Fire & Flower Holdings Stock (TSX: FAF) (OTCQX: FFLWF) - Investor Dashboard

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➔ Fire & Flower
TSX Ticker:	FAF
OTCQX Ticker:	FFLWF

Market Focus:	Canada
Classification:	Retailer
Country:	Canada

Employees:	495 as of 2/1/20
Established:	2017
CEO:	Trevor Fencott

Summary

Fiscal Year-End:	Feb 1
Licensed Stores:	48
Auditor:	PwC
Trading Debut:	02/19/19
Headquarters:	Edmonton, Alberta

Financials (8/1/20)

Cash on hand:	C$20.0 million
Fixed Investment:	C$34.7 million
Shareholders’ Equity:	C$24.4 million
Revenues :	C$28.6 million
Adj. Gross Margin :	34.8%
EPS :	C-$0.18

Capital Structure (09/11/20)

Last Financing:	$28 million convertible notes
Basic Shares:	164.5 million
Warrants:	243.8 million
Options:	14.3 million
Diluted Shares:	502.9 million

Company Brief

Fire & Flower is a leading independent adult-use cannabis retailer poised to capture significant market share in Canadian provinces and territories that allow for the private retail of adult-use recreational cannabis. The company’s goal is to establish the most recognizable and successful brand of independent cannabis retail stores.

With more than 50 retail stores, Fire & Flower believes that today’s cannabis consumers generally do not have preferences to existing cannabis products. This means the retail brand is of greater importance to the consumer than the product brand. Given the restrictive nature of cannabis marketing, it is difficult for products to build direct relationships with the consumer. A significant opportunity exists for the company to emphasize education, own the relationship with the consumer and place its brand ahead of the product brands.

Featured Video

Fire & Flower York Street Cannabis opens at 129 York Street

In July 2019, Fire & Flower entered a strategic agreement with convience store operator Alimentation Couche-Tard that closed in August. Couche-Tard made an initial investment of C$26 million and can gain a 50.1 percent controlling interest of the company through a series of escalating tranches. The agreement gives Fire & Flower access to Couche-Tard’s 16,000 stores in 25 countries.

Highlights

New company focused exclusively on a regulated cannabis retail “cannabis 2.0” in Canada
53 stores operating or licensed stores in its retail network across Alberta, Saskatchewan, Manitoba, the Yukon and Ontario
Proprietary Hifyre active cannabis data platform; more than 100,000 digitally engaged customers
C$25 million in system sales since opening on October 17, 2018
Well-capitalized to execute on build-out of stores

Growth Strategy

Strategic investment by convenience store operator Alimentation Couche-Tard to take the company into global markets
A focus on Western Canada where the regulatory framework is most favorable; plans to expand its retail network in Ontario, Alberta and British Columbia
Aiming to reach more than 100 retail stores by Q4 of 2021
White-label SAAS retail platform that can be licensed to regulated cannabis retailers in emerging international markets
Spark Perks member program to drive customer engagement

Differentiators

Independent cannabis retailer serving consumers where private retail is permitted
Founded by successful legal cannabis entrepreneurs
Full e-commerce platform, including Spark Fastlane “click-and-collect” service, curbside pick-up, delivery and in-store pickup
Wholly owned subsidiary Open Fields provides additional revenue through the wholesale of cannabis products and accessories
CBD product private label brand Revity CBD

Institutional Analyst Coverage

David M. Kideckel
AltaCorp Capital

Andrew Semple
Echelon Wealth Partners

Jenny Wang, CPA
Eight Capital

Justin Keywood, CFA
GMP

Curated Stories & News

Visit Fire & Flower Holdings.
at www.fireandflower.com.