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Cannabis M&A Activity, & Canopy Facility Goes Up In Smoke
Fire & Flower To Acquire Friendly Stranger Holdings Corp, Village Farms Completes Acquisition Of Pure Sunfarms & Canopy Growth Cultivation Facility Goes Up In Smoke
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Fire & Flower To Acquire Friendly Stranger Holdings Corp
The race to become the largest cannabis retail chain in Canada continues as Fire & Flower announced the acquisition of the Friendly Stranger Holdings Corp in a deal said to be worth over $23 Million CAD.
Fire & Flower will issue up to 31.1 million shares to complete this acquisition, in addition to providing the Friendly Stranger Holdings Corp with upwards of $2,000,000 CAD in working capital which will be secured against the assets of the Friendly Stranger Holding Corp and bears interest at a rate of 1.0% per year.
With this acquisition Fire & Flower is expected to own and operate an additional 11 licensed cannabis retail stores across the province of Ontario, with an additional 4 cannabis stores in queue to be licensed and operational by the end of Q4 2020 which is the projected timeline for this deal to close.
The acquisition will also provide Fire & Flower with an additional three retail brands - Friendly Stranger, Hotbox and Happy Dayz, however, it remains unclear weather or not Fire & Flower will discontinue the brands or retain the usage of them.
Village Farms Completes Acquisition Of Pure Sunfarms
Since cannabis legalization in 2018 Pure Sunfarms have established themselves as one of the leading cannabis brands across Canada, and today Village Farms announced that they have acquired the remaining 41.3% of Pure Sunfarms from Emerald Health.
The ever increasing demand for Pure Sunfarms products saw their retail branded sales volume for Q2 increase a staggering 89% compared to Q1 of 2020, in addition to occupying the top spot on the OCS as top-selling brand of dried flower products.
This acquisition will provide Village Farms with full ownership of Pure Sunfarms, and marks the end of the partnership agreement which has been in place with Emerald Heath since 2018 - when they founded this joint venture.
In total, Village Farms paid $79.9 million for this remaining stake in Pure Sunfarms and the acquisition was conducted via a $60 million CAD cash payment, as well as a promissory note that was issued for $19.9 million, with the note being due six months from the closing date of this transaction.
Canopy Growth Cultivation Facility Goes Up In Smoke
As the supply of legal cannabis continues to outpace demand here in Canada it has become quite commonplace in recent months for large cannabis producers such as Aurora and Canopy Growth to close the facilities they no longer need.
Yesterday at 7:30 AM PST, local police were called to the former Tweed cannabis cultivation facility in Delta B.C after several reports of black smoke coming from the building. The facility has been out of operations for several months, and Police have confirmed that no one appears to have been inside the facility when the fire broke out.
The blaze is reported to have taken several hours to extinguish completely, and both the cause of the fire and the extent of the damage currently remains unknown.
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