- New corporate identity aligned with the Company's strategy to be the preeminent cannabis retailer in Canada.
- Agreement to sell non-core medical cannabis clinics anticipated to provide $4 million in proceeds to help fund the Company's growth in recreational cannabis retail.
TORONTO, Nov. 1, 2019 /CNW/ - National Access Cannabis Corp (TSXV: META) d/b/a Meta Growth ("Meta Growth", "META" or "the Company"), Canada's largest publicly traded recreational cannabis retailer by revenue1, today announced that it has registered "Meta Growth" as a business name and will begin to conduct business under the Meta Growth name effective immediately, with the formal name change to Meta Growth Corp. subject to shareholder approval (the "Name Change"). The Company also announced that it has entered into a definitive agreement (the "Agreement") to sell the Company's portfolio of medical cannabis clinics from National Access Canada Corporation to Evergreen Pacific Insurance Corporation ("Evergreen Pacific") for $4 million in cash, anticipated to close on November 30, 2019.
Business Name Change
The Meta Growth corporate identity embodies the Company's strategy to be the preeminent cannabis retailer in Canada. The new corporate logo visually represents META's multidimensional commitment to cannabis culture, strength, passion and unique presence in the industry as pure play retail. All new recreational cannabis retail stores will be constructed under the new, cool and comfortable META banner. The Company has unveiled an updated investor presentation as part of this new identity, which is available on its new website, metagrowth.com.
"Aligning our corporate brand, with our retail brand and our stock ticker demonstrates our commitment to the Canadian retail market and creating value for our shareholders", said Mark Goliger, CEO of Meta Growth. "As the cannabis industry has evolved, our focus has shifted from medicinal to recreational cannabis, and today, retail is our portfolio and our future. Brand recognition and consistency are key to our success and META is ready to continue to maintain our leadership position in the Canadian retail market."
Definitive Agreement to Sell Medical Cannabis Clinics Division
Meta Growth and Evergreen Pacific are pleased to announce that a definitive agreement to sell the Company's non-core medical cannabis clinics has been executed. Meta Growth intends to use the net proceeds of the sale to fund the buildout of recreational cannabis retail stores, and for general working capital purposes. The transaction is subject to customary closing conditions and is expected to close on or about November 30, 2019.
"As Canada's largest recreational cannabis retailer, with a well-defined growth path ahead of us, this Agreement represents META's focus to maintaining its leadership position in the Canadian retail market, which we view as the most strategic and valuable portion of the recreational cannabis value chain," said Mark Goliger. "We are proud of META's medical cannabis roots and I would like to thank all of the employees who have had a role in growing this division over the past 3 years. This transaction allows us to monetize a non-core asset and redeploy the proceeds into our primary business unit, with a view to optimizing long-term returns on capital and generating shareholder value."
About Meta Growth
With a portfolio of 35 licensed retail locations nationwide, META is a leader in secure, safe and responsible access to legal recreational cannabis in Canada. Through its Canada-wide network of META Cannabis Supply Co.™ and NewLeaf Cannabis™ recreational cannabis retail stores, META enables the public to gain knowledgeable access to Canada's network of authorized Licensed Producers of cannabis. META is listed on the TSX Venture Exchange under the symbol (TSXV: META).
About Evergreen Pacific Insurance Corporation
Evergreen Pacific owns, operates, and invests in businesses involved in designing, developing and distributing highly innovative insurance products and risk management solutions. As an insurance product developer and brokerage, Evergreen Pacific owns and operates a captive marketing and sales distribution channel focused exclusively on health & wellness. The Evergreen ecosystem – EPIC Health Group – addresses the comprehensive needs of the health & wellness consumer. Headquartered in Toronto, Canada, Evergreen was founded January 2018.
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 anticipated shareholder approval and completion of the Name Change, the successful receipt of regulatory approval, completion of closing conditions and the sale of, the Company's medical cannabis clinics division, the intended use the net proceeds of the sale of the Company's medical cannabis clinics division, changes in META's cannabis retail store designs and concepts, META continuing to play a pivotal role in the cannabis industry in Canada and the growth of the Canadian cannabis market. 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, including the vote by the shareholders of the Company regarding the Name Change and the successful sale of the Company's medical cannabis clinics division, 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 licences to retail cannabis products; future legislative and regulatory developments involving cannabis, including Ontario opening up licensing to more private retailers; 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 and social uncertainties; timing and completion of construction of the Company's retail locations; the delay or failure to receive regulatory approvals; the competitive conditions of the cannabis industry; the competitive and business strategies of the Company; the labour market generally and the ability to access, hire and retain employees; 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.
1 New Cannabis Ventures, Public Cannabis Company Revenue & Income Tracker. Largest publicly traded cannabis retailer by revenue.
SOURCE National Access Cannabis Corp.
For further information: Meta Growth: Mark Goliger, Chief Executive Officer, Meta Growth, Tel: 647-689-6382, [email protected]; Investor Relations: Emily Gibbs, LodeRock Advisors Inc., Tel: 416-546-8775, [email protected]; Media Inquiries for Meta Growth: Jessica Patriquin, Tel: 416-640-5525 x 230, Cell: 416-995-8496, [email protected]; Media inquiries for Evergreen Pacific: Damian Wojcichowsky, Tel: 604-226-1323, [email protected]