Canadian Cannabis Retailer Fire & Flower Purchases Ottawa, Kingston Stores

Fire & Flower Holdings Corp FFLWF FAF shared Monday its expansion plans for the province of Ontario. 

The company said it has obtained a Retail Operator License from the Alcohol and Gaming Commission of Ontario and has also applied for Retail Store Authorizations for eight new store locations in the province.

The construction of these additional eight store locations is expected to start soon, which will enable Fire & Flower to finalize needed approvals, according to the company. 

Fire & Flower additionally said it has purchased Ottawa- and Kingston-branded stores operated under license by two Ontario cannabis retail store license holders.

These stores have so far posted $16.53 million in sales, according to the company. Fire & Flower said it will report sales from the stores as its own revenue from now on. 

The company said it issued 800,000 common shares for the purchase, reserving up to 933,333 extra common shares for when ppost-closing arrangements are completed.

"Ontario is a key strategic priority for Fire & Flower and our receipt of a Retail Operator Licence and submission of Retail Store Authorizations for eight locations is a clear demonstration of our focus on this market," CEO Trevor Fencott said in a statement.

"By completing the acquisition of both the Ottawa and Kingston locations, Fire & Flower anticipates strengthening its financial position and operating income from these high performing stores."

The stock was trading 13.46% higher at 48 cents at the time of publication Monday. 

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