Alimentation Couche-Tard, a Canadian multinational operator of convenience stores, has made a strategic investment in the independent Fire & Flower Holdings Corp., a Canadian cannabis retailer. Fire & Flower Holdings Corp. has 23 licensed cannabis retail stores located in Alberta, Ontario and Saskatchewan.

This investment gives Fire & Flower Holdings Corp. the capital backing it needs in order to accelerate its growth and to expand into new markets. As part of this investment, Couche-Tard will invest nearly $26 million in the form of unsecured convertible debentures, giving it 9.9 percent ownership interest in Fire & Flower Holdings Corp. upon conversion. At the closing of the deal, Couche-Tard will be given nomination rights to Fire & Flower’s board, which will escalate commensurate with exercise of the warrants and the increase in Couche-Tard’s ownership position. Couche-Tard will receive three series of share purchase warrants that, if fully exercised, would increase Couche-Tard’s ownership interest to 50.1 percent on a fully diluted basis.

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