Marijuana retailer Fika’s winning Fire & Flower bid was CA$36 million

MJBizCon 2023 tickets are now on sale! Discover the business solutions to elevate your cannabis retail game. Buy your ticket today.

Canadian marijuana retail company Fika Cannabis bid 36 million Canadian dollars ($26.6 million) at auction to acquire retail chain Fire & Flower Holdings, according to a report filed by Fire & Flower’s court-appointed insolvency monitor.

The $36 million purchase price “is CA$12.3 million more than the value of the stalking horse bid” put forward by Fire & Flower’s majority shareholder, Alimentation Couche-Tard, according to the Aug. 26 report by monitor FTI Consulting Canada.

That stalking-horse bid was opposed by a group of other Fire & Flower shareholders, although a judge rejected their counterproposal in July.

Fika’s winning bid for Fire & Flower was announced earlier this month, but the value was not disclosed.

FTI Consulting called Fika’s offer “the best outcome for (Fire & Flower’s) business” and said it left money on the table for some of the insolvent retailer’s creditors.

The CA$36 million bid “is sufficient to repay all of (Fire & Flower’s) secured liabilities and leaves a significant recovery available to (the company’s) unsecured creditors,” according to FTI Consulting’s report.

Since the deal offers a going-concern solution to Fire & Flower’s insolvency, the monitor believes “a substantial number of F&F’s trade suppliers will continue to contract with (Fire & Flower) … and it is expected that a substantial number of the employees will be provided offers to continue their employment with F&F following the implementation of the transaction.”

Fika’s deal for Fire & Flower is subject to court approval, with a proposed closing date of Sept. 8.

It is still unclear exactly which Fire & Flower assets Fika is buying, and Fika has not responded to interview requests from MJBizDaily.

Fire & Flower, one of the biggest cannabis retailers in Canada, entered creditor protection in June.

Solomon Israel can be reached at