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 (08/01/21)

Cash on hand: C$29.3 million
Fixed Investment: C$47.7 million
Shareholders’ Equity: C$117.7 million
Revenues : C$43.3 million
Gross Margin : 37.4%
EPS : C$0.02

Capital Structure (09/10/21)

Last Financing: $28 million convertible notes
Common Shares: 343.9 million
Warrants: 200.6 million
Options: 18.4 million
Diluted Shares: 566.4 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.

Featured Video

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 270,000 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

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; 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
  • Expanding online product catalog with the addition of Humble & Fume accessories in North America
  • Expanded digital strategy with the acquisition of Wikileaf assets and creation of branded online dispensaries

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

Frederico Gomes
ATB Capital Markets

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.

New Cannabis Ventures in partnership with due diligence platform 420Investor, is the definitive source for fact-based, data-driven, financial information and relevant company news for qualified publicly traded cannabis companies. NCV extracts and parses only the most important content. Information is provided “as is” and solely for informational purposes, not for trading or advice. Fire & Flower, Inc. is a client of NCV Media, LLC. Read our full disclaimer.