TORONTO — Fire & Flower Holding Corp.’s strategic licensing partner, American Acres Managers, has officially changed its name to Fire & Flower U.S. Holdings and has opened its first Fire & Flower branded store in Palm Springs, Calif.
Fire & Flower is an independent adult-use cannabis retailer that owns and operates the Fire & Flower, Friendly Stranger, Happy Dayz and Hotbox brands. Alimentation Couche-Tard Inc., parent of the Circle K convenience-store brand, in 2019 made a strategic investment in Fire & Flower Holdings Corp., investing about $26 million to obtain a 9.9% ownership interest in Fire & Flower. Through the strategic investment of Couche-Tard., Laval, Quebec, Fire & Flower has set its sights on the global expansion as new cannabis markets emerge.
Fire & Flower, Edmonton, Alberta, announced its strategic entry into the U.S. cannabis market in February 2021 when it signed a licensing agreement with American Acres to license its Fire & Flower brand, store operating system and Hifyre technology platform for dispensaries in California, Arizona and Nevada.
Through this licensing arrangement, American Acres is expanding Fire & Flower's retail footprint in the United States with the rollout of new Fire & Flower stores in targeted, high-growth markets, the company said.
“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,” said Trevor Fencott, Fire & Flower CEO. “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.
“As we have continued to demonstrate the value of our technology through the rapid expansion of our multibanner retail network of over 85 stores throughout Canada, the expansion of our brand and technology into the U.S. is the next step in our evolution,” he continued. “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.”
In connection with the licensing agreement with American Acres, Fire & Flower received an option exercisable to acquire American Acres at a discount to fair market value. The company anticipates that the acquisition will occur upon the federal legalization of adult-use cannabis in the United States or when otherwise permitted by the policies of the Toronto Stock Exchange or any other stock exchange on which the company's securities are listed for trading.