Inner Spirit Holdings Receives Licenses to Sell Recreational Cannabis in Alberta & Saskatchewan

Published: October 29, 2018

Inner Spirit Holdings Receives Licