Alcanna Provides COVID-19 Update; Postpones AGM
April 15 2020 - 7:06PM
Alcanna Inc. (the “Company” or “Alcanna”) (TSX: CLIQ) today
provided an update on the impact of the recent novel coronavirus
(“COVID-19”) pandemic on its business and operations.
COVID-19 UPDATE
Alcanna’s top priority is the health and safety
of our team members and our customers. Alberta, BC and Alaska have
all declared liquor and cannabis retail to be essential services
and the Company’s 283 stores in those markets remain open (the
Company’s Nova Cannabis store on Queen Street West in Toronto is
now operating on a click-and-collect format only as per Ontario
rules effective April 4, 2020).
Being an essential service comes with the
responsibility to be leaders in compliance of all physical
distancing, hygiene and sanitization practices. Alcanna has
implemented comprehensive measures in all of its stores to ensure
the health and safety of its customers and team members
including:
- Store hours have been reduced in all regions to allow team
members time to complete the enhanced cleaning and disinfecting
protocols, and have additional personal time to rest and
recover.
- All stores are following enhanced cleaning and disinfecting
protocols and have installed plexiglass shields at check-out
tills.
- Hand sanitizer is available at all stores for team members and
at higher volume stores for customers.
- Gloves are provided for all team members who wish to wear them,
and masks for all team members have been ordered and are scheduled
to be delivered to stores in the next few weeks.
- Physical distancing is enforced by signage and floor
markers.
- Team members and customers exhibiting any symptoms are not
permitted in stores.
- All Alcanna team members are subject to mandatory
self-isolation, travel restrictions and screening in accordance
with provincial and in the case of Alaska, federal, health
guidance.
- The Company has implemented a COVID-19 hotline for its team
members and an incident reporting protocol to identify, track and
respond to potential health concerns.
- On March 24, 2020 the Company instituted a $3 per hour COVID-19
pay bonus for all store level team members retroactive to March 8,
2020.
- In certain high-volume, large format locations, where
overcrowding could otherwise be an issue, the Company has limited
occupancy at peak times and provided directional arrows and one-way
aisles to guide the flow of customers.
A full list of measures taken by the Company to
ensure the safety of its customers and team members can be found on
the Company's website at alcanna.com/COVID-19.
BUSINESS UPDATE
Alcanna’s liquor and cannabis stores in all
regions experienced sales significantly higher than normal during
the last three weeks of March. This elevated demand subsided once
customers were assured by provincial and state governments that
liquor and cannabis stores were being classified as essential
services and would remain open.
While the Company’s operations have not been
materially impacted to date, the situation surrounding COVID-19
remains fluid and there are obvious risks for all businesses
associated with the pandemic - which the Company shares. The
Company continues to work closely with customers, government
officials, team members and business partners to respond to the
ever-changing situation. To date, supply of products remains
unaffected by COVID-19 as distillers, wineries, brewers and
cannabis licensed producers have also been declared essential
services. Despite many team members self-isolating for 10-14 days,
the Company has a full complement of team members working in stores
and has received over 500 applications for employment in recent
weeks.
The Company is focused on protecting its balance
sheet in response to this uncertainty. Inventory levels have been
carefully reduced and the capital expenditure plans for 2020 as
outlined in the Company’s Management Discussion and Analysis for
the year ended December 31, 2019 dated March 11, 2020 have been
temporarily suspended. The timing of each project will be
re-assessed in the context of the COVID-19 situation. The Company
has sufficient capital and credit availability to finance operating
requirements and for general corporate purposes.
ANNUAL AND SPECIAL MEETING OF
SHAREHOLDERS
Due to public health restrictions on mass
gatherings and in order to protect the health and safety of
Alcanna's shareholders, team members and guests, Alcanna has
decided to postpone its annual and special meeting of shareholders
to a later date; currently expected to be on or about June 25,
2020. Alcanna will provide notice in accordance with
applicable laws, of the revised meeting date, time, location and
any special procedures to be undertaken.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking
statements or information (collectively "forward-looking
statements") within the meaning of applicable securities
legislation. Forward-looking statements are typically identified by
words such as “continue”, “anticipate”, "will", "should", “plan”,
“intention”, and similar words suggesting future events or future
performance. All statements and information other than statements
of historical fact contained in this news release are
forward-looking statements. In particular, this news release
contains forward-looking statements pertaining to the impact that
COVID-19 may have on the Company’s operations and sales, growth and
capital expenditures plans, and capital and credit availability.
With respect to forward-looking statements contained in this news
release, the Company has made assumptions regarding, among other
things: the severity of COVID-19; the duration of the pandemic;
governmental, business or other actions which could include limit
our operations or mandates to provide products or services; our
suppliers ability to meet customer demand; the health of our
workforce; the ability to continue to attract new employees to meet
staffing needs in our stores, distribution facility and other
critical functions; the outlook for global economic conditions and
volatility in the credit and financial markets; consumer spending;
and the impact that COVID-19 will have on our customers, vendors,
suppliers, and other business partners.
Although the Company believes that the
expectations reflected in the forward-looking statements, and the
assumptions on which such forward-looking statements are made, are
reasonable, there can be no assurance that such expectations and
assumptions will prove to be correct. Readers should not place
undue reliance on forward-looking statements included in this news
release. Forward-looking statements are not guarantees of future
performance and involve a number of risks and uncertainties that
may cause actual performance and financial results to differ
materially from any estimates, forecasts or projections.
The forward-looking statements contained in this
news release are made as of the date hereof. Except as expressly
required by applicable securities legislation, Alcanna does not
undertake any obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. The forward-looking statements
contained in this news release are expressly qualified by this
cautionary statement.
ABOUT ALCANNA INC.
Alcanna is one of the largest private sector
retailers of alcohol in North America and the largest in Canada by
number of stores – operating 253 locations in Alberta, British
Columbia and Alaska. The Company also operates 31 cannabis retail
stores under the “Nova Cannabis” brand, with thirty locations in
the Province of Alberta and one in the Province of Ontario. With
revenues in excess of $800 million per year, Alcanna processes over
20 million individual retail transactions of beverage alcohol and
cannabis.
Alcanna's common shares and convertible
subordinated debentures trade on the Toronto Stock Exchange under
the symbols "CLIQ" and "CLIQ.DB", respectively.
Additional information about Alcanna Inc. is
available at www.sedar.com and the Company’s website at
www.alcanna.com.
For Further Information
James BurnsVice Chair and Chief Executive
OfficerAlcanna Inc. (587) 460-1026james.burns@alcanna.com
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