Fire & Flower Holdings Stock (TSX: FAF) (OTCQX: FFLWF) - Investor Dashboard
| ➔ Fire & Flower | |||||
|---|---|---|---|---|---|
| TSX Ticker: | FAF | ||||
| OTCQX Ticker: | FFLWF | ||||
| Market Focus: | Canada |
| Classification: | Retailer |
| Country: | Canada |
| Employees: | 937 as of 4/30/21 |
| Established: | 2017 |
| CEO: | Trevor Fencott |
Summary
| Fiscal Year-End: | Feb 1 |
| Licensed Stores: | 80+ |
| Auditor: | PwC |
| Trading Debut: | 02/19/19 |
| Headquarters: | Edmonton, Alberta |
Financials (05/01/21)
| Cash on hand: | C$32.7 million |
| Fixed Investment: | C$43.7 million |
| Shareholders’ Equity: | C$86.6 million |
| Revenues : | C$44.1 million |
| Gross Margin : | 37.5% |
| EPS : | -C$0.21 |
Capital Structure (06/11/21)
| Last Financing: | $28 million convertible notes |
| Common Shares: | 332.8 million |
| Warrants: | 220.0million |
| Options: | 19.0 million |
| Diluted Shares: | 575.8 million |
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 goal is to establish the most recognizable and successful brand of independent cannabis retail stores.
With more than 80 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.
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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
- 87 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 250,000 digitally engaged customers
- C$25 million in system sales since opening on October 17, 2018
- Well-capitalized to execute on build-out of stores
- 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
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
- Entrance into the U.S. market via a licensing agreement with American Acres; targeting retail expansion in Arizona, California and Nevada
- Aiming to reach more than 100 retail stores by Q4 of 2021
- Spark Perks member program to drive customer engagement
- Completed the Friendly Stranger acquisition, substantially expanding the company’s footprint in Ontario and across Canada
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
- Fire & Flower gift cards available at Circle K stores and pilot project to co-locate cannabis stores adjacent to Cirlce K stores through the Alimentation Couche-Tard partnership
Institutional Analyst Coverage
David M. Kideckel
ATB Capital
Endri Leno
National Bank Financial
Justin Keywood, CFA
Echelon Wealth Partners
Andrew Semple
Stifel GMP
Curated Stories & News
Visit Fire & Flower Holdings.
at www.fireandflower.com.
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