Major Canadian cannabis store chain Fire & Flower is raising 16 million Canadian dollars ($11.7 million) from its key investor, gas station and convenience store giant Alimentation Couche-Tard.
The capital raise includes a CA$11 million loan from Couche-Tard to Fire & Flower, which carries an 11% annual interest rate and matures at the end of 2023.
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Couche-Tard also agreed to purchase Fire & Flower shares in a private placement for proceeds of roughly CA$5 million.
The transaction, announced Tuesday, also involves amendments to the terms of Series C Warrants in Fire & Flower held by Couche-Tard.
That warrant and share deal is subject to regulatory approvals.
Fire & Flower “will prudently use this capital to continue to grow the business and build upon the recent success we have seen through improvements in our retail, wholesale and logistics, and digital business segments,” Fire & Flower CEO Stéphane Trudel
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