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

Summary

Financials (04/30/22)

Capital Structure (06/14/22)

Company Brief

Fire & Flower is a leading independent, multi-brand 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 vision is to become the largest cannabis consumer platform by using technology to focus on customer needs and by transforming the way they learn about and purchase cannabis.

With more than 100 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.

Fire & Flower

Fire & Flower has a strategic agreement with convience store operator Alimentation Couche-Tard that began in 2019. Couche-Tard made an initial investment of C$26M and can gain a 50.1% controlling interest of the company through a series of escalating tranches. This allows Fire & Flower access to Couche-Tard’s 14,000 stores in 26 countries. Fire & Flower is participating in a co-located store program launching across Canada.

Highlights

• New company focused exclusively on a regulated cannabis retail “cannabis 2.0” in Canada
• 100+ cannabis retail stores in its retail network across Alberta, Saskatchewan,  Manitoba, the Yukon, Ontario and British Columbia
• Proprietary Hifyre active cannabis data platform; more than 420,000 digitally engaged customers
• Well-capitalized to execute on build-out of stores
• White-label SAAS retail platform that can be licensed to regulated cannabis retailers in emerging international markets
• Four brands: Fire & Flower, Friendly Stranger, Happy Dayz and Hot Box
• Spark Perks member program to drive customer engagement
• Completed the Friendly Stranger acquisition, substantially expanding the company’s footprint in Ontario and across Canada

Growth Strategy

• Scalable, high-margin, asset-light growth strategy
• Strategic investment by convenience store operator Alimentation Couche-Tard to take the company into global markets
• Entrance into the U.S. market via a licensing agreement with American Acres (now Fire & Flower US Holdings); targeting retail expansion in Arizona, California and Nevada
• Partnership with BDS Analytics drives entry into the U.S. and incorporates U.S. consumer data into the Fire & Flower platform
• Expanding online product catalog with the addition of Humble & Fume accessories in North America
• Expanded digital strategy with the acquisitions of Wikileaf assets and PotGuide; creation of branded online dispensaries
• Acquired logistics technology company Pineapple Express Delivery, enabling same-day delivery
• Sparks Perks Member Pricing to increase revenue and drive profitability

Differentiators