The move came on the heels of its recent debut on the Nasdaq Stock Market.
The Toronto-based company agreed to license its Fire & Flower brand, store operating system and Hifyre technology platform for dispensaries across these states. It will also have an option to purchase American Acres at a discount. The pending deal is expected to occur once the U.S. legalizes recreational cannabis on the federal level.
The company expects to cut the ribbon on its first branded store in Palm Springs, California, in the first half of fiscal 2021.
“Securing an agreement that will rapidly place Fire & Flower licensed stores in the United States is the first step in executing our vision well ahead of federal legalization in the United States,” Fire & Flower CEO Trevor Fencott said Monday.
Fire & Flower shares closed Friday at $1.12 — up 3.48%.
Fire & Flower’s Expansion Strategy
It seems that Fire & Flower is accelerating its expansion plans, taking into account its moves from the previous period.
During the third quarter, the company opted to purchase Satica Cannabis store in Toronto as well as NCannabis retail locations under the agreement with Busboy Ventures Inc, to name a few.
The moves resulted in generating around $33.1 million at a gross profit of 34.7% for the period, representing a year-over-year and sequential increase of 142% and 15.8%, respectively.
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