Fire & Flower Holdings Corp. (“Fire & Flower” or the “Company”) (TSX: FAF) (OTCQX: FFLWF) a leading cannabis consumer retail and technology platform announced today updates to its U.S. market entry through its strategic arrangement with Fire & Flower U.S. Holdings Inc. (“Fire & Flower U.S.”).
As previously announced, the Company has entered into an amended and rested option agreement (the “Option Agreement”) pursuant to which Fire & Flower has an option to acquire Fire & Flower U.S. and an amended licensing agreement to deploy the Hifyre™ technology platform in the United States.
In addition to an initial licensing agreement in Palm Springs, California, Fire & Flower’s Hifyre™ technology will be deployed in a leading Denver, Colorado dispensary. Hifyre will receive digital revenue from the deployment of its software in this market and anticipates receiving these revenues in the Company’s third quarter and subsequent quarters through recurring software-based revenue.
Fire & Flower U.S. is also in the final stages of submitting applications for five cannabis retail store locations in the state of New Mexico. Fire & Flower U.S. also currently operate a cannabis retail store in Palm Springs, California, which utilizes the full ensuite of Hifyre technology.
“Fire & Flower view the U.S. market as a major opportunity and we are thrilled to see President Biden pardon all prior federal offenses of simple cannabis possession and instruct an expeditious review of how cannabis is scheduled under the Federal Controlled Substances Act,” said Stéphane Trudel, Chief Executive Officer of Fire & Flower. “Initiation of this review is a meaningful and welcome step forward towards U.S. federal legalization of cannabis for adult use. We look forward to the results of this review which could provide a major opportunity for Fire & Flower to exercise our option to acquire Fire & Flower U.S. Our option to acquire Fire & Flower U.S. provides us with a U.S. market entry avenue that we believe is unique to any Canadian cannabis retailer.”
Fire & Flower continues to monitor developments in the U.S. to consider when it may exercise its option to acquire Fire & Flower U.S. A copy of the Option Agreement is available on the Company’s profile on sedar.com.