May 2, 2019

Fire and Flower buys four Saskatchewan pot shops in 'aggressive' acquisition plan


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EDMONTON -- Four cannabis retail outlets in Saskatchewan have been purchased by an Alberta-based company.

Fire and Flower (FAF.V) is taking over the operations of Prairie Sky Cannabis Inc., which has stores in North Battleford, Estevan, Martensville and Moosomin under the name Jimmy's Cannabis Shop.

The Edmonton company says it wants to strengthen its brand presence in Saskatchewan.

The purchase price of $13 million includes $6.5 million in cash and $6.5 million in company shares.

Fire and Flower CEO Trevor Fencott says in a release that the Saskatchewan acquisition is the first in what he calls an aggressive acquisition strategy for 2019.

Fire and Flower announced early last year that it was moving its headquarters to Edmonton, with plans to open 30 stores in Alberta.

"Along with our existing portfolio of organic growth opportunities, the acquisition puts us in a good position to meet our growth goals for the year," Fencott said in the company's statement.

Prairie Sky Cannabis president John Thomas said Fire and Flower is an exemplary operator of cannabis retail stores.

"We are pleased that our customers will be well served by the Fire and Flower team," he said.

Fire and Flower Holdings Corp. owns all issued and outstanding shares in Fire and Flower Inc., and is a consultant and licensor to Fire and Flower-branded retail locations in Ontario. 

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