'Excited to make this move in Sask.': Jimmy's Cannabis Shop chain sold for $13M
New owner Fire & Flower says it's interested in expanding business further
A chain of marijuana shops across Saskatchewan has been purchased by one of Canada's largest pot companies.
On Thursday, Fire & Flower announced it is buying Prairie Sky Cannabis — owner of the Jimmy's Cannabis Shop chain of retail stores — for $13 million. The deal includes the company's four locations in Battleford, Estevan, Martensville and Moosomin.
"We're excited to make this move in Saskatchewan," said Nathan Mison, vice-president of government and stakeholder relations for Fire & Flower.
"We look forward to opportunities to continue to make moves to show the government our commitment to the province."
After the acquisition, Fire & Flower will have 17 stores open across the country, with two of them located in North Battleford and Yorkton.
The company credits Saskatchewan's hands-off approach to marijuana distribution as one of the province's main selling points. While many provincial governments act as a wholesaler between marijuana growers and retailers, Saskatchewan stays out of the way.
"Saskatchewan has done a very good job when it comes to their cannabis regulations," said Mison.
The company is not ruling out further expansion. Mison noted only 27 pot stores have opened in Saskatchewan, while 51 licences were issued in a provincial lottery last year.
"There's opportunities to see if there's a margin to continue to grow our foothold and invest in the province," he said.
Fire & Flower already has a marijuana distribution centre in Saskatoon and credits that with its ability to consistently provide supply to its stores.
While demand in Canada's marijuana market has cooled since the early days of legalization, Mison is confident the future remains bright for the industry.
"We are very encouraged by the environment and we think there's lots of opportunity to continue to see growth in the retail environment and the cannabis sector."
The four Jimmy's Cannabis Shop stores will be rebranded as Fire & Flower locations.
The deal included a cash settlement of $6.5 million, as well as $6.5 million dollars in shares of the company.