Fire & Flower Receives $37.8M from Series B Guarantee Exercise by Owner of Circle K Alimentation Couche-Tard – New Cannabis Ventures

Hearth & Flower Declares Sequence B Guarantee Train by Circle Ok Alimentation Couche-Tard Proprietor

The train of the warrant by one of many largest comfort retailers on the earth raises the shareholding to greater than 35%

TORONTO, April 29, 2022 /CNW/ – Hearth & Flower Holdings Corp. (“Hearth & Flower” or the “Firm”) (TSX: FAF) (OTCQX: FFLWF), a number one retail and know-how platform for hashish customers, as we speak introduced that, along with an train intent discover delivered on Dec. April 2022, 2707031 Ontario Inc., an oblique wholly owned subsidiary of Alimentation Couche-Tard Inc. (collectively “ACT”), exercised warrants (the “Sequence B Warranties”) efficient April 28, 2022, to accumulate 8,288,067 frequent shares of Hearth & Flower (the “Shares”) pursuant to the phrases of a Second Amended and Consolidated Guarantee Certificates dated January 18, 2022 (the “Sequence B Guarantee Certificates”).

The Firm obtained gross proceeds of $37,794,556 (the “Procedures”) from the train of Sequence B Warrants, comprising (a) 6,717,554 Sequence B Warrants exercised at a worth of $4.5103, representing the weighted common worth for the 20-day quantity of the Firm’s frequent shares and (b) 1,580,513 Sequence B Bonds exercised on the worth of $4.7732, in every case, in accordance with the phrases of the Sequence B Bond Certificates.

Pursuant to the phrases of the mortgage settlement dated December 13, 2021 between the Firm and ACT (the “Mortgage Settlement”), a portion of the Proceeds was used to repay all quantities owed to ACT underneath the Mortgage. There are not any additional quantities due underneath the Mortgage Settlement. The opposite funds from the train of the Sequence B Bonds will likely be used for basic company functions, working capital wants and to finance different strategic initiatives of the Firm.

We’re excited to additional strengthen our relationship with Alimentation Couche-Tard, whose unwavering assist has enabled Hearth & Flower to execute our technology-focused differentiation technique and finally obtain our imaginative and prescient of Delivering Hashish to the World.

Trevor Fencott, CEO of Hearth & Flower.

Following the train of the Sequence B Warrants, ACT’s curiosity in Hearth & Flower frequent inventory elevated from roughly 14.48% to roughly 35.32%. ACT additionally holds $2,407,415 of the principal quantity of 8.0% convertible debentures and 17,796,284 inventory warrants (the “Sequence C Bonds”). Sequence C Warrants could also be exercised between October 1, 2022 and June 30, 2023 at an train worth equal to the lesser of (A) $30.00; and (B) 125% of the 20-day VWAP of Hearth & Flower’s frequent shares on the final buying and selling session previous to the train date of the Sequence C Warrants. 4,457,206 of the Sequence C Warrants, which had been issued pursuant to the train of recharge by ACT, are additionally topic to a minimal strike worth of $4.7732. The Firm has additionally granted ACT sure pursuits and add-on rights pursuant to an Amended and Consolidated Investor Rights Settlement dated September 16, 2020 to obtain extra bonds from Hearth & Flower which, if exercised, entitle ACT to an combination minimal direct and oblique possession of fifty.1% of the issued and excellent frequent shares of Hearth & Flower on a completely diluted foundation.

About Hearth and Flower

Hearth & Flower is a number one tech-driven grownup hashish retailer with over 100 corporate-owned shops throughout its community. The corporate leverages its wholly-owned know-how growth subsidiary, Hifyre, to repeatedly advance its proprietary retail operations mannequin whereas offering high-margin impartial income streams. Hearth & Flower guides customers by the complicated world of hashish by best-in-class, education-focused retail, whereas the digital retail and analytics platform Hifyre empowers retailers to optimize their connections with customers. The corporate’s management group combines intensive expertise within the know-how, logistics, hashish and retail sectors.

By way of the strategic funding of Alimentation Couche-Tard Inc. (proprietor of Circle Ok comfort shops), the corporate is eyeing international enlargement as new hashish markets emerge and is able to broaden to the US when allowed by its strategic licensing settlement with Hearth & Flower US Holdings following sure modifications to the hashish regulatory regime.

Hearth & Flower is a multi-banner hashish retail operator that owns and operates the Hearth & Flower, Pleasant Stranger, Completely satisfied Dayz and Hotbox manufacturers. Hearth & Flower Holdings Corp. owns all the issued and excellent shares of Hearth & Flower Inc. and Pleasant Stranger Holdings Corp., licensed hashish retailers that personal and function retail hashish shops within the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and the Yukon Territory.

To be taught extra about Hearth & Flower, go to

About Couche-Tard Inc.

Couche-Tard is a worldwide chief in comfort and gas retail, working in 26 nations and territories, with greater than 14,100 shops, of which roughly 10,800 provide gas for street transport. With its well-known Couche-Tard and Circle Ok banners, it is among the largest impartial comfort retailer operators in the US and is a frontrunner within the comfort retailer and trucking gas retail trade in Canada, Scandinavia, the Baltics, in addition to in Eire. It additionally has an vital presence in Poland and the Hong Kong SAR. Roughly 124,000 individuals are employed throughout its community.

For extra details about Alimentation Couche-Tard Inc. or to seek the advice of its quarterly Consolidated Monetary Statements and Administration Dialogue and Evaluation, go to: https://corpo.couche‑

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For fact-based details about Hearth & Flower, see the corporate’s sponsored Investor Panel.

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Posted by NCV Newswire

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New Hashish Ventures’ NCV Newswire goals to curate high-quality content material and details about main hashish corporations to assist our readers filter by the noise and keep on high of crucial hashish enterprise information. NCV Newswire is manually curated by an editor and isn’t automated in any approach. Obtained a confidential information tip? Get in contact.

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