Fire & Flower Holdings
Cannabis

Fire & Flower Holdings Corp (OTCMKTS:FFLWF) Flirting With Make Or Break Levels

Shares of Fire & Flower Holdings Corp (OTCMKTS:FFLWF) have pulled back from all-time highs, in what could turn out to be a minor correction on investors taking profits. The stock has been on an excellent run in recent weeks, depicted by a surge in share price as well as trading volume.

Catalysts and Share Price Analysis

A spike in share price activity follows the announcement of a merchandise boss as the company moves to strengthen its sales prospects. In addition, the company has moved to enhance its growth prospects in the multi-billion industry with the signing of agreements with two applicants selected by the Alcohol and Gaming Commission of Ontario to apply for cannabis real, operator license.

In addition, the stock’s sentiments have also improved, in recent weeks, on the company confirming completion of a previous qualifying transaction as well as the conversion of subscription receipts. Recent development did help strengthen investor confidence in the stock resulting in a spike in the share price to highs of $1.5 a share.

FFLWF Daily Chart

However, the stock has come down tumbling back to the $1.23 mark in what could be interpreted as a minor correction. For the stock to continue powering high, it needs to hold above the $1.20 mark on any sell-offs. Below the critical support level, the stock could drop further as part of a bear trend.

About Fire & Flower Holdings

Through its wholly owned subsidiary, Fire & Flower casts itself as an independent cannabis retail chain. The company specializes in offering cannabis products and accessories to adult use market in provinces where sale by private retailers is legal.

The company has also secured licenses to operate seven cannabis retail stores in Alberta’s as well two retail stores in Saskatchewan. It is also pursuing additional licenses to operate stores in British Columbia Manitoba and Ontario.

Recent developments

In a bid to strengthen sales efforts, the company has confirmed the appointment of Rob Cherry as the new general Merchandise manager. Cherry is tasked with the responsibility of leading the company’s purchasing and merchandising departments.

“Rob’s strong experience merchandising with large retailers” will be beneficial to the company, which plans to expand “too many new communities in 2019,” Fire & Flower CEO Trevor Fencott said in the statement.

Conversely, the company has entered into agreements with some applicants, approved to apply for cannabis retail, operator licenses in Ontario. The signing of the agreements paves the way for the company to develop strategic partnerships as it eyes cannabis opportunities in Ontario. The operators that the company has signed deals with have already applied for retail operator license as well as retail store authorization applications.

In February the company completed an announced qualifying traction with Fire & Flower Inc., as well as the conversion of subscription receives issued in connection of a $36.3 million private placement offering.

“In connection with the transaction, Fire & Flower and the Company have satisfied the escrow release conditions of the Offering. The escrowed funds, net of the outstanding cash commission and expenses payable to the agents (equal to approximately $1,000,000), has been released to and as directed by the Company.” Fire & Flower Holdings in a statement.

Pursuant to the transaction, Fire & Flower acquired all outstanding shares of Fire & Flower Inc. and issued its shares to Fire & Flower shareholders.

Bottom Line

Fire & Flower is still in the early stages, as a cannabis company, in the burgeoning sector. However, the company has moved to strengthen its prospects in the highly competitive business through the signing of strategic deals as it seeks to expand its footprint into some of the biggest markets.

Ontario is one of the markets the company has set sights on as part of its expansion plan. Expansion into Ontario should help supplement the company’s efforts in Alberta where it has licenses to operate seven cannabis stores.

The appointment of a merchandising officer also affirms the company’s push for revenues in the multi-billion-dollar industry. While price gains in the recent past have coincided with an uptick in market swings, Fire & Flower might have to serve new catalysts if it is to continue surging, especially after the recent pullback.

We will be updating our subscribers as soon as we know more. For the latest updates on FFLWF, sign up below!

Disclosure: We have no position in FFLWF and have not been compensated for this article.

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Fire & Flower Holdings Corp (OTCMKTS:FFLWF) Flirting With Make Or Break Levels
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