Canadian marijuana firm Fire & Flower to buy Pineapple Express Delivery

Don’t believe the hype. Get realistic market forecasts, state by state insights and benchmarks for all cannabis sectors. Preorder the 2023 Factbook here. 

Major Canadian marijuana retail chain Fire & Flower announced a deal to acquire cannabis delivery service Pineapple Express Delivery.

Toronto-based Fire & Flower will pay for the acquisition by assuming and repaying roughly 5.3 million Canadian dollars (about $4.2 million) of Pineapple Express’ debt and issuing roughly 1,126,761 common shares, subject to the latter reaching unspecified performance milestones in fiscal year 2022.

Based on Fire & Flower’s opening share price Thursday morning, those shares would be worth roughly CA$7.2 million.

Pineapple Express, based in Burlington, Ontario, performs more than 40,000 cannabis deliveries per month in Canada, according to Fire & Flower’s news release.

The acquisition is expected to close in the first quarter of 2022.

In a statement, Fire & Flower CEO Trevor Fencott said the Pineapple Express delivery platform will complement the retailer’s existing technology, including cannabis websites PotGuide and Wikileaf as well as its Hifyre retail data platform and its Spark Perks loyalty program.

Get the MJBizDaily Extraction Buyers Guide, now available.

This free resource offers practical business tips and valuable insights from cannabis extraction professionals to help plan or scale your extraction or processing operation with confidence.

Inside the MJBizDaily Extraction Buyers Guide:
  • In-depth guidance for planning a CBD extraction business
  • Best practices in sourcing solvents + solventless materials
  • Lessons in shopping for extraction/processing equipment
  • Tips for outfitting a facility for psilocybin mushroom extraction
  • And more!

“We see this as an example of the advantages of building, testing and hardening technology and systems in the federally legal Canadian market before deploying them to the U.S. and other emerging markets,” Fencott said.

Fire & Flower has licensed its brand and technology in the U.S. and is working toward a listing on the Nasdaq exchange.

Shares of the retailer trade on the Toronto Stock Exchange as FAF.