As part of its U.S. expansion plans, Canadian cannabis retailer Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWF) will be consolidating its shares on a 10-to-1 basis to qualify for listing on the Nasdaq.
In a statement Monday, the firm said the consolidation was approved by shareholders during a special meeting in June, and is expected to be completed in the coming weeks.
The 358,146,179 shares prior to consolidation have been reduced to about 35,814,617. Each shareholder’s percentage ownership in the firm and proportional voting power remains the same.
“The share consolidation is an important step in our U.S. expansion strategy,” CEO Trevor Fencott said in the statement.
“It enables Fire & Flower to qualify for a listing on the Nasdaq and expand its shareholder base which, in turn, provides the company with increased flexibility and enhanced liquidity to accelerate its strategic growth plans.”
Shares will continue to be listed on the Toronto Stock Exchange, and are expected to be trading post-consolidation around Dec. 1.
The company had targetted the fourth quarter for its Nasdaq listing.
Through a deal with Fire & Flower U.S. Holdings, the firm is set to expand into the U.S. pending changes to cannabis regulations south of the border.
In recent months the firm has expanded its online presence by acquiring cannabis platforms Wikileaf and PotGuide, and the firm has said its digital strategy is progressing.
According to Fire & Flower’s latest quarterly earnings report, revenues from Hifyre, its digital platform, went up more than 30 per cent quarter-to-quarter, performing better than the firm’s other segments.
“We have built an industry-leading cannabis consumer technology platform and, as demand for our technology platform continues to build in the U.S., now is the right time to advance our Nasdaq listing and make our shares more accessible to a larger investor audience,” Fencott added.
Company stock fell by 3 per cent on Monday to $0.63 on the Toronto Stock Exchange.