CALGARY, Feb. 5, 2019 /CNW/ - Inner Spirit Holdings Ltd. ("Inner Spirit" or "the Company") (CSE:ISH.CN - News) today announced further progress on its corporate store strategy by acquiring additional locations in Calgary and Canmore, Alberta. Inner Spirit is developing a retail network of Spiritleaf branded cannabis retail locations across Canada.
The Company is building its corporate store portfolio in Alberta with approximately 10 wholly owned corporate locations to support its franchise network and enhance top-line revenue growth. The franchise network is being developed with more than 100 franchise agreements signed and four locations currently open in Alberta and Saskatchewan with a fifth location expected to open in Calgary the week of February 11.
"We are focused on creating a national Spiritleaf brand and providing consistent experiences and quality products for cannabis consumers. We're doing this with a blend of corporate and franchise stores, so we enter markets effectively and efficiently to build the brand. Prime strategic corporate locations like the ones acquired today provide us with flagship stores, a growing source of revenue and a platform for our expansion across the country," said Darren Bondar, President and CEO of Inner Spirit.
The Company, through its wholly owned subsidiary Spirit Leaf Corporate Inc., has entered into an agreement with a Spiritleaf franchise partner to purchase the assets of three proposed cannabis retail stores. The acquisition presented a unique opportunity for the Company, as the retail stores will be in Calgary's high traffic 17th Avenue downtown mission district and two premier locations in Canmore. The stores have received their municipal recreational cannabis store development permits and construction is expected to commence shortly.
Total consideration payable for the locations is $2,000,000, of which $1,500,000 is being paid through the issuance of 7,075,472 common shares of Inner Spirit at an issue price equal to $0.212 per share, being the 10 day volume weighted average price of the Inner Spirit common shares for the period ended February 1, 2019, as well as $250,000 in cash and a $250,000 promissory note due one year after the closing of the acquisition.
About Inner Spirit
Inner Spirit is establishing a chain of recreational cannabis stores under its Spiritleaf brand. Supporting local entrepreneurs by applying its award-winning franchise and retail models, Inner Spirit has more than 100 franchise agreements in place for potential Spiritleaf locations and also plans to operate corporate outlets in certain jurisdictions. Developing a diverse portfolio of quality and curated lifestyle cannabis products – including Spiritleaf's own locally sourced lines – Spiritleaf is positioned to be an iconic Canadian brand and the most trusted source for recreational cannabis. More information can be found on Inner Spirit's website at www.innerspiritholdings.com.
This press release contains statements and information that, to the extent that they are not historical fact, 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 plans, objectives or economic performance, or the assumption underlying any of the foregoing. In some cases, forward-looking statements can be identified by terms such as "may", "would", "could", "will", "likely", "except", "anticipate", "believe", "intend", "plan", "forecast", "project", "estimate", "outlook", "potential", or the negative thereof or other similar expressions concerning matters that are not historical facts. Examples of such statements include, but are not limited to, statements with respect to the objectives and business plans of the Company; the establishment of recreational cannabis stores in Canada; the intention to grow the Company's business and operations; the receipt of necessary licenses and permits to open stores and the timing thereof; the regulation of cannabis for recreational use in Canada, including federal and provincial regulations pertaining thereto; the competitive conditions of the industries in which the Company operates; and laws and any amendments thereto applicable to the Company.
SOURCE Inner Spirit Holdings
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