Marijuana retailer Fire & Flower looks to raise CA$25 million

Canadian cannabis retailer Fire & Flower Holdings aims to raise up to 25 million Canadian dollars ($18 million) via two private placements, the company said Monday.

The announcement comes as the number of private-sector recreational cannabis stores continues to grow in key Canadian markets, including British Columbia, Alberta and Ontario.

Some Fire & Flower executives and officers are investing CA$1 million in the offerings, including CA$850,000 from CEO Trevor Fencott.

The private placements, which consist of convertible debentures and subscription receipts priced at CA$1,000 apiece, “will strengthen our financial position and enable Fire & Flower to continue to deliver upon our growth plans for cannabis retail stores across Canada,” Fencott said in a news release.

Proceeds from the offerings “will be used for working capital and other general corporate purposes of the Company and its subsidiaries, including repayment of existing debt that is not converted into shares prior to maturity” as well as continuing to expand into new cannabis retail markets.

The offerings are expected to close around April 30.

Edmonton, Alberta-based Fire & Flower owns or has stakes in licensed cannabis stores in Alberta, Manitoba, Ontario, Saskatchewan and the Yukon.

Fire & Flower trades on the Toronto Stock Exchange as FAF.