Emblem Announces Investment in Fire & Flower
TORONTO, April 23, 2018 (GLOBE NEWSWIRE) — Emblem Corp. (TSXV:EMC) (EMC.WT) (“Emblem” or the “Company”), is pleased to announce that it has purchased C$2.5 million of units (“Units”) of Fire & Flower Inc. (“Fire & Flower”) at a price of C$0.80 per Unit (the “Subscription”) as part of a larger Unit offering conducted by Fire & Flower. Each Unit consists of one common share in the capital of Fire & Flower (each, a “Fire & Flower Share”) and one common share purchase warrant entitling the holder thereof to acquire one (1) additional Fire & Flower Share at a price of C$1.05 per share for a period of two (2) years, subject to adjustments in certain events.
Our partnership with Fire & Flower reinforces our belief that access to the end consumer is critical for driving long-term shareholder value. In a highly regulated environment, retail will be the front-line for customer education, driving product awareness, building brand affinity, and ultimately delivering the greatest margins.
Nick Dean, CEO of Emblem
Fire & Flower is building a world-class retail concept under the leadership of a proven executive team and board of directors. We are confident that our investment in Fire & Flower will deliver a significant return on investment back to Emblem shareholders, while also supporting the growth of Emblem’s adult-use brands and products.
Certain directors and officers of Emblem have interests in Fire & Flower. In particular, Harvey Shapiro, a director and the Chairman of the Company, is also a director of Fire & Flower. In addition, prior to giving effect to the offering, Mr. Shapiro owned approximately 19.5% of the Fire & Flower Shares outstanding and controls and directs approximately an additional 65% of the Fire & Flower Shares through a voting trust. Further, prior to giving effect to the offering, Maxim Zavet, a director of the Company, owned approximately 4.2% of the Fire & Flower Shares outstanding and Nick Dean, the President and Chief Executive Officer of the Company owned approximately 0.3% of the Fire & Flower Shares outstanding.
There will be less than twenty-one (21) days between the date on which the Company files a material change report with respect to the Subscription and the closing of the Subscription. The Company considers this reasonable and necessary as the Company’s participation in the offering was subject to certain conditions which were only met in advance of the closing of the offering of Fire & Flower Shares.
Emblem Corp., through its wholly-owned subsidiary Emblem Cannabis Corporation, is a fully integrated licensed producer and distributor of medical cannabis and cannabis derivatives in Canada under the ACMPR (Access to Cannabis for Medical Purposes Regulations). Led by a team of cannabis experts and former health care and pharma executives, it has three distinct verticals – cannabis production, patient education centers, and pharmaceutical dosage form development. Emblem trades under the ticker symbol EMC on the TSX Venture Exchange.
About Fire & Flower
Founded by successful cannabis entrepreneurs from the legal Canadian cannabis industry, Fire & Flower is a corporately-owned retail cannabis-lifestyle brand and store concept. Fire & Flower specializes in elevating the Canadian cannabis experience through the thoughtful curation of products, experiential offerings and education-based programming. Fire & Flower is poised to serve customers across the country in Provinces where private retail is permitted.