- NAC has achieved $3.95 million in cumulative sales in 50 days from retail cannabis operations.
- The Company has 18 operational retail cannabis locations with the latest opening on December 3, 2018, in Lethbridge, Alberta.
- NAC will be compliant with Ontario licensing requirements. The Company is currently working both independently and through its partnership with Second Cup, with a goal of opening up to 75 Ontario locations starting on April 1, 2019, subject to applicable regulatory approvals.
- The Company is already the largest private cannabis retailer in Canada by store count, according to provincial licensing statistics, and by December 31, 2018, expects to be larger by store count than any public or private operator.
TORONTO, Dec. 6, 2018 /CNW/ - National Access Cannabis Corp. ("NAC" or the "Company") (TSXV: META), a best practices leader in delivering secure, safe and responsible access to legal cannabis in Canada, today provided investors with a corporate and retail sales update.
The Company currently has 18 cannabis retail locations open in total, split as follows:
- 14 NewLeaf Cannabis™ stores in Alberta
- 4 Meta Cannabis Supply Co.™ stores in Manitoba
The Company achieved $3 million in cumulative sales in its first 43 days of retail operation and $3.95 million in its first 50 days. The average gross margin achieved over the first 50 days of operation of retail locations was over 30 per cent, with consumable cannabis making up 94 per cent of total sales. NAC is currently the largest private cannabis retail operator in the country and has plans to open up to 75 retail cannabis locations in Ontario over the next 18 months, subject to regulatory approval, along with continued growth in other areas of the country.
"I am very proud of our team for turning three years of retail medical experience and detailed preparation for the Canadian recreational market, into solid early financial results," said Mark Goliger, CEO of NAC. "We anticipate continued improvement in operations both as existing stores mature and as we continue to roll-out additional locations. In a marketing-constrained geography like Canada, we expect that cannabis retailers will have the best access to the customer and be well positioned to capitalize on the economic upside available in the value chain from seed to retail sale. With our growth plans over the next 12 months we expect to remain the largest private cannabis retailer in the country and to utilize both our scale and operational expertise to drive returns for our shareholders."
Previous announcements regarding NAC's retail store expansion may be found through the following links:
Ontario Recreational Cannabis Retail Update
The Company is currently working both independently under NAC's retail brand Meta Cannabis Supply Co. ("META") and through its partnership with The Second Cup Ltd. ("Second Cup"), to select up to 75 retail locations that it will move forward to develop as retail cannabis stores, subject to regulatory approvals. NAC expects to have applications submitted by the December 17, 2018 online application date and to begin opening Ontario locations on the April 1, 2019 privatization date, subject to regulatory approvals.
"As Canada's largest and most experienced operator of private retail cannabis locations, the Ontario market is a core component of our go-forward strategy and we plan to be a dominant force in the province, just as we are in other regions," said Mark Goliger, CEO of NAC. "Our team has been planning for the announcement of the province's licensing requirements and as a result, we are well-advanced and prepared to open the maximum number of cannabis stores across the province. For shareholders, this is more than blanketing the province with retail locations; we are focused on leveraging our footprint into solid returns as we continue to grow."
"In a nascent market with many new entrants, NAC has a competitive advantage as the most experienced operator in the market today," added NAC COO, Christopher Kane. "We know what it takes to get stores compliant, open and performing financially, especially in shifting regulatory environments. Our team is ahead of the game, having already identified favourable municipalities and securing real estate leases throughout the province, both independently and in partnership with Second Cup. We are ready to build a leadership position in cannabis retail in Ontario."
On November 14, 2018, the Alcohol & Gaming Commission of Ontario ("AGCO") announced that retailers may apply to open a maximum of 75 locations in Ontario. National Access Cannabis will continue its strategy to pursue the maximum number of Ontario locations ensuring that it is onside any applicable regulatory requirements by December 17, 2018.
About National Access Cannabis Corp.
NAC is a best practices leader in delivering 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).
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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 application for licenses to dispense cannabis products in Canada, the opening dates for NAC cannabis retail stores and the number of NAC cannabis retail stores expected to open and/or become licensed. 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.
For further information: National Access Cannabis: Mark Goliger, Chief Executive Officer, National Access Cannabis, Phone: 647-689-6382, firstname.lastname@example.org; Investor Relations: Emily Gibbs, LodeRock Advisors Inc., 416-546-8775, email@example.com; Media Inquiries: Jessica Patriquin, 416.640.5525 x 230, M 416.995.8496, firstname.lastname@example.org