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“Fire & Flower’s financial and operational results for the quarter demonstrate that the Company is continuing to build the infrastructure required to support the rapid growth of our retail network and deliver on our objectives,” shared Trevor Fencott, Fire & Flower’s Chief Executive Officer. “Our strategic partnership with Alimentation Couche-Tard is transformative for the Company and the HifyreTM digital retail platform continues to showcase Fire & Flower as a leading data-driven, ‘retail 2.0’ company.”
During the thirteen weeks ended August 3, 2019, the Company generated revenue of $11.1 million including cannabis and cannabis-related accessory sales of $9.7 million, wholesale sales of $0.9 million and digital development revenue of $0.5 million. During the thirteen weeks ended May 4, 2019, the Company generated revenue of $9.5 million including cannabis and cannabis-related accessory sales of $7.7 million, wholesale sales of $1.3 million and digital development revenue of $0.5 million. Revenues are expected to continue to increase as the Company acquires new licences, opens additional retail cannabis stores, and continues to commercialize the HifyreTM digital retail and analytics platform subject to the issuance of new licences and the entry of the Company into new markets.
Total gross profit for the thirteen weeks ended August 3, 2019 was $4.0 million or 36.5% of revenue with retail and wholesale operations delivering $3.6 million, or 33.6%, gross profit, compared to $3.7 million with retail and wholesale operations delivering $3.2 million, or 35.6% of gross profit for the thirteen weeks ended May 4, 2019.
The Company recorded a net comprehensive loss of $6.5 million, or a net loss per share of $0.06 for the thirteen weeks ended August 3, 2019.
On August 7, 2019, Fire & Flower closed a strategic investment by Alimentation Couche-Tard, a global retailer with vast international infrastructure of 16,000 stores in 25 countries around the globe. This transformative transaction allows for Couche-Tard to obtain a controlling interest and provides more than $380 million of growth capital (if all securities issued to Couche-Tard in connection with the strategic investment are converted and exercised in full) for global expansion.
Benefits Of The Strategic Investment
In connection with the strategic investment, the Company has issued:
For further information, see “Description of the Business – Strategic Investment” in the AIF filed on SEDAR on August 2, 2019.
Fire & Flower continues to evolve its retail platform through a data-driven approach using the proprietary HifyreTM digital retail and analytics platform. The Company continues to focus on its existing markets of Alberta, Saskatchewan, Manitoba and Ontario and intends to enter British Columbia as market regulations permit. The Company anticipates it will accomplish the following milestones across all addressable markets.
Through its wholly-owned subsidiary, Hifyre Inc., the Company continues to commercialize and expand its digital retail and analytics platform that collects and analyzes consumer data to develop insights around purchase preferences. The HifyreTM platform provides real time reporting and analysis to the Company’s marketing, retail experience and merchandising teams and is supplied to Licensed Producers to assist in demand forecasting, product development and sales reporting. This platform is integral to Fire & Flower operating as a data-driven “retail 2.0” Company.
Fire & Flower’s financial statements and management discussion and analysis for the period are available on Fire & Flower’s SEDAR profile at www.sedar.com and on Fire & Flower’s website at www.fireandflower.com/investor-relations/.
Fire & Flower is a leading purpose-built, independent adult-use cannabis retailer poised to capture significant Canadian market share. The Company guides consumers through the complex world of cannabis through education-focused, best-in-class retailing while the HifyreTM digital platform connects consumers with cannabis products. The Company’s leadership team combines extensive experience in the cannabis industry with strong capabilities in retail operations.
Fire & Flower Holdings Corp. owns all issued and outstanding shares in Fire & Flower Inc., a licensed cannabis retailer that owns or has interests in cannabis retail store licences in the provinces of Alberta, Saskatchewan, Manitoba and Ontario and the Yukon territory.
Through the strategic investment of Alimentation Couche-Tard (ATD.A, ATD.B), the Company has set its sights on the global expansion as new cannabis markets emerge.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward-looking information within the meaning of applicable Canadian securities laws (“forward-looking statements”). All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “outlook”, “expect”, “project” and similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions “may” or “will” occur. These statements are only predictions.
Forward-looking statements are based on the opinions and estimates of management of Fire & Flower at the date the statements are made based on information then available to the Fire & Flower. Various factors and assumptions are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Forward-looking statements are subject to and involve a number of known and unknown risks and uncertainties, many of which are beyond the control of the Fire & Flower, which may cause Fire & Flower’s actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. No assurance can be given that the expectations reflected in forward-looking statements will prove to be correct.
Fire & Flower assumes no obligation to publicly update or revise forward-looking statements to reflect new information, future events or otherwise, except as expressly required by applicable law.
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