CALGARY, April 17, 2019 /CNW/ - Westleaf Inc. (TSX-V:
WL)(OTCQB: WSLFF) ("Westleaf"), is pleased to announce it
has exercised its previously announced option (the "Option")
to purchase all of the issued and outstanding shares of 102053012
Saskatchewan Ltd. ("102"), which operates a cannabis retail
store located at 720 Broadway Avenue, Saskatoon.
Highlights
- Premium Location: The 720 Broadway Avenue store is in a
high density, shopping-friendly neighborhood, situated in the
middle of the city's densest commercial and entertainment district
and is also close to the University of
Saskatchewan, the largest post-secondary institution in the
province;
- Well Defined and Regulated Market: Saskatoon is the 17th largest city
in Canada with around 300,000
people in the metropolitan area. The Saskatchewan Liquor and Gaming
Authority (the "SLGA") has approved seven licenses for the
Saskatoon market, with Westleaf
owning one of such locations upon the anticipated closing of the
Option, while having a previously announced option to purchase a
second location.
- Truly Vertically Integrated Company – Westleaf is a
vertically integrated company in the Canadian cannabis industry,
with assets owned and under development across each vertical of the
business, including cultivation, extraction, processing &
manufacturing, distribution and wholly owned retail.
Pursuant to the Option purchase agreement, upon delivery of all
closing deliverables, which is expected to occur today, Westleaf
will acquire the shares of 102 for an aggregate price of
$690,000, upon which 102 will become
a wholly owned subsidiary of Westleaf. The purchase price for the
102 shares will be paid by: (i) the issuance of an aggregate of
315,789 common shares in the capital of Westleaf ("Common
Shares") at a deemed value of $1.71 per Common Share; and (ii) a cash payment
$150,000. Under the Option purchase
agreement, Westleaf was eligible to purchase and transfer the store
once 102 (as license holder) received approval from the SLGA.
The store, which was built out as part of a license agreement
with Westleaf, will operate under the Prairie Records retail
banner and will be open for business on April 17, 2019. The store's grand opening
celebration is expected to occur on April
20, 2019, the day that is synonymous with the legalization
of cannabis.
"While Prairie Records creates a unique and totally
different cannabis retail experience, we do want to recognize the
day that activists used to bring attention to the push for
legalization of cannabis which has gone on for many years," noted
Adam Coates, Chief Commercial
Officer at Westleaf. "We are excited to open our doors in
Saskatoon providing the community
with a unique retail option that celebrates the relationship
between cannabis and music."
"Saskatchewan is proving to be
a strong cannabis retail market as the sector continues to evolve
and mature," said Scott Hurd,
President and CEO of Westleaf. "Here, we have the opportunity to
deal directly with licensed producers in purchasing inventory, we
are able to sell online across the province through our e-commerce
platform, and the ratio of stores to market size make Saskatoon an ideal location to operate
cannabis retail."
Prairie Records currently has a store operating in
Warman, Saskatchewan,
approximately 20 minutes from Saskatoon, as well as province-wide online
sales at www.prairierecords.com. Westleaf holds an additional
option to purchase a second store in
Saskatoon.
About Prairie Records
Focusing exclusively on densely populated neighborhoods, high
traffic areas, and tourist destinations, Prairie Records
retail stores will be situated premium retail locations across the
country. The foundation of the retail concept is ingrained with a
desire to create a unique cannabis purchasing experience through
tactile in-store features and product offerings that highlight the
relationship between music and cannabis. Westleaf continues to be
committed to becoming a leader in the Canadian cannabis retail
market.
About Westleaf Inc.
Westleaf is a vertically integrated cannabis company focused on
innovative retail experiences and engaging cannabis brands as well
as cultivation, production and extraction of cannabis products.
Westleaf is rolling out a national retail footprint for its retail
concept Prairie Records, with stores planned for
British Columbia, Alberta, Saskatchewan and potentially Ontario. The retail concept leverages the
instinctual tie between recreational cannabis and music and
redefines the cannabis purchasing experience. Westleaf also has two
significant production facilities under construction, with
completion anticipated to occur in 2019. For more information,
please visit http://www.westleaf.com or www.prairierecords.ca.
Neither TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this release
Cautionary Statements
This news release contains "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking
statements") within the meaning of the applicable Canadian
securities legislation. All statements, other than statements of
historical fact, are forward-looking statements and are based on
expectations, estimates and projections as at the date of this news
release. Any statement that involves discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions, future events or performance (often but not always
using phrases such as "expects", or "does not expect", "is
expected", "anticipates" or "does not anticipate", "plans",
"budget", "scheduled", "forecasts", "estimates", "believes" or
"intends" or variations of such words and phrases or stating that
certain actions, events or results "may" or "could", "would",
"might" or "will" be taken to occur or be achieved) are not
statements of historical fact and may be forward-looking
statements. In this news release, forward-looking statements
relate, among other things, to: the closing of the Option; timing
and opening of the new retail store located at 720 Broadway Avenue,
Saskatoon and the planned rollout
of other retail locations; timing and completion of Westleaf's
production facilities; and the business and operations of Westleaf.
Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable, are
subject to known and unknown risks, uncertainties, and other
factors which may cause the actual results and future events to
differ materially from those expressed or implied by such
forward-looking statements. Such factors include, but are not
limited to: satisfaction of all conditions to the exercise and
closing of the Option; timing and completion of construction of
retail locations; review of facilities by Health Canada and receipt
of a licensee from health Canada
in respect of Westleaf's production facilities; future
legislative and regulatory developments involving cannabis; the
ability of Westleaf to implement its business strategy; inability
to access sufficient capital from internal and external sources,
and/or inability to access sufficient capital on favorable terms;
the labour market generally and the ability to access, hire and
retain employees; the cannabis industry in Canada generally; general business, economic,
competitive, political and social uncertainties; and the delay or
failure to receive board or regulatory approvals. There can be no
assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on the forward-looking statements and
information contained in this news release.
The forward-looking statements and information contained in
this news release are made as of the date hereof and Westleaf
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.
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SOURCE Westleaf Inc.