/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO
UNITED STATES WIRE
SERVICES/
Fire & Flower strategically positioned to
expand its geographical footprint through the industry's first full
cannabis consumer technology platform
TORONTO, Jan. 25, 2022 /CNW/ - Fire & Flower Holdings
Corp. ("Fire & Flower" or the "Company") (TSX:
FAF) (OTCQX: FFLWF), a leading, technology-powered, cannabis
retailer, today announced the Company has completed the acquisition
of Pineapple Express Delivery Inc. ("Pineapple Express
Delivery" or "PED"), a leading
logistics technology company offering compliant and
secure delivery services for controlled substances and regulated
products, including transportation and delivery of medical and
recreational products in Ontario,
Manitoba and Saskatchewan, and liquor products in
Saskatchewan. The acquisition of
Pineapple Express Delivery provides Fire & Flower with the
final component to execute upon its strategy of offering a full
consumer technology platform to the cannabis industry.
![Fire & Flower and Hifyre acquire Pineapple Express Delivery (CNW Group/Fire & Flower Holdings Corp.) Fire & Flower and Hifyre acquire Pineapple Express Delivery (CNW Group/Fire & Flower Holdings Corp.)](https://mma.prnewswire.com/media/1733219/Fire___Flower_Holdings_Corp__FIRE___FLOWER_COMPLETES_ACQUISITION.jpg)
PED is widely recognized throughout the cannabis industry as the
largest player in the cannabis delivery space, completing more than
40,000 deliveries per month to recreational and medical cannabis
customers across Canada. Through
this strategic acquisition, Fire & Flower has completed its
proprietary technology stack to deliver a seamless customer
experience by combining its technology-driven retail network of
over 100 stores across North
America with this newly acquired, best-in-class cannabis
fulfillment and delivery service.
Trevor Fencott, Chief Executive
Officer of Fire & Flower, stated, "The acquisition of Pineapple
Express Delivery marks the final step in building, what we believe
to be, the cannabis industry's first end-to-end consumer technology
experience. With a full omni-channel retail strategy, a data-driven
analytics platform, and now same-day, last-mile delivery
capabilities, we've developed an asset-light technology stack that
can support the entire cannabis retail ecosystem, from initial
customer acquisition, through product discovery, ultimately ending
at the customers' front door."
"Our Hifyre™ technology powered retail network has quickly
driven greater high-margin revenue streams for Fire & Flower
and the inclusion of Canada's
largest cannabis delivery and logistics services strategically
supports our business model as we enter new markets utilizing our
high-margin, scalable technology infrastructure. We look forward to
rolling out our enhanced cannabis technology platform throughout
Canada and eventually the U.S.
with our strategic partner, Alimentation Couche-Tard, to
demonstrate the unparalleled value of this model," concluded
Fencott.
"It is exciting to see the completion of this acquisition and
entering the next phase of the Pineapple Express Delivery story. By
joining Hifyre and Fire & Flower, PED will continue to build
one of the largest cannabis delivery platforms in Canada and the U.S.," shared Randy Rolph, Founder of PED. "Pineapple Express
Delivery will complement the Fire & Flower business model and
Hifyre will continue to add meaningful value to the business
through its industry-leading technology platform and analytics. We
believe this is a winning combination as our companies share an
unwavering focus on supporting and empowering businesses, consumers
and our communities. Together we will continue to grow and
innovate, and this acquisition of Pineapple Express Delivery is a
natural and timely fit given our broader expansion strategy."
As consideration for the purchase of Pineapple Express Delivery,
Fire & Flower has assumed and repaid approximately $5.15 million in debt owed by Pineapple Express
Delivery and issued a total of 1,153,142 common shares of Fire
& Flower ("Common Shares"), of which a total of 313,708
have been released and the remainder have been placed into escrow
pending completion of customary working capital adjustments and
subject to achievement of certain performance-based milestones in
the fiscal 2022 year. Haywood Securities Inc. acted as exclusive
financial advisor to Pineapple Express Delivery.
To learn more about Pineapple Express Delivery, visit
https://pineappleexpressdelivery.com/.
