Best-in-class retail roll-out to begin Q1 2019 as Westleaf's
Prairie Records retail stores seek to redefine the cannabis purchasing experience
Westleaf's vertically integrated strategy enables company to
maximize margins throughout the lifecycle and maturity of the industry
CALGARY, Nov. 5, 2018 /CNW/ - Westleaf Cannabis Inc. ("Westleaf" or the "Company") is rolling out its strategy as a vertically integrated company focused on best-in-class retail and in-store customer experiences through its retail banner, Prairie Records. Westleaf will guide the customer experience and help influence consumer purchasing decisions with its highly differentiated and engaging store concept. Prairie Records reinvents the cannabis purchasing experience with a tactile, musically themed, shopping journey through a record store style concept, allowing consumers to engage and educate themselves on products.
"Our core belief is that in many jurisdictions across Canada, Westleaf can curate a unique and engaging customer experience with Prairie Records that will enhance brand loyalty and our growth within the marketplace," said Scott Hurd, President and CEO of Westleaf. "With a current cash position of over $21 million and strategic partnerships with best-in-class organizations like ATB Financial, VIVO Cannabis Inc. and Delta 9, we are well positioned to deliver on all facets of the supply chain."
Leaders in Cannabis Retail:
- A differentiated approach with tactile in-store branding and consumer engagement
- Premium retail locations in densely populated neighbourhoods and tourist destinations
- Targeting more than 30 retail locations to launch in 2019 and 2020 in Western Canada
- Evaluating and securing cannabis retail locations throughout Ontario
- Pre-qualified for the Manitoba's lottery for cannabis retail licenses
- Prairie Records flagship store opening in January 2019 at Calgary's iconic Palace Theatre located on Stephen Avenue with foot traffic of over 55,000 people per day
- Launching Prairie Records in Warman, Saskatchewan in January 2019, and an e-commerce platform to serve the entire province of Saskatchewan
"Experience led retail is our mantra and it starts with a relentless focus on securing the best retail locations across the country. We are following a flagship-only approach that delivers a brand experience on par with the best bricks and mortar retail in the world," said Adam Coates, Vice President of Sales and Marketing at Westleaf.
Westleaf has aligned itself with cannabis industry leaders to secure strategic brand partnerships, supply agreements and optimize its capital structure.
These partnerships include but are not limited to:
VIVO Strategic Investment & Supply Agreement
On October 3, 2018, Westleaf secured a $5 million strategic investment from VIVO Cannabis Inc. ("VIVO") to advance the development of Westleaf's cannabis retail operations across Canada. The investment involves a multi-year supply agreement whereby Westleaf has access to VIVO's portfolio of engaging adult-use brands and the option to white label Westleaf branded products. The VIVO investment and supply agreement is a strong endorsement of the Westleaf team and strategy and advances Westleaf's position as a premium cannabis retailer in Canada.
Westleaf worked with ATB to secure up to $24 million of debt financing for its Thunderchild cultivation facility located in Battleford, Saskatchewan, thereby reducing the equity investment required to develop the project. This creates a substantial competitive advantage as Westleaf can maintain an efficient capital structure with low cost debt to accelerate its growth strategy while limiting dilution for existing and future shareholders. Westleaf is proud of its long-term relationship with ATB and it looks forward to working together on future projects.
Processing, Extraction and Cultivation:
Westleaf partnered with Delta 9 Cannabis to build a state-of-the-art cannabis extraction, testing, and research and development laboratory in Calgary, Alberta to develop and manufacture a diversified offering of cannabis products.
- The total facility is ~60,000 sq. ft. with Phase 1 (15,800 sq. ft.) to include R&D, processing, extraction, manufacturing and order fulfillment, all built to EU GMP specifications with the intent to access international export markets.
- Phase II (44,900 sq. ft.) is designed to significantly increase the capacity of the facility and to produce new derivative product lines, including concentrates, vape cartridges, edibles, and beverages, once these types of products are permitted for production and sale under Canadian regulations
Westleaf is building a large-scale indoor cultivation facility which is currently under construction in Battleford, Saskatchewan with an anticipated capacity of 14,600 kg of dried flower per annum (Phase I and II).
