- The acquisition of New Leaf Emporium Inc. will extend the
already robust footprint of NAC into Saskatchewan's retail cannabis industry,
adding a Moose Jaw location to
NAC's 21 store portfolio (pending regulatory approval).
- Under the terms of the Share Purchase and Sale Agreement,
the total purchase price payable for the New Leaf Emporium Inc.
shares is $1.6 million, comprised of
a cash payment of $1.2 million and
the issuance of 649,880 common shares of NAC, which have an
aggregate dollar value of approximately $400,000.
- With 21 stores in Alberta
and Manitoba, NAC is larger by
store count than any private or public cannabis retailer in
Canada, according to provincial
licensing statistics.
TORONTO, Jan. 16, 2019 /CNW/ - National Access
Cannabis Corp. ("NAC" or the "Company") (TSXV: META),
is pleased to announce that its wholly owned subsidiary, NAC
Prairies Ltd. ("NAC Prairies"), has entered into a share
purchase agreement in respect of an arm's length transaction with
the shareholders of New Leaf Emporium Inc. ("New Leaf
Emporium"), whereby NAC Prairies will acquire all of the issued
and outstanding shares of New Leaf Emporium (the "New Leaf
Emporium Shares"). Under the terms of the share purchase
agreement, the total purchase price payable for the New Leaf
Emporium Shares is $1.6 million,
comprised of a cash payment of $1.2
million from NAC Prairies and the issuance of 649,880 common
shares of NAC, which have an aggregate dollar value of
approximately $400,000 (the
"Purchase Price"). Additionally, NAC Prairies will reimburse
New Leaf Emporium for certain expenses associated with the build
out of the Moose Jaw premises on
standard commercial terms. The Purchase Price and New Leaf Emporium
Shares have been placed into escrow and will be released to the
respective parties upon the Saskatchewan Liquor and Gaming
Authority providing NAC with approval to operate the New Leaf
Emporium premises in Moose Jaw,
Saskatchewan, following which NAC Prairies will own all of
the issued and outstanding shares of New Leaf Emporium.
"We're growing our footprint into Saskatchewan," said Mark Goliger, CEO of NAC. "We've worked
diligently to be the national leader in cannabis retail, having
opened 21 stores to date in the complex regulatory markets of
Alberta and Manitoba, and with our experience,
Saskatchewan is an ideal expansion
market for NAC. We have what's required: great relationships with
Licensed Producers, existing e-commerce infrastructure, and retail
operator know-how. Moose Jaw is
the right market to start, with the New Leaf Emporium store
operational today as one of only 2 stores serving a population of
35,000. We're ready to lead the way for customers in three
provinces through a proven model of safety, education and customer
service while delivering sustained returns and increased growth for
our shareholders."
Pending regulatory approval, NAC will immediately take full
operation of the New Leaf Emporium retail cannabis store in central
Moose Jaw at the corner of Main
and Athabasca and offer online
sales throughout Saskatchewan.
The Company currently has 21 cannabis retail locations open in
total, split as follows:
- 14 NewLeaf Cannabis™ stores in Alberta
- 7 Meta Cannabis Supply Co.™ stores in Manitoba
The Company opened a new Meta Cannabis Supply Co. location in
Morden, Manitoba on Friday, January 11th, for a total of
21 stores across Canada, with an
additional seven retail stores planned to open throughout
Manitoba by the end of Q2
2019.
Previous announcements regarding NAC's retail store expansion
may be found through the following links:
January 10, 2019, National Access
Cannabis Corp. Provides Sales Update for Retail Cannabis Operations
since Federal Legalization
November 21, 2018, National Access
Cannabis becomes Canada's largest
private recreational cannabis retailer by store count, leading the
country with 17 stores
May 15, 2018, NAC Launches Meta
Cannabis Supply Co., a Premium Retail Cannabis Store Brand, for the
Canadian Recreational Market
About National Access Cannabis Corp.
NAC delivers secure, safe, and responsible access to legal
cannabis in Canada. Through
its Canada-wide network of medical cannabis clinics, partner
pharmacies, NAC Bio's clinical research division, Meta Cannabis
Supply Co. and NewLeaf Cannabis recreational cannabis retail
stores, NAC enables patients and the public to gain knowledge and
access to Canada's network of authorized Licensed
Producers of cannabis. NAC is listed on the TSX Venture Exchange
under the symbol (TSXV: META).
For more information, visit:
www.nationalaccesscannabis.com
www.metacannabis.com
www.newleafcannabis.ca
www.nacbio.com
www.nacmedical.com
Cautionary Statements
This news release contains forward looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward looking
statements or information. Forward-looking statements and
information in this news release includes, but is not limited
to, the release of the Purchase Price and New Leaf
Shares from escrow, New Leaf receiving a cannabis retail permit
granted by the Saskatchewan Liquor and Gaming Authority in respect
of its premises in Moose Jaw,
Saskatchewan, NAC's anticipated expansion into Saskatchewan, the opening dates for NAC
cannabis retail stores, the number of NAC cannabis retail stores
expected to open and/or become licensed, and the Company's growth
plans in Manitoba. Although the
Company believes that the expectations and assumptions on
which the forward-looking statements and information are based are
reasonable, undue reliance should not be placed on the
forward-looking statements and information because the Company
cannot give any assurance that they will prove to be
correct. Since forward looking statements and information
address future events and conditions, by their very nature they
involve inherent risks and uncertainties. Actual results and
developments may differ materially from those that are currently
contemplated by these statements depending on, among other things,
risks relating to the ability to obtain or maintain licenses to
retail cannabis products; future legislative and regulatory
developments involving cannabis; the ability of the Company to
implement its business strategy; inability to access sufficient
capital from internal and external sources, and/or inability to
access sufficient capital on favourable terms; the labour market
generally and the ability to access, hire and retain employees; and
the cannabis industry in Canada
generally. The Company cautions that the foregoing list of risks
and uncertainties is not exhaustive.
The forward-looking statements and information contained in
this news release are made as of the date hereof and the Company
undertakes no obligation to update publicly or revise any
forward-looking statement or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE National Access Cannabis Corp.