FFLWF stock is up marginally this morning after Fire & Flower Holdings Corp (TSX:FAF) (OTCPK:FFLWF) reported its financial results for the fiscal second quarter.
Revenues Jump
The cannabis industry has gone through a lot of churns over the past months, and many of the stocks belonging to well-known companies have nosedived significantly during this period. However, companies have not stopped from trying to expand their businesses, and that is what was announced by Canadian cannabis retailer Fire & Flower Holdings Corp.
Today, the company released its financial results from the second quarter and also marked out its plans with regards to its convenience stores. In Q2 2019, the company managed to generate revenues of $11.1 million as opposed to $9.5 million in the same quarter last year.
Out of the total revenues generated by Fire & Flower, $9.7 million was generated through sales of accessories related to cannabis. The company has also projected that the sales should increase in the coming quarters due to the licensing deals that it has signed. The Chief Executive Officer of the company, Trevor Fencott, spoke about the financial results.
At the time of writing, FFLWF stock is up 1% at $0.90.
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He said, “Fire & Flower's financial and operational results for the quarter demonstrate that the company is continuing to build the infrastructure required to support the rapid growth of our retail network and deliver on our objectives.”
The company has announced that it is going to usher in a new data-driven era in which it will morph into a ‘retail 2.0’ company. To that end, the strategic investment in the company by the convenience store owners Alimentation Couche-Tard (TSX:ATD.A) (OTCPK:ANCUF) is the key factor. The deal is a significant one since Couche-Tard got a controlling stake in Fire & Flower owing to it. However, more importantly, the deal is going to inject as much as $380 million into Fire & Flower.
Reports suggest that Couche-Tard is going to help the company with regards to innovations and commercialization of new products in the near future. The association with such a company will help Fire & Flower to speed up its growth process.
FFLWF stock has lost over 25% over the past couple of weeks.
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Featured image: DepositPhotos © Alexstar
