LAVAL, Quebec — Alimentation Couche-Tard Inc. (ACT) is expanding its strategic cannabis partnership with Fire & Flower Holdings Corp.
In the companies latest move, Fire & Flower subsidiary Hifyre Inc. has entered into licensing agreements with a wholly owned subsidiary of Couche-Tard, bringing the Hifyre cannabis technology platform and Spark Perks membership program to four additional co-located stores in the cities of Guelph, Hamilton, Brampton and Oshawa, Ontario.
The new co-located stores are expected to open in the coming weeks at:
- 10010 McLaughlin Road in Brampton
- 138 College Ave W. Guelph
- 1311 Harmony Road N. in Oshawa
- 648 King Street West in Hamilton
With the execution of these licensing agreements, there will be seven co-located Circle K cannabis stores operating under either Fire & Flower corporate or technology licensing business models in the provinces of Alberta and Ontario.
Fire & Flower continues to seek other opportunities to expand its Circle K co-location store program, according to the company.
“Couche-Tard continues to see promise in the cannabis market and is committed to learning more about the space as it evolves in Canada and internationally,” said Alex Miller, Executive Vice President Couche-Tard operations, North America. “With now five cannabis stores co-located next to high traffic Circle K stores in the Greater Toronto Area, we see this as a natural extension of our expertise to combine our hands-on shopping experience and differentiate the store’s footprint with growing customer demand for cannabis products.”
Additionally, Fire & Flower has entered into an asset purchase agreement to acquire two cannabis retail stores in Kingston, Ontario from a wholly owned subsidiary of Couche-Tard.
The locations, located at 500 Gardiners Road and 1100 Princess St., are expected to open as owned, operated and Fire & Flower branded stores in the fourth quarter of 2022.
The acquisition is subject to closing conditions set forth in the purchase agreement, including, but not limited to, obtaining regulatory approval from the Alcohol and Gaming Commission of Ontario.
Couche-Tard owns more than 10% of the outstanding voting securities of Fire & Flower.
“We continue to demonstrate major progress in expanding our strategic relationship with Couche-Tard through the licensing of Hifyre’s proprietary platform and Spark Perks membership program to four additional co-located cannabis stores and the proposed acquisition of two cannabis stores,” said Stéphane Trudel, CEO of Feu & Fleur. “In addition, Couche-Tard recently committed its financial support through the previously announced $11 million loan and $5 million private placement, subject to shareholder approval. Access to valuable Circle K real estate through these co-located stores demonstrates the value differentiation of the strategic relationship with our partner, Alimentation Couche-Tard. »
The executive continues:We continue to improve a fast and convenient cannabis shopping experience with the Hifyre technology platform and have recently begun delivery of other complementary products, including snacks, through the Firebird Delivery platform. »
Alimentation Couche-Tard, parent company of Circle K, entered into a joint venture with Fire & Flower in 2019. As part of this partnership, ACT is providing Fire & Flower with additional capital to further accelerate its expansion strategy.
Toronto-based Fire & Flower is a consumer cannabis retail and technology platform with more than 90 company-owned stores in its network. With strategic investment from ACT, the company is aiming for global expansion as new cannabis markets emerge. It is set to expand into the United States when permitted by its strategic licensing agreement with Fire & Flower US Holdings during certain changes to the cannabis regulatory regime.
Headquartered in Laval, Alimentation Couche-Tard operates in 26 countries and territories, with more than 14,100 stores, of which approximately 10,800 offer road transport fuel. It is one of the largest operators of independent convenience stores in the United States, as well as in Canada, Scandinavia, the Baltics and Ireland.