Cannabis retail chain Fire & Flower to be cut from Toronto Stock Exchange

Financially distressed Canadian cannabis retail company Fire & Flower Holdings is being delisted from the Toronto Stock Exchange after filing for creditor protection earlier this month.

The delisting of the company’s shares will take place July 14, according to a news release.

Fire & Flower, which operates 90 cannabis stores across Canada, was granted an initial creditor protection order by a Canadian court on June 5 after announcing a strategic review in late May.

It is the latest in a string of troubled Canadian cannabis companies to turn to the Companies’ Creditors Arrangement Act (CCAA) to resolve its financial challenges.

Fire & Flower said Thursday that the court-ordered stay period under CCAA had been extended until Sept. 1.

The court also approved a key employee retention plan (KERP), with a “priority charge against the company’s assets for security for payments under the KERP,” among other approvals.

Meanwhile, Suzanne Poirier, who is also senior vice president of operations at convenience store giant and Fire & Flower backer Alimentation Couche-Tard, has resigned from the Fire & Flower board of directors.

When it announced its CCAA filing on June 6, Fire & Flower said that its board of directors “will remain in place.”

Couche-Tard has given Fire & Flower a debtor-in-possession loan of 9.8 million Canadian dollars ($7.4 million) in connection with the CCAA proceedings.

Documents related to Fire & Flower’s CCAA proceedings are available on the website of court-appointed monitor FYI Consulting Canada.

Shares of Fire & Flower are still listed as FAF on the TSX.

Source: https://mjbizdaily.com/cannabis-retail-chain-fire-flower-to-be-cut-from-toronto-stock-exchange/