Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWF) is set to enter the U.S. market with the opening of a California store.
According to a statement Tuesday, the firm’s licensing partner, American Acres Managers, has changed its name to Fire & Flower U.S. Holdings and opened the first branded store in Palm Springs.
The company announced its plans to enter the U.S. weed market in February through a licensing arrangement with American Acres, which aims to roll out more Fire & Flower stores and expand its American retail footprint.
Fire & Flower says it has the option to buy American Acres at a “discount to fair market value.” But that deal is expected if weed is legalized on the federal level in the U.S. or when allowed by policies of the Toronto Stock Exchange or other stock exchanges that the company is listed on.
It’s a significant milestone for the company to officially plant its roots in the U.S. cannabis market, says Fire & Flower CEO Trevor Fencott.
“Our Hifyre cannabis digital retail and analytics platform has propelled our growth and leadership position in Canada allowing us to successfully capture consumer buying behaviours and apply predictive and real-time analytics unlike any of our competitors,” he says in a statement.
“As we have continued to demonstrate the value of our technology through the rapid expansion of our multi-banner retail network of over 85 stores throughout Canada, the expansion of our brand and technology into the U.S. is the next step in our evolution. We are pleased to now be delivering the same omni-channel, convenience-oriented cannabis retail experience to U.S. consumers and pave the way for the future of cannabis retail in the U.S as legislation continues to develop.”
On Thursday, the company’s stock rose 9.7 per cent to $1.02 on the Toronto Stock Exchange.
Earlier this month, Fire & Flower bought digital assets from subsidiaries of Wikileaf Technologies Inc. (CSE: WIKI). The deal with the online weed platform is part of the company’s digital strategy.