IGC Resources and Westleaf Announce Closing of $20 Million Financing Including Investment from Tilray

Published: December 5, 2018

IGC Resources and Westleaf Announce Closing of $20 Million Financing Including Investment from Tilray

IGC Resources Inc. and Westleaf Cannabis Inc., are pleased to announce that IGC has closed its previously announced brokered private placement of subscription receipts of IGC for gross proceeds of $20,108,403 resulting in 23,656,945 subscription receipts issued, including the exercise in full of the over-allotment option, which was increased to 6,008,945 Subscription Receipts. Additionally, Westleaf is pleased to announce that Tilray has made a $2.9 million strategic investment through the Offering. Westleaf views Tilray’s investment as a validation of its innovative approach to retail through its retail banner, Prairie Records, and is a strong endorsement of Westleaf’s strategy and leadership team.

“As a global leader in the cannabis industry, we believe Tilray’s investment in Westleaf reinforces the strength of our approach to cannabis retail and our team’s execution capabilities and is a testament to Tilray’s confidence in our ability to capture market share,” said Scott Hurd, President and CEO of Westleaf. “We are excited about the partnership with Tilray and look forward to continued growth together.”

The net proceeds from the Offering are intended to be used by the Resulting Issuer (as defined below) for expansion of its operations and general corporate purposes. Westleaf is targeting between 20 to 30 retail store openings over the next 12 to 24 months, subject to securing real estate, finalizing lease agreements, and completing provincial and municipal approvals.

Targeting densely populated, high traffic and resort-style areas, it is expected that Prairie Records retail stores will be situated in some of the most premium retail locations across the country. The retail concept was founded with a desire to create an unparalleled cannabis purchasing experience through tactile in-store features and product offerings that celebrate the inherent relationship between music and cannabis.

Featuring a rollout of 20 to 30 planned retail locations by 2020 in privatized markets across Western Canada, including its first Alberta location expected in early 2019 in the iconic Palace Theatre in the heart of downtown Calgary, Westleaf aims to be a leader in the cannabis retail market in Canada.

Westleaf is also proud that it expects to service the Saskatchewan community by launching a Prairie Records store in Warman, with an extended product offering through its e-commerce platform which will serve the entire province of Saskatchewan. Additional retail plans include evaluating and securing numerous cannabis retail options throughout Alberta, Saskatchewan, British Columbia and Ontario (subject to provincial regulations), in addition to, Westleaf being added to the pre-qualified list for the Manitoba lottery for cannabis retail licenses.