Fire & Flower Holdings Corp (FAF)

[FUNMAN]

9K traded since the first 10 minutes ... Volume(Heavy Day) Today's volume of 260,899 shares is on pace to be much greater than FFLWF's 10-day average volume of 85,015 shares.

November 02, 2020 1:09pm ET



Puting the news in perspective, someone plowed into FFLWF in the first few minutes on the news. The BIDs won't relent, and the ASKs just don't care.

The PPS needs a few more people to be excited by the news.

RE The acquisition's funding. "Pursuant and subject to the terms of the Share Purchase Agreement, as consideration the Company will issue to the shareholders of Friendly Stranger up to an aggregate of 31,117,750 common shares of FFHC (the “Consideration Shares”)."


The devil is in the details. I say this is "good dilution".

But this is a crazy low interest loan to the seller. What gives? - FUNMAN

Concurrently with the entering into of the Share Purchase Agreement, the Company entered into a loan agreement with Friendly Stranger (the “Loan Agreement”). Pursuant to the terms of the Loan Agreement, Friendly Stranger may borrow from the Company up to an aggregate of $2,000,000 (the “Loan”), such amount to be used for the purchase of certain licensed cannabis retail stores operating in the province of Ontario and as contemplated in the Share Purchase Agreement. Subject to the terms of the Loan Agreement, the Loan matures on the earlier of March 31, 2021 and the date there is a change of control of Friendly Stranger (which will occur upon the completion of the Transaction). The Loan is secured against the assets of Friendly Stranger and bears interest at a rate of 1.0% per annum, which rate will be increased to 13.0% per annum in the event the Share Purchase Agreement is terminated prior to the closing of the Transaction.