Adult-use cannabis retailer Fire & Flower Holdings entered right into a definitive settlement to purchase rival retailer operator Friendly Stranger Holdings.

Under the deal, if it’s permitted, Toronto-based Fire & Flower would situation roughly 31.1 million shares to Friendly Stranger shareholders, valuing the proposed transaction at about 24.6 million Canadian {dollars} ($18.1 million).

Fire & Flower stated that after the deal closes, it expects to have 66 shops, together with 18 in Ontario and a further 9 in queue for licensing.

“The acquisition of Friendly Stranger is transformative for Fire & Flower and is a product of our financially disciplined approach to aggregation in the sector,” CEO Trevor Fencott stated in a information launch.

Fire & Flower additionally stated it plans to mortgage Friendly Stranger as much as CA$2 million.

The acquisition is predicted to shut within the fourth quarter of this fiscal 12 months.

Shares of Fire & Flower commerce on the Toronto Stock Exchange as FAF.

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