Canadian convenience store operator Alimentation Couche-Tard Inc. closed its previously announced strategic investment in cannabis retailer Fire & Flower Holdings Corp., according to an Aug. 7 release.
The deal will see Couche-Tard invest C$26 million in the form of unsecured convertible debentures, which will mature June 30, 2021, or 90 days following the date when Fire & Flower's existing debt is retired, converted or transferred, whichever date comes later. Couche-Tard will own 9.9% of Fire & Flower after the debentures, which bear an 8% annual interest rate, are converted into common shares at C$1.07 per share.
In addition, the company also announced that Fire & Flower has resumed trading of its common shares on the Toronto Stock Exchange as of Aug. 7.
"Through this strategic investment, we reinforce our intention to become a key player in North America's cannabis industry as we further expand in Canada and look to leverage our presence in the United States and beyond," Couche-Tard President and CEO Brian Hannasch said in a statement.
Couche-Tard also announced the appointment of Jeremy Bergeron as the company's initial nominee for Fire & Flower's board.
National Bank Financial Inc. acted as Couche-Tard's financial adviser. Davies Ward Phillips & Vineberg LLP served as the company's legal adviser.