Fire & Flower enters deal to buy Pineapple Express as Tilray acquires Breckenridge Distillery
In this week’s “Rising High,” The Fly’s recurring series focused on cannabis and psychedelic stock news, The Fly looks back on Fire & Flower making an acquisition to advance its e-commerce strategy, as well as other acquisitions and analyst views.
FIRE & FLOWER TO ACQUIRE PINEAPPLE EXPRESS DELIVERY: Fire & Flower Holdings (FFLWF) and its wholly-owned subsidiary Hifyre announced Thursday entering into a definitive agreement to acquire Pineapple Express Delivery. Upon completion of the acquisition, Fire & Flower will have all the necessary components in its business to deliver a full consumer technology platform experience, supported by a network of more than 100 retail stores and full same-day delivery to cannabis consumers. The company said, “The addition of Pineapple Express to the family of Fire & Flower properties will provide a clear value proposition to Canadian cannabis consumers through unrivaled convenience and speed of delivery at compelling prices due to efficiencies realized through a distributed asset-light retail network.”
Total consideration for the acquisition of Pineapple Express is payable by the company by way of assumption and repayment of approximately $5.3M in cash debt owed by Pineapple Express and the issuance of up to approximately 1,126,761 common shares of Fire & Flower. Pineapple Express revenue for the trailing 12-month period ended October 31, 2021 was approximately $10M. The acquisition will be completed by way of three-cornered amalgamation with a newly incorporated subsidiary of Hifyre. Completion of the acquisition is subject to the satisfaction or waiver of customary closing conditions, including the approval of the TSX and approval by the shareholders of Pineapple Express at a shareholders’ meeting to be convened in January 2022. The acquisition is expected to close in Q1 2022.
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