Couche-Tard Expands Strategic Cannabis Partnership | Convenience Store News

LAVAL, Quebec – Alimentation Couche-Tard Inc. (ACT) extends its strategic cannabis partnership with Fire & Flower Holdings Corp.

Circle K’s parent company started a business with Fire & Flower in 2019. As part of this partnership, ACT provides Fire & Flower with additional capital to further accelerate its expansion strategy.

In the latest investment, Fire & Flower entered into a loan agreement with 2707031 Ontario Inc., an indirect wholly owned subsidiary of ACT. As part of the agreement, ACT will lend Fire & Flower a maximum total amount of $ 30 million, which may be split into three separate tranches of $ 10 million. Subject to the terms of the agreement, the loan will bear interest at the rate of 8% per annum, payable quarterly, and will mature on October 1, 2022.

Fire & Flower will use the money to further develop its consumer digital platform, as well as for general corporate purposes.

“Access to $ 30 million in non-dilutive debt financing is solid proof of the support of our partner, Alimentation Couche-Tard. It also serves as proof of our alignment towards the future of cannabis retail. Through their leadership, network and expertise, we accelerate the dynamics of the retail shopping experience and create a consumer-centric marketplace that leverages technology and data-driven insights to deliver a personalized collection. products to consumers and reach them wherever they are, ”said Trevor Fencott, CEO of Fire Flower.

“As we move forward in our development, we are delighted to continue to build on this relationship and further expand our co-located store program to provide the most convenient shopping experience for our customers,” he added.

Retail milestones

Circle K and Fire & Flower are expanding their pilot program, where it opens cannabis retail stores adjacent to existing Circle K convenience stores in new markets across Canada.

The first two co-located stores, in Calgary and Grand Prairie, Alta., Used ACT’s existing lease footprint to build a small-scale Fire & Flower retail operation.

The expansion will bring new retail stores co-located in the Canadian provinces of Alberta, Saskatchewan and Manitoba. The agreement also offers the possibility of further expanding the program to other high value-added markets, including Ontario and the United States.

“Alimentation Couche-Tard has been an invaluable partner for Fire & Flower as we have built the largest retail network for legal cannabis products and services in Canada over the past two years. Our success in Canada, and now as we enter the United States, is directly linked to attributable to the powerful analytics and consumer data technology that we have successfully used in each of our stores through our platform. technological Hifyre, ”Fencott said. “As we continue to strengthen our leadership position, we leverage our powerful consumer data, working strategically with our key partners to capture that data and together improve our collective cannabis operations, enabling Fire & Flower to advance our “light of assets”. “Business model to further support our financial growth.

“As we continue to advance our relationship with Couche-Tard, we are bringing a new level of service to our vast operational footprint in Canada and beyond. We are able to leverage the power of Hifyre to enable these small, collocated stores to operate The advanced analytics we provide enable stores to operate and manage inventory with maximum efficiency, ”he continued .

Earlier this month, Fire & Flower opened its 100th cannabis retail store in Scarborough, Ontario, making the company one of the largest cannabis retail chains in North America.

Digital milestones and awards

Earlier this year, Fire & Flower’s acquisitions of PotGuide and Wikileaf enhanced its Hifyre Asset Light approach and provided a scalable entry point to capture new Spark Perks customers and members in Canada and the United States.

Sparks Perks continues to help the Hifyre IQ data and analytics platform understand real-time cannabis consumer preferences and purchasing trends in North America, for the benefit of Fire & Flower and its strategic partners.

Canadian customers of PotGuide and Wikileaf can now purchase cannabis products online. Products are available for purchase and distributed through the entire Fire & Flower retail network, Friendly Stranger, Happy Dayz, and Hotbox.

Purchases are available for delivery to customers in Ontario, Manitoba, British Columbia and Saskatchewan, and will soon be available for delivery in Alberta, or available for Fastlane “click-and-collect” in retail stores.

The Spark Perks program recently reached the 360,000 member milestone. On average, Spark Perks members spend 31% more per transaction than non-members, according to Fire & Flower.

Members of the Spark Perks program enjoy exclusive benefits including Fastlane payment, curbside pickup, fast delivery where permitted, specials, member-only events, and exclusive offers. Membership in Spark Perks is free and no purchase of cannabis is required to enroll in the program.

“As we move into the next stage of growing our business, we will build on these milestones and continue to innovate and deliver an experience that truly delivers value to our customers,” concluded Fencott.

Fire & Flower is a multi-banner cannabis retail operator that owns and operates the Fire & Flower, Friendly Stranger, Happy Dayz and Hotbox brands. Fire & Flower Holdings Corp. owns all of the issued and outstanding shares of Fire & Flower Inc. and Friendly Stranger Holdings Corp. ACT owns more than 10 percent of the outstanding voting securities of the company.

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