Cannabis Corner: Fire & Flower sparks it up for investors

Article Excerpt

In this issue we look at a cannabis retailer with a very experienced and deep-pocketed partner. Fire & Flower’s alliance with Alimentation Couche-Tard, which operates 12,661 convenience stores across North America and Europe, should help the pot seller to continue expanding—and adding value for investors. In August 2019, Couche-Tard invested $25.9 million in Fire & Flower. It bought debentures that are convertible into a 9.9% interest in the company. Couche-Tard also received warrants, which if exercised will bring its interest in the company to 50.1%. We think you should be encouraged by Couche-Tard’s investment and potential to help Fire & Flower add new stores and gain market share in Canada’s evolving cannabis market. It’s a buy. FIRE & FLOWER HOLDINGS $1.16 (Toronto symbol FAF; TSINetwork Rating: Speculative) (fireandflower.com; Shares o/s: 119.3 million; Market cap: $162.0 million; TSI Cannabis Quality Rating [CQR]: ) is a Canadian-based licensed cannabis and accessories retailer with 46 stores in Alberta, Saskatchewan, Manitoba, Ontario and the Yukon. For the quarter ended November…