- The facility was designed and will be operated by Westleaf's team who have built and operated dozens of cannabis production facilities in North America. The operations team has a prior demonstrated track record of achieving industry leading yields and cost structures.
"Vertical integration will allow Westleaf to maximize and defensively protect its profit margins. Controlling the entire cannabis value chain from 'seed to shelf' enables us to respond rapidly to changing consumer purchasing habits and deliver high-quality and consistent products," said Scott Hurd, President and CEO of Westleaf.
Westleaf Go-Public Event & $15 million Financing
On October 5, 2018, Westleaf announced the launch of its go-public event by way of a reverse takeover of IGC Resources Inc., whereby Westleaf will become publicly traded. The proposed transaction is an exciting step forward for Westleaf and its shareholders as it will provide the company access to capital to accelerate its growth plans and pursue strategic M&A opportunities.
On October 17, 2018, IGC and Westleaf announced a $15 million subscription receipt financing in connection with Westleaf's go-public event. The financing will consist of subscription receipts of IGC at a price of $0.85 per subscription receipt, with each subscription receipt entitling the holders thereof to one IGC common share and one-half of one IGC warrant. Each whole warrant shall be exercisable to acquire one resulting issuer share at an exercise price of $1.30 per warrant.
Prairie Records Website & Social Media Campaign
Westleaf recently launched the Prairie Records website and social media campaign in preparation for marketing and store openings. While it is in preliminary stages, the website is built on the Shopify Plus platform and is currently being developed to be a creatively designed e-commerce site where the company will sell cannabis consumables and accessories in the Saskatchewan market. Once launched, the e-commerce capable site will also offer a range of highly sought-after Prairie Records branded merchandise nationally.
We encourage you to check out and follow @PrairieRecords on both Instagram and Facebook for regular posts to give you a sense on how we "Hit the High Notes" ™ and encourage consumers to follow along and "Get Lost in the Music" ™. We are investing in creating our own custom content that will be engaging for a wide range of consumers while driving brand awareness and brand affinity prior to the launch of our first stores.
About Westleaf Cannabis Inc.
Westleaf is a private vertically integrated cannabis company focused on innovative retail experiences, engaging cannabis brands and premium cannabis production. Westleaf is headquartered in Calgary, Alberta. Since incorporation, Westleaf has used its funds to execute its vertically integrated business plan, which includes applying for prospective cannabis retail locations in privatized markets across Canada, developing an extraction and processing facility in Calgary, Alberta and developing a large-scale indoor cannabis cultivation facility located in Battleford, Saskatchewan. Westleaf is developing a national retail footprint for its retail concept "Prairie Records", which leverages the instinctual tie of recreational cannabis and music and redefines the cannabis purchasing experience. For more information, please visit www.westleaf.com.
Disclaimer for Forward-Looking Information
This press release contains statements and information that may constitute "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information may include financial and other projections, as well as statements regarding future, objectives or economic performance, or the assumption underlying any of the foregoing. This press release uses words such as "may", "would", "could", "will", "likely", "except", "anticipate", "believe", "intend", "plan", "forecast", "project", "estimate", "outlook", "propose" and other similar expressions to identify forward-looking information. Examples of such forward-looking information includes, but is not limited to, statements with respect to Westleaf's go-public transaction and $15 million financing, expansion of its planned cannabis retail footprint and target locations and timing of opening, use of proceeds, and operation and success of its retail and online stores. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. The material factors and assumptions used to develop the forward-looking statements contained in this press release include, but are not limited to, Westleaf's ability to obtain regulatory approvals in a timely manner, the ability of Westleaf to execute on its business plan and Westleaf's ability to secure financing and the factors and assumptions set forth in the press releases referred to above. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Westleaf to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information, including risks relating to the future business plans of Westleaf. Accordingly, readers should not place undue reliance on any such forward-looking information. Further, any forward-looking statement speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for Westleaf's management to predict all such factors and to assess in advance the impact of each such factor on Westleaf's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Westleaf does not undertake any obligation to update any forward-looking information to reflect information or events after the date hereof or to reflect the occurrence of unanticipated events, except as required by law including securities laws.
SOURCE Westleaf Cannabis Inc.