Since 2020, Fire & Flower has been building a strong relationship with Couche-Tard, the owner of Circle K convenience stories and gas stations. Early on in the partnership, Fire & Flower opened two dispensaries adjacent to Circle K locations in Alberta, Canada. Those openings were one example of the long game to normalize cannabis as part of a broader corporate portfolio. 

Couche-Tard just stepped up its game with a $38-million exercise of a warrant on Fire & Flower common shares. The transaction increases Couche-Tard’s ownership stake in Fire & Flower from 14% to 35%.

“We are excited to further strengthen our relationship with Alimentation Couche-Tard, whose unwavering support has enabled Fire & Flower to execute on our technology-focused differentiation strategy and to ultimately achieve our vision to deliver cannabis to the world,” Fire & Flower CEO Trevor Fencott said in a public statement.

Along with debt service, the proceeds from this transaction “will be used for general corporate purposes, working capital needs and to fund further strategic initiatives of [Fire & Flower],” according to a press release announcing the news.

Couche-Tard holds further warrants that are exercisable later this year, up until June 30, 2023. Along with other participation rights written into the 2020 agreement with Fire & Flower, Couche-Tard may have the opportunity to secure 50.1% ownership in the cannabis company.

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