The cannabis company is approaching a public launch
As part of a plan to list on the US Nasdaq exchange, Fire & Flower, the Canadian cannabis retail chain, has reportedly begun consolidating its shares. According to a press release yesterday, the share consolidation is taking place on a 10-to-1 basis.
Trevor Fencott, CEO of Fire & Flower, said in the release that taking such an action to achieve a Nasdaq listing would allow the company to “expand its shareholder base which, in turn, provides the Company with increased flexibility and enhanced liquidity to accelerate its strategic growth plans.”
For the time being, the company is already part of the Toronto Stock Exchange listing, where it currently trades as FAF. Its shares will continue to be listed on the TSX, and consolidation is expected to take effect in the next few days. The company said that the listing is still subject to approvals but that it expects there will not be any issues. The Toronto-based retailer recently reported operating nearly 100 physical stores in Canada.
The listing appears to be part of the company’s recent moves, as earlier this year, Fire & Flower announced a brand and technology licensing agreement in the US. When a company in the marijuana industry decides to go public, it is because it intends to make its financial assets available to a pool of investors who can trade them. It is also worth noting that going public means making a higher profit through investments made by third parties.