Hifyre Inc. entered into a definitive agreement to acquire Pineapple Express Delivery Inc. from World Class Extractions Inc. (CNSX:PUMP) and others for CAD 16 million on December 8, 2021. Total consideration for the transaction is approximately up to CAD 11.7 million, payable by way of assumption and repayment of approximately CAD 5.3 million in debt owed by Pineapple Express and the issuance of up to approximately 1,267,761 common shares of Fire & Flower, subject to Pineapple Express achieving certain performance-based milestones in the fiscal 2022 year. In connection with the transaction, World Class will receive approximately CAD 2 million in cash and up to approximately 273,081 consideration shares. Pineapple Express' revenue for the trailing 12-month period ended October 31, 2021 was approximately CAD 10 million. The transaction is subject to the satisfaction or waiver of customary closing conditions, including the approval of the Toronto Stock Exchange and approval by the shareholders of Pineapple Express at a shareholders' meeting to be convened in January 2022. The transaction is expected to close in the first quarter of 2022. Cassels acted for Pineapple Express Delivery and its controlling shareholder, World Class Extractions Inc. The Cassels' team was led by Jeff Durno and Andrea Breden.

Hifyre Inc. completed the acquisition of Pineapple Express Delivery Inc. from World Class Extractions Inc. (CNSX:PUMP) and others for CAD 10.4 million on January 21, 2022. As consideration for the purchase of Pineapple Express Delivery, Fire & Flower has assumed and repaid approximately CAD 5.15 million in debt owed by Pineapple Express Delivery and issued a total of 1,153,142 common shares of Fire & Flower ("Common Shares"), of which a total of 313,708 have been released and the remainder have been placed into escrow pending completion of customary working capital adjustments and subject to achievement of certain performance-based milestones in the fiscal 2022 year. Haywood Securities Inc. acted as exclusive financial advisor to Pineapple Express Delivery. Eric Foster of Dentons Canada LLP acted as legal advisor to Hifyre Inc.