OTTAWA, April 12, 2018 /CNW/ - National Access Cannabis
Corp. ("NAC" or the "Company") (TSX VENTURE: NAC), Canada's best practices leader in delivering
secure, safe and responsible access to legal cannabis, and The
Second Cup Ltd. ("Second Cup") (TSX:SCU), Canada's second-largest retailer of speciality
coffee, today announced that they have established a strategic
alliance to develop and operate a network of NAC-branded
recreational cannabis dispensaries initially across Western Canada, expanding to include
additional provinces where legally permissible. NAC will apply for
licenses to dispense cannabis products and upon receipt, work with
Second Cup and applicable franchisees to leverage Second Cup's
extensive Canadian retail footprint to construct retail stores
carrying leading cannabis products, including products supplied by
CannaRoyalty Corp. (CSE: CRZ) (OTCQX: CNNRF) ("CannaRoyalty"),
California's largest legal
distributor of cannabis products. Conversion of any Second Cup café
to an NAC-branded recreational cannabis dispensary will be
conditional on obtaining a retail license from provincial
regulators and the approval of Second Cup and the applicable
franchisee and landlord.
"With exceptional quality real estate located across
Canada, our alliance with Second
Cup will offer consumers access to quality cannabis products and
the superior service in the comfortable setting they've come to
expect from NAC," said Mark Goliger,
Chief Executive Officer of National Access Cannabis. "This
relationship allows us to quickly expand our footprint in proven
high-traffic retail locations across Canada. With an initial focus on Western Canada, we'll look to work with Second
Cup to license select storefronts, utilizing our proven business
model to deliver secure, safe, and responsible access."
"NAC has developed a strong reputation as a leading operator in
the cannabis industry. This strategic relationship provides
Second Cup with a great opportunity to leverage our select real
estate assets to increase value for shareholders and franchisee
partners. At the same time, we remain focused on growing our Second
Cup brand and sales through continued product innovation and
expanding our network across Canada," said Garry
Macdonald, Second Cup's President & CEO.
In consideration of Second Cup agreeing to enter into this
strategic alliance, NAC has issued to Second Cup warrants to
purchase an aggregate of 5,000,000 common shares of the Company.
The warrants have an exercise price of $0.91 per common share and expire on April 12, 2023. The issuance of the warrants
remains subject to requisite regulatory approval, including the
approval of the TSX Venture
Exchange.
About National Access Cannabis
National Access Cannabis is Canada's best practices leader in delivering
secure, safe, and responsible access to legal cannabis. Through its
Canada-wide network of care
centres, NAC enables patients and the public to gain knowledge and
access to Canada's network of
authorized Licensed Producers of Cannabis. National Access Cannabis
Corp. is listed on the TSX Venture Exchange under the symbol (TSXV:
NAC). For more information, visit
www.nationalaccesscannabis.com
About Second Cup Coffee Co.™
Founded in 1975, The Second Cup Ltd. is a Canadian specialty
coffee retailer operating franchised and company owned cafes across
Canada. The company's vision is to be the Canadian specialty
coffee brand of choice across Canada, committed to superior quality,
innovation and profitable growth. For more information,
please visit www.secondcup.com or find the company on Facebook
and Twitter.
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,
statements concerning future developments, including the
development of a strategic alliance between the Company and Second
Cup, the Company's plans to expand its business relationship with
CannaRoyalty, the application for licenses to dispense cannabis
products and the conversion of select Second Cup cafes into
recreational cannabis dispensaries. Although the Company and Second
Cup believe 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 neither the Company nor
Second Cup can 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 could
differ materially from those currently anticipated due to a number
of factors and risks. These include, but are not limited to,
risks associated with general economic conditions; failure
to obtain inability to licenses to dispense cannabis products;
failure to obtain the consent of applicable landlords and
franchisees to the conversion of Second Cup cafés into recreational
cannabis dispensaries; regulatory resistance in certain provinces
to opening privately owned and operated recreational cannabis
dispensaries; adverse industry events; marketing costs; loss of
markets; future legislative and regulatory developments involving
cannabis; inability to access sufficient capital from internal and
external sources, and/or inability to access sufficient capital on
favourable terms; the medical and potential cannabis industry in
Canada generally; income tax and
regulatory matters; the ability of the Company and/or Second Cup to
implement their business strategies; competition; crop failure;
currency and interest rate fluctuations; and other risks.
The Company and Second Cup caution that the foregoing list of
risks and uncertainties is not exhaustive.
In addition, the reader is cautioned that historical results
are not necessarily indicative of future performance. The
forward-looking statements and information contained in this news
release are made as of the date hereof and neither the Company nor
Second Cup undertakes any 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.