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Fire & Flower US Closes $5M Convertible Debenture Financing

Benzinga Real-time News ·  Aug 25, 2022 08:54

Fire & Flower US Holdings Inc. (formerly American Acres Managers) has completed a non-brokered private placement of unsecured convertible debentures in the principal amount of approximately $5 million to the existing shareholders of the company. The net proceeds from the offering will be used for acquisition capital, capital expenditures and general working capital. With operations already in California, operating as Fire and Flower and utilizing the Hifyre platform, this unique partnership allows expansion to additional states including Colorado, bringing with it the Hifyre technology optimizing the personalized connection to customers. They are anticipating accessing two additional states in Q4 of 2022.

"Our team is excited to expedite the deployment of resources to expand both the Fire & Flower brand and the Hifyre platform to additional states, improving overall customer experience," stated Joe Gullia, national director of retail.

The debentures bear interest at 8% per annum and mature on August 2, 2024. The debentures may be converted, in whole or in part at the option of the company, into common shares in the capital of the company at a minimum conversion price of $1.00 per share at any time prior to the maturity date. If Fire & Flower Holdings Corp. (OTCQX:FFLWF) (OTC:FFLWD) (TSX:FAF) acquires the company under its purchase option previously announced on January 31, 2022, then the debentures will automatically convert into common shares in accordance with their terms immediately prior to the closing of the acquisition.

Photo by Mackenzie Marco on Unsplash

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