Fire & Flower and its Subsidiary Hifyre Officially Close Their Acquisitions of Wikileaf and PotGuide
Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWF) and Hifyre have completed the acquisitions of PotGuide and Wikileaf (CSE: WIKI). As per the terms of the acquisition, Fire Flower and Hifyre will acquire all the issued & outstanding shares of PotGuide along with certain digital assets of Wikileaf.
The acquisition was announced by Fire & Flower earlier but it’s today that the company has finally closed the acquisition deal.
About Fire & Flower
Fire & Flower is a retail operator that houses multiple banners in its stores. All the banners are handled by the retail stores of Fire & Flower, namely Fire & Flower, Friendly Stranger, Happy Days, and Hotbox.
The company has a presence of licensed retail stores in six locations. These locations are the provinces of British Columbia, Saskatchewan, Alberta, Ontario, Manitoba, and the Yukon Territory.
It is powered by the latest technology which is driven across all its retail stores. The advancement is put to effective use by spreading knowledge about cannabis products. The company focuses on educating all the members of its community. This includes its customers, patients, and potential customers.
The management team of Fire & Flower has experiences members. Their experience ranges from the technology industry to the retail industry. They have an in-depth insight into cannabis products as well.
With a stronghold in the market, it aims to expand through the United States. It also aims to take its expansion on the global level through the strategic investment of Alimentation Couche-Tard Inc.
Hifyre is a wholly-owned subsidiary of Fire & Flower. It enhances the proprietary retail operations of Fire & Flower by educating the customers about its cannabis products.
It includes the Spark Perks member program, the HiFyre IQ cannabis data & analytics program, and Hifyre retail software platform.
The competition is tough in the market. It takes a lot to just survive, let alone earn a good profit. Hifyre, however, provides a competitive advantage through its data and analytics. Flower & Fire gets the edge of understanding a customer’s behavior better than its competitors.
About the Acquisition
Fire & Flower today announced that it has completed the strategic acquisition of PotGuide and Wikileaf. PotGuide, a website and content platform dedicated to cannabis, is now a part of the operations of Fire & Flower, along with Wikileaf, the most preferred online platform for cannabis products by customers and cannabis enthusiasts.
With the acquisition finally in place, the company is eyeing to expand its virtual presence and extend its e-commerce revenue channels. The acquisition has reportedly given the company an entry into the market of Canada and the U.S. The entry is expected to be scaled higher in the future.
Trevor Fencott, the Chief Executive Officer of Fire & Flower, said that the acquisition was in tune with the objective of expanding their existing retail operations with an asset-light approach. The company has always focused on being driven by technology.
The acquisition takes the focus forward as it provides an opportunity to leverage the expertise of PotGuide and Wikileaf along with the data & analytics of Hifyre.
The acquisition is expected to deliver better opportunities to the company with regular revenue and higher customer loyalty.
Around 225,000 subscribers of PotGuide & Wikileaf will be eligible to be a part of some of the best programs of Fire & Flower, similar to around 310,000 subscribers of Hifyre. The subscribers of PotGuide and Wikileaf are now eligible to unlock all the benefits of the program at a discounted price.
PotGuide has been acquired at a value of $8.5 million. The amount is payable as $4 million in cash consideration and the rest in the consideration of 5,978,050 common shares. Additionally, the company will get the weighted average price of its 10-day volume as of August 25, 2021.
Wikileaf has been acquired on similar terms. The total value has been set at $7.5 million. The entire amount is payable in the consideration of 8,017,103 common shares. It will also get the weighted average price of its 10-day volume as of August 03, 2021.