To keep the retail ball rolling, Alimentation Couche-Tard (Couche-Tard), convenience store giant, will be executing a majority of their Series A warrants with Fire & Flower, giving the cannabis retailer $19 million to expand. This raises Couche-Tard’s stake in the company from 10% to 15%.
This comes as part of an amendment agreement that revises some of the securities issued from Fire & Flower. In August 2019, Fire & Flower issued $25.9 million in debentures to Couche-Tard, as well as hundreds of millions of dollars in common share purchase warrants amounting to a 50.1% share of the company if fully cashed in. This new amendment agreement not only covered the early exercising of a portion of those warrants, but also extended maturity dates and adjusted prices for other warrants and securities.
According to Trevor Fencott, CEO of Fire & Flower, these amendments will help position Fire & Flower to become a leading cannabis retailer in Canada.
“We are pleased with the proposed amendments to the strategic investment by Alimentation Couche-Tard and believe this will continue to build our strategic relationship,” Fencott said in a press release.
Stéphane Trudel, Senior Vice President of Operations with Couche-Tard, agrees, saying the company is pleased with Fire & Flower’s progress.
“In addition to the amendments to the strategic investment, we will continue to work closely with Fire & Flower and support the company’s ambitious growth plans,” he says.
The partnership recently opened two co-locations with Circle K convenience stores, helping push stock prices over the $1 mark for the first time since February.