TORONTO, June 26, 2020 /CNW/ - Meta Growth Corp. (TSXV: META) ("Meta Growth", "META" or the "Company"), a leading Canadian recreational cannabis retailer, today announced that it has sold its Canadian medical clinics business unit to The Clinic Network Canada Inc. ("TCNC") for total consideration of up to $800,000, of which $500,000 in cash was received on transaction close, with an earn-out of up to $300,000 within 12 months after close paid in common shares of TCNC.
Given the continued expected growth of the Canadian recreational cannabis retail market, particularly within the province of Ontario, META's strategic focus has shifted from medicinal to recreational cannabis. The divestiture of its Canadian medical clinics completes the disposition of its portfolio of medicinal cannabis assets, having recently sold its Australian medicinal cannabis clinics, as well as its Canadian pharmacy business unit. These divestitures have allowed the Company to monetize non-core assets into total consideration of up to $2,800,000 to assist in funding its recreational cannabis expansion initiatives.
About The Clinic Network
TCNC is a private company based in Toronto and one of the largest providers of out-of-hospital pain management services in Canada. The company owns and operates 17 community-based clinics across Canada, where its team of health professionals work together to help patients using a variety of interdisciplinary approaches to treat chronic pain, including medicinal cannabis. As one of the leading suppliers of medical cannabis services in Canada, TCNC has developed an expertise in harm reduction and medicinal cannabis as an alternative to traditional opioids.
For more information on The Clinic Network, visit:
The Clinic Network
Kim Wei, Chief Strategy Officer
About Meta Growth
Meta Growth is a leader in secure, safe and responsible access to legal recreational cannabis in Canada. Through its Canada-wide network of Meta Cannabis Co.™, Meta Cannabis Supply Co.™ and NewLeaf Cannabis™ recreational cannabis retail stores, Meta Growth enables the public to gain knowledgeable access to Canada's network of authorized Licensed Producers of cannabis. Meta Growth is listed on the TSX Venture Exchange under the symbol (TSXV: META).
For more information on Meta Growth, visit:
Mark Goliger, Chief Executive Officer
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.
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 potential earn-out of up to $300,000 pursuant to the sale of the Company's medical clinics to TCNC. 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, whether the earn-out targets are achieved, risks relating to the effects of the COVID-19 pandemic on the economy, the public markets and the Company's business; the ability of the Company to submit additional store authorization applications and receipt of related Retail Store Authorizations; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; general business, economic, competitive, political, regulatory and social uncertainties; the delay or failure to receive regulatory approvals and the recreational 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.
SOURCE Meta Growth Corp.
For further information: Media Inquiries: Matt Ryan, VP of Marketing, Meta Growth, Tel: 647-633-9330, [email protected]