Emblem Signs 3-Year Supplier Agreement with Fire & Flower
TORONTO, April 11, 2018 (GLOBE NEWSWIRE) — Emblem Corp. (TSXV:EMC) (TSXV:EMC.WT) (“Emblem” or the “Company”), announced today that it has entered into a supplier agreement (the “Agreement”) pursuant to which Emblem, through its wholly owned subsidiary, Emblem Cannabis Corp., will become a preferred cannabis supplier to Fire & Flower Inc. (“Fire & Flower”).
Subject to the approval and subsequent Royal Assent of Bill C-45, the proposed Cannabis Act (Canada) and the receipt by Fire & Flower of all required licensing under the applicable provincial cannabis regimes, pursuant to the Agreement, Emblem will supply Fire & Flower with Emblem branded cannabis products for an initial period of three consecutive years. It is expected the products will be sold in-store in all provinces in which Fire & Flower operates and, if applicable, in which Emblem has received a provincial listing.
Nick Dean, CEO of Emblem, says the deal presents an incredible opportunity for Emblem to get their adult-use brands into the hands of consumers across Canada.
The retail environment will be critical to generating brand awareness, educating the consumer about products and ultimately driving market share for our adult-use brands. Today’s deal with Fire & Flower reinforces our belief that the greatest shareholder value will be achieved in the long-run via channels that give the greatest access to consumers.
Nick Dean, CEO of Emblem
As Fire & Flower is building a leading retail concept in the cannabis space, we anticipate that this arrangement will assist us in our single-minded focus on driving shareholder value.
“We are excited to enter into this agreement with Emblem. Their awareness of the importance of the retail channel in cannabis as well as their commitment to creating adult-use brands that resonate with consumers aligns well with Fire & Flower’s best-in-class retail cannabis strategy,” explains Trevor Fencott, CEO of Fire & Flower. “There is a lot to accomplish preparing for legalization in Canada, and having partners like Emblem that can move as quickly and decisively as us in the space is definitely an asset.”
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, Mr. Shapiro owns approximately 19.5% of the common shares of Fire & Flower and controls and directs approximately an additional 65% of the common shares through a voting trust. Further, Maxim Zavet, a director of the Company, owns approximately 4.2% of the common shares of Fire & Flower and Nick Dean, the President and Chief Executive Officer of the Company owns approximately 0.3% of the common shares of Fire & Flower.
Due to the ongoing nature of the negotiations surrounding the Agreement, there will be less than 21 days between the date on which the Company files a material change report with respect to the entering into of the Agreement. The Company considers this is reasonable and necessary in order to ensure the Company’s ability to become a preferred supplier and to obtain the benefits associated with the Agreement.
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.
For further information contact:
Chief Financial Officer
Vice President, Brand & Marketing
Fire & Flower Inc.
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