Fire & Flower Holdings’ (FFHC) wholly-owned subsidiary Fire & Flower has signed a binding agreement to acquire all of the issued and outstanding shares of 102056025 Saskatchewan from Mera Cannabis.
The Saskatchewan Liquor and Gaming Authority (SLGA) selected the acquired company 102056025 Saskatchewan as part of its 2018 province-wide lottery, to operate a cannabis retail store in Regina, Saskatchewan.
Design and build services of the store will be provided by Fire & Flower’s store development team in accordance with regulatory standards. The team will also assist 102056025 Saskatchewan with advanced retail expertise.
Fire & Flower will pay $1,500,000 in cash and issue 2,268,191 common shares of FFHC, towards the acquisition.
The transaction is subject to receipt of all permits required to operate a cannabis retail store, including approval from SLGA.
Upon completion of the transaction, Fire & Flower and its affiliate, Open Fields Distribution, have agreed to sign a supply agreement with Mera. Open Fields Distribution will serve as the exclusive distributor of Mera’s adult-use cannabis products in Saskatchewan.
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Fire & Flower will purchase Mera’s cannabis products for re-sale at its retail locations, in permitted provinces, under the supply agreement.
Fire & Flower CEO Trevor Fencott said: “The exclusive supply agreement with Mera will further enable Fire & Flower retail stores to maintain consistent, high-quality cannabis product supply while maintaining higher margins than retailers who do not have exclusive supply agreements.”
The supply agreement will commence once Mera receives necessary approvals from both Health Canada and the SLGA.
Mera CEO Zubin Jasavala said: “Our agreement with Open Fields Distribution adds significant bench strength to our adult-use distribution strategy with key retailers in Canada.”