Investment in Fire & Flower
Fire & Flower
Based in Edmonton, Canada, Fire & Flower is a corporate retail store, specialising in elevating Canadian cannabis products through experiential strategies and education-based programming. The company is poised to serve customers across Canada, in provinces where private retailing of cannabis is permitted. Fire & Flower plans to open 37 retail locations in the province of Alberta alone once permitted by regulatory bodies.
Founded by leading legal cannabis entrepreneurs, Fire & Flower's leadership team carries extensive experience in launching successful businesses and 20 years in the legal cannabis space. The company is well versed in the national legalisation of cannabis and is actively influencing the evolution of the new cannabis industry across Canada. Please visit fireandflower.com for further details.
MMJ has acquired 1.25 million common shares in Fire & Flower at CAD$0.80 per share. Each common share has a warrant exercisable at MMJ's discretion and convertible into common shares in Fire & Flower at CAD$1.05 per common share for a period of up to 24 months. Fire & Flower can accelerate the expiry date of each warrant due to a liquidity event (including a public listing of Fire & Flower).
MMJ's CEO, Jason Conroy, commented, "Fire & Flower is a retail investment with an experienced management team and significant potential that further diversifies our portfolio ahead of the expected federal legalisation of cannabis later this year in Canada."
After making the investment in Fire & Flower, MMJ's unaudited head office cash position will be approximately AUD$1.8 million before receiving proceeds from the investment in Dosecann Inc that is the subject of a takeover proposal (as announced by MMJ on 5 April 2018).
About MMJ PhytoTech Ltd
In October 2017, MMJ PhytoTech Limited (ASX:MMJ) announced its strategy to become an incubator for strategic investments across regulated jurisdictions globally covering the entire cannabis value chain.
Following the successful listing of United Greeneries Holdings Ltd ("United Greeneries") and Satipharm AG ("Satipharm") on the TSX-V through Harvest One Cannabis Inc. (CVE:HVT), MMJ has focused on the identification of a number of independent strategic investment opportunities that have the potential to deliver significant value to the Company's shareholders.
MMJ is actively pursuing early stage opportunities with the ability to deliver significant future revenue and the opportunity to provide dramatic global synergistic value as regulatory frameworks in key international markets continue to evolve. MMJ is targeting the full range of emerging cannabis-related sectors including healthcare products, technology, infrastructure, logistics, processing, cultivation, equipment, R&D, hemp food products and retail.
MMJ currently holds an equity stake of 53,333,333 shares in Harvest One, 100% ownership of Israeli-based R&D division PhytoTech Therapeutics Limited ("PTL") and strategic holdings in e-Sense Lab Limited (ASX:ESE) and private Canadian-based company WeedMe Inc.
MMJ PhytoTech Ltd