Fire & Flower and Hifyre Declare Plans To Acquire PotGuide for US$8.5-Million
The Dank Investor Posted On August 26, 2021 
Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWF) and Hifyre™ Inc, their wholly-owned subsidiary and retail sales platform revealed plans to acquire PotGuide. Fire & Flower is set to acquire all issued and outstanding shares of the Colorado-based PGED Corp.
About Fire & Flower
Fire & Flower is majorly a technology-driven company that serves as a cannabis retailer. It adopts the education-based model to enhance the selling of cannabis only to adults through its 85+ retail stores.
In addition to its current presence, the company is now looking to expand its operations in the United States and other parts of the world. The highly skilled team of experts who deal in technology, cannabis, and retail industries are looking to meet the objective of global expansion through Alimentation Couche-Tard Inc.
For the purpose of expanding their market in the United States, Fire & Flower will look to achieve it through the strategic agreement related to licenses with American Acres Managers.
The brands that fall under the umbrella of Fire & Flower are Friendly Stranger, Hotbox, Happy Dayz, and Fire & Flower. The company owns all the shares in Fire & Flower and Friendly Stranger. These brands operate the company’s retail stores in the provinces of British Columbia, Saskatchewan, Ontario, Alberta, Manitoba, and the Yukon Territory.
About Hifyre
It is a wholly-owned subsidiary of Fire & Flower. The objective of Hifyre is to advance the company in terms of its proprietary retail operations.
The product list of Hifyre Digital Retail and Analytics Platform includes Hifyre ONE retail software, Spark Perks member program, and the data & analytics platform. Additionally, Hifyre enhances the competitive edge of the company by providing data related to consumer behavior in the market and customized digital experiences.
The Proposed Fire & Flower and PotGuide Acquisition Agreement
The acquisition has been agreed upon by all the parties involved for a total of $8.5 million approximately. The total amount will be payable in two forms. One form is the cash value of $4.0 million, and the other form is the holding of 5,978,050 shares. The shares will be valued based on the average of the past 10-days’ price in the market.
The company expects to close the acquisition by its third fiscal quarter. The finalization of the agreement is subject to the satisfaction of all the conditions of the Share Purchase Agreement. The parties involved are also waiting to receive approval from relevant regulatory bodies.
What The PotGuide “Acquisition” Means to Fire & Flower
PotGuide, one of the most visited websites for cannabis in North America, is all set to make Hifyre the most visited website for cannabis. The company had earlier proposed that it would acquire certain assets of Wikileaf (CSE: WIKI). Both PotGuide and Wikileaf are expected to take the company to the top of the list for content related to cannabis.
Once the acquisition is closed by all the parties involved, the U.S. will become the base for the company in terms of technology and operations.
Because the acquired platforms have a large number of visitors, the company looks forward to taking this in its favor and convert the majority of the traffic on its platform to the sale of cannabis and related accessories.
A few of the locations will be served once the company has created agreements with relevant networks across the U.S. and Canada.
Fire & Flower’s Spark Perks™ currently serves around 300,000 subscribers. After closing the acquisition, the base of subscribers will increase by 225,000 approximately. The acquisition will assist the company in gaining a better understanding of the preferences of the consumers who reside in North America. This will be done under the IQ data program of Hifyre.
Trevor Fencott, the Chief Executive Officer of Fire & Flower, recently shared that the acquisition of PotGuide was commendable, and the growth was a result of the proven effectiveness of the company’s data analytics retail platform. He believes that the company can offer a greater value to the firms acquired as it has now become the top-most global player in generating digital traffic for cannabis.
Jeremy Bamford, the Chief Executive Officer of PotGuide, expressed his excitement at the same level. He added that the acquisition would enable them to grow their business strategically and offer a higher value to their customers.
