While the company does have physical stores, it is evolving to become more of a technology platform, according to CEO Trevor Fencott.
As Fire & Flower becomes more of a cannabis consumer technology platform, its leadership team has evolved.
The company is also in the process of listing on the NASDAQ, historically a technology exchange, according to Fencott.
At the beginning of this year, the company completed the acquisition of Pineapple Express Delivery, which gives it the capability to complete more than 40,000 deliveries per month.
Other companies compete with parts of Fire & Flower’s tech stack, but they don’t have all of the company’s digital capabilities, according to Fencott.
Fire & Flower currently has 103 retail stores in Canada, and it plans to expand its retail footprint through an asset-light approach.
When it comes to expansion via M&A, the Fire & Flower team will keep an open mind, but it will be discerning.
The company is extracting high-margin, compliant revenue from its technology licensing and laying the groundwork for federal legalization in the United States.
At the end of 2021, Fire & Flower secured a $30 million credit line from Couche-Tard, another step forward with its strategic partner.
After that, the C warrants will give Couche-Tard up to 50.1 percent of the company, exercisable until next June, according to Fencott.
The company also has the ability to seek outside funding, which Couche-Tard would be obliged to participate in, according to Fencott.
Fencott expects 2022 to be a challenging year for cannabis retail in Canada, but Fire & Flower is prepared for the challenge because of its digital strategy.
It can work with Fire & Flower US to extract high-margin digital revenue while it waits for the regulatory landscape to evolve.