Cannabis retailer Fire & Flower reviewing strategic options

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Canadian marijuana retail chain Fire & Flower Holdings says it is “reviewing strategic options including financing options,” as the company requires more funding to continue doing business.

Fire & Flower “is actively pursuing financing options to raise additional capital in order to fund its operations, meet its future growth targets and continue to operate as a going concern,” said the company in a late Friday news release.

“There is no assurance that these initiatives will be successful, timely or sufficient.”

In a May 15 regulatory filing, Fire & Flower management stated that its ability to continue as a going concern depended on “increasing revenues, improving profitability and cash flows, availability of funding from debt, warrants and other capital market alternatives.”

“The company will require additional financing from debt, equity, and/or other capital market alternatives in the next 12 months,” wrote Fire & Flower management.

“The company is actively pursuing additional financing options to raise additional capital in order to fund its operations and meet its future growth targets, including ongoing negotiations in respect of both non-dilutive debt financing and equity financing at preferred rates.”

Fire & Flower had 8.2 million Canadian dollars ($6 million) in cash as of March 31, according to the company’s financial statements, with total current assets of CA$38 million.

In comparison, total current liabilities were listed at CA$50.8 million.

Fire & Flower reported a net loss of CA$89.5 million for its 2022 fiscal year.

Its net loss for the first quarter of 2023 was CA$10.1 million.

Fire & Flower shares trade as FAF on the Toronto Stock Exchange.