore signed a non-binding term sheet for financing up to C$30 million in Fiore common shares “with an institutional fund proven to be supportive of the cannabis industry,” according to a company press release. “This financing was one of the relationships that were brought in by Unified as part of the merger.”

The term sheet is subject to final due diligence and the parties entering into a definitive binding agreement, which is expected to be entered into within 30 days. Common shares will be issued at a price equal to the previous 15-day closing price of the common shares, minus a 10% discount.

Fiore will release further particulars concerning the financing once the parties have entered into a binding definitive agreement. "There is no assurance that the financing will occur or that the parties will enter into a definitive agreement on the terms described or at all," per the release. 

Image By Ilona Szentivanyi.