Adam Jackson
Insolvent Fire & Flower Holdings Corp. wrapped up its court-supervised auction, naming Canadian cannabis retail chain FIKA Cannabis as the winning bidder, the company announced Thursday.
The news comes after Fire & Flower, which was a major player in the Canadian cannabis scene, received creditor protection over the summer after the company kept losing money.
Circle K gas stations owner and affiliate Alimentation Couche-Tard Inc. stepped in to provide a loan of C$9.8 million to fund the CCAA proceedings and meet the company’s short-term working capital needs. The TSX also delisted the company from its exchange.
The online auction took place on Aug. 15, headed by FTI Consulting Canada Inc., which played the role of the court-appointed overseer. The bid was in line with Fire & Flower’s sale process approved by the court.
Upon emerging as the victor, FIKA entered into a subscription agreement with Fire & Flower, with eye on a Sept. 8 closing date. It is waiting for a nod from the Ontario Superior Court of Justice and a few other regulatory green lights.
Fire & Flower said it is gearing up to step before the court for authorization of the transactions in the agreement.
“The company intends to appear before the Court as soon as possible to seek an order approving the transactions contemplated by the Subscription Agreement,” it said in a statement.
In a related development, the company’s C-suite saw a switch up. John Chou stepped down from his chief financial officer position, with John Rim stepping in as the interim replacement.