About Fire & Flower
Fire & Flower is a leading, technology-powered, adult-use
cannabis retailer with more than 100 corporate-owned stores in its
network. The Company leverages its wholly-owned technology
development subsidiary, Hifyre, to continually advance its
proprietary retail operations model while also providing additional
independent high-margin revenue streams. Fire & Flower guides
consumers through the complex world of cannabis through
education-focused, best-in-class retailing while the Hifyre digital
retail and analytics platform empowers retailers to optimize their
connections with consumers. The Company's leadership team combines
extensive experience in the technology, cannabis and retail
industries.
Through the strategic investment of Alimentation Couche-Tard
Inc. (owner of Circle K convenience stores), the Company has set
its sights on global expansion as new cannabis markets emerge and
is poised to expand into the United
States when permitted through its strategic licensing
agreement with Fire & Flower U.S. Holdings upon the occurrence
of certain changes to the cannabis regulatory regime.
Fire & Flower is a multi-banner cannabis retail operator
that owns and operates the Fire & Flower, Friendly Stranger,
Happy Dayz and Hotbox brands. Fire & Flower Holdings Corp. owns
all issued and outstanding shares in Fire & Flower Inc. and
Friendly Stranger Holdings Corp., licensed cannabis retailers that
own and operate cannabis retail stores in the provinces of
British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and the Yukon territory.
To learn more about Fire & Flower, visit
www.fireandflower.com.
About Pineapple Express Delivery Inc.
The Pineapple Express Delivery management team has over 10 years
of experience offering same-day 60-minute delivery services in
multiple industries across Canada
with a record breaking 40,000 deliveries per month. Pineapple
Express Delivery offers a personalized experience for its customers
and has established in-depth security and delivery protocols to
facilitate same-day delivery of medical and recreational cannabis
across the country. Pineapple Express Delivery has been providing a
same day delivery option to the legal cannabis industry from
October 17, 2018 and has provincial
offices set up across Canada.
Pineapple Express Delivery is a subsidiary of World-Class
Extractions Inc. (CSE: PUMP) (FRA: WCF) (OTCQB: WCEXF). For more
information please visit https://pineappleexpressdelivery.com/.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
This news release contains certain forward-looking
information within the meaning of applicable Canadian securities
laws ("forward-looking statements"). All statements other than
statements of present or historical fact are forward-looking
statements. Forward-looking statements are often, but not always,
identified by the use of words such as "anticipate", "achieve",
"could", "believe", "plan", "intend", "objective", "continuous",
"ongoing", "estimate", "outlook", "expect", "project" and similar
words, including negatives thereof, suggesting future outcomes or
that certain events or conditions "may" or "will" occur. These
statements are only predictions.
Forward-looking statements are based on the opinions and
estimates of management of Fire & Flower at the date the
statements are made based on information then available to the Fire
& Flower. Various factors and assumptions are applied in
drawing conclusions or making the forecasts or projections set out
in forward-looking statements. Forward-looking statements are
subject to and involve a number of known and unknown, variables,
risks and uncertainties, many of which are beyond the control of
Fire & Flower, which may cause Fire & Flower's actual
performance and results to differ materially from any projections
of future performance or results expressed or implied by such
forward-looking statements. Such factors, among other things,
include: regulatory and other approvals or consents; fluctuations
in general macroeconomic conditions; fluctuations in securities
markets; the impact of the COVID-19 pandemic; the ability of the
Company to successfully achieve its business objectives and
political and social uncertainties.
No assurance can be given that the expectations reflected in
forward-looking statements will prove to be correct. Although the
forward-looking statements contained in this news release are based
upon what management of the Company believes, or believed at the
time, to be reasonable assumptions, the Company cannot assure
shareholders that actual results will be consistent with such
forward-looking statements, as there may be other factors that
cause results not to be as anticipated, estimated or intended.
Readers should not place undue reliance on the forward-looking
statements and information contained in this news release.
Additional information regarding risks and uncertainties relating
to the Company's business are contained under the heading "Risk
Factors" in the Company's annual information form dated
April 30, 2021 and the heading "Risks
and Uncertainties" in the management discussion and analysis for
the quarter ended October 30, 2021
filed on its issuer profile on SEDAR at www.sedar.com .
The forward-looking statements contained in this press release are
made as of the date of this press release, and the Company does not
undertake to update any forward-looking statements that are
contained or referenced herein, except in accordance with
applicable securities laws.
No stock exchange, securities commission or other regulatory
authority has approved or disapproved the information contained
herein.
SOURCE Fire & Flower Holdings Corp.