Finance

Fire & Flower Shares Drop After Financial Advisor Hired

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By Robb M. Stewart


Fire & Flower’s shares fell sharply Monday after the cannabis retailer said it had hired a financial advisor to assist it with reviewing strategic options, including alternatives for financing.

In morning trading, the shares were 42% lower at C$0.49, widening the year-to-date decline to 58%.

The Canadian company, which is part-owned by convenience-store operator Alimentation Couche-Tard, didn’t disclose the name of the advisor or a timeframe for the review in a brief statement late Friday. Earlier in the month, Fire & Flower said it would need additional financing and was actively looking at ways to raise capital to fund its operations, meet growth targets and continue as a going concern.

The company recorded a widened loss in the first three months of the year after booking an impairment charge, though higher retail sales helped lift overall revenue 5.3% from a year earlier.

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Write to Robb M. Stewart at robb.stewart@wsj.com

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