Fire & Flower Holdings has signed a definitive agreement to acquire certain assets of Prairie Sky Cannabis which operates four licensed retail cannabis stores.
Prairie Sky Cannabis operates the stores located in the Canadian province of Saskatchewan in the communities of Battleford, Estevan, Martensville and Moosomin under the name Jimmy’s Cannabis Shop.
Pursuant to the agreement, Fire & Flower will acquire Prairie Sky Cannabis’ interest in the leases, equipment, furnishings, inventory and provincial and municipal licences and permits used to operate the licensed locations for about $13m.
Fire & Flower CEO Trevor Fencott said: “The acquisition of four additional retail cannabis stores in the province of Saskatchewan is the first in Fire & Flower’s aggressive acquisition strategy for 2019.
“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.”
Upon closing of the transaction, the company expects that the acquisition of the four Jimmy’s Cannabis Shop locations will grow its brand presence across Saskatchewan.
The transaction will bolster Fire & Flower’s Open Fields Distribution network and increase its geographic ability to serve the province through its bricks and mortar, e-commerce, delivery and click and collect sales channels.
The acquisition will also provide additional insights into preferences through Fire & Flower’s HiFyre digital retail platform.
Prairie Sky Cannabis president John Thomas said: “Fire & Flower has demonstrated its commitment to the province of Saskatchewan and we wish the company success in its pursuit as Canada’s leading cannabis retailer.”
The proposed transaction is expected to close on or about 13 May 2019.
At that time, the Jimmy’s Cannabis Shop stores will be re-branded as Fire & Flower bringing the store count to 17 stores across Alberta, Saskatchewan and Ontario.