Fire & Flower Holdings Corp. (TSX: FAF) (OTC: FFLWF) said Wednesday it has signed a purchase agreement via its subsidiary Fire & Flower Inc. with subsidiaries of Cannabis Cowboy Inc. to acquire eight retail stores in Alberta.
Two of the stores are fully built, and one needs some construction for completion before licensing, according to Fire & Flower. The rest of the stores are still under development.
After the acquisition, Fire & Flower said it will work on obtaining cannabis retail stores licenses for each location.
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"This acquisition will increase Fire & Flower's retail footprint across the province of Alberta, including three additional high-traffic locations in the major urban market of Calgary," CEO Trevor Fencott said in a statement. "Adding these additional retail locations is a demonstration of our company continuing to execute on our growth strategy in key markets."
Upon the completion of the acquisition, Cannabis Cowboy Inc. will be paid an aggregate purchase price of $5.65 million, consisting of $4.52 million in cash and 826,930 common shares of Fire & Flower Holdings Corp.
Fire & Flower is an adult-use cannabis retailer wholly-owned by Fire & Flower Holdings Corp.
The over-the-counter stock was trading higher by 2% at $1 at the time of publication Wednesday.
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