With 17 locations currently under construction and 25 retail applications submitted in Alberta, The Green Company Ltd. extends META's robust footprint in Alberta's retail cannabis industry
OTTAWA, Sept. 10, 2018 /CNW/ - National Access Cannabis Corp. ("NAC" or the "Company") (TSXV: META), Canada's best practices leader in delivering secure, safe, and responsible access to legal cannabis today announced it exercised an option to acquire all of the shares of The Green Company Ltd. ("NewLeaf") not already owned by NAC for $23,582,000 shares in escrow and $5,895,500 cash (the "Acquisition") pursuant to the terms of an option agreement between the Company, NewLeaf and all of the shareholders of NewLeaf (the "Option"). To facilitate a timely closing, the parties to the Option also entered into an addendum and amending agreement dated September 10, 2018. The Acquisition is subject to customary closing conditions and is expected to close prior to the end of the business day on September 10th, 2018. The proceeds of the Acquisition will be placed in escrow and will be paid to the former NewLeaf shareholders as cannabis retail licences are granted to NewLeaf, or, returned to NAC.
NewLeaf has submitted 25 cannabis retail license applications for locations in Alberta, with 20 development permits granted and with five more development permits expected. Currently, 17 NewLeaf retail cannabis locations are under construction in Alberta with a target opening date of October 17, 2018, subject to regulatory approvals. NAC will continue to operate these locations under the NewLeaf brand, keeping regional management teams intact. The Acquisition allows NAC to increase its retail presence and offer a second brand choice for cannabis customers, above and beyond the Meta Cannabis Supply Co. brand and retail footprint planned for Manitoba, Saskatchewan, Alberta, British Columbia and Ontario (pending license approvals).
"This is a transformational transaction for NAC," said Mark Goliger, CEO of NAC. "NewLeaf has proactively secured high quality store locations and first mover advantage, with 17 stores expected to be ready for October 17th, while simultaneously developing a well-known brand name in the region. The core values of our companies are strongly aligned in educating interested Canadians about legal cannabis products while delivering secure, safe, and responsible access. This acquisition helps to maximize NAC's retail footprint opportunity across Alberta, helping NAC reach the maximum permitted number of Alberta store fronts under Provincial regulations."
Mr. Goliger added: "In addition to this transaction, NAC continues to evaluate locations with our strategic partnership with The Second Cup Ltd. and apply for retail cannabis licenses across Western Canada to operate retail cannabis stores under the Meta Cannabis Supply Co. brand."
Board of Director Changes
The Company also announced today that the Board of Directors has appointed Marc Lustig as Chairman, effective immediately. Chuck Rifici has resigned as Chairman of the Company's Board of Directors.
The advice and counsel that Mr. Lustig has provided to NAC management on key strategic initiatives during his tenure has contributed to the Company's continued success and growth. He has been a successful cannabis entrepreneur as the Founder of CannaRoyalty Corp, which followed an extensive 15-year career in capital markets.
Mark Goliger, the CEO of National Access Cannabis, also joins the Board of Directors.
"NAC continues to take steps to maximize its allowable cannabis retail footprint with the META stores and now its acquisition of NewLeaf," said Chuck Rifici. "This creates a potential conflict of interest for me with other business ventures, so I have decided to step down as Chairman of NAC at this time. I remain the largest shareholder of NAC and I believe the company is well positioned to become Canada's largest cannabis retailer. I would also like to congratulate Marc in his new role as Chairman and look forward to NAC's continued success."
About National Access Cannabis Corp.
NAC is Canada's best practices leader in delivering secure, safe, and responsible access to legal cannabis. Through its Canada-wide network of care centres, pharmacies, NAC Bio's clinical research division, and Meta Cannabis Supply Co.™ 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). For more information, visit www.nationalaccesscannabis.com and www.nacbio.com and www.metacannabis.com
About NewLeaf Cannabis
NewLeaf has committed to being stewards of authentic relationships through education and contribution to their communities. The company has actively contributed to its communities through volunteer initiatives and donations to community projects.
NewLeaf Cannabis' mission is to change negative attitudes towards cannabis and its retailers with services focused on education and appropriate-fit product recommendations. NewLeaf follows an educational approach and maintains a strong commitment to safety, proactive communication and community engagement at their convenient, suburban-based Alberta locations. Currently, 17 proposed retail cannabis store locations are under construction and NewLeaf has submitted 25 license applications for locations across Alberta; including Calgary, Edmonton, Leduc, St. Albert, Airdrie, Lethbridge and Medicine Hat. For more information about NewLeaf Cannabis, please visit www.newleafcannabis.ca
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 the continued operation of NewLeaf retail locations, keeping regional NewLeaf management teams intact, planned growth of the retail footprint for the Meta Cannabis Supply Co. brand, the anticipated opening dates of NewLeaf retail locations, conversion of The Second Cup Ltd. cafes into NAC operated cannabis retail stores under the Meta Cannabis Supply Co. brand, the Company's plans to apply for retail cannabis licenses across western Canada, the Company's position as a cannabis retailer within Canada. 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; 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 medical and potential 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 Corp.: Mark Goliger, Chief Executive Officer, 1-800-411-1126, [email protected]; Investor Relations: Emily Gibbs, LodeRock Advisors Inc., 416-546-8775, [email protected]; Media Inquiries: Jessica Patriquin, Maverick PR, O 416-640-5525 x 230, M 416-995-8496, [email protected]