Fire & Flower Holdings Corp. (TSX: FAF) (OTC: FFLWF) and its wholly-owned subsidiary Hifyre Inc. recently announced a proposed acquisition of PGED Corp., the operator of PotGuide.com.
Following the company’s $7.5 million purchase agreement to acquire another online cannabis platform Wikileaf Technologies Inc. (CSE: WIKI), Fire & Flower’s retail and analytics platform, Hifyre, will compete with the largest and highest valued cannabis technology companies.
With a goal of creating white-labeled online dispensaries and converting the traffic into cannabis and accessory purchases, Fire & Flower will use the assets acquired through PotGuide and Wikileaf to reach new consumers. This model, already proven successful in the Canadian market, will provide significant scalability through the white-labeling e-commerce platform and exposure to the U.S. cannabis marketplace.
Potguide and Wikileaf’s existing subscriber base of approximately 225,000 cannabis consumers represent a clear opportunity for growth of Fire & Flower’s Sparks Perks program, which already boasts more than 300,000 subscribers. Spark Perks members receive special benefits where permitted, including Spark Fastlane click-and-collect checkout, personalized recommendations, curbside pickup, free rapid delivery and exclusive deals. No cannabis purchase is required to join the free program. Orders placed through these new digital dispensaries will be fulfilled at licensed retail stores within FAF's network in Canada and the U.S.
Commenting on the deals, CEO Trevor Fencott told Benzinga, “As a Cannabis retailer, the acquisitions of PotGuide and Wikileaf will only further our position atop the market. By combining these resources with Hifyre, we’ll reach consumers through new methods allowing for increased sales and brand knowledge in the marketplace. The expanded reach Fire & Flower now possesses through both acquisitions allows us to reach digital consumers, an important factor in our business model of creating a seamless, safe cannabis shopping experience.”
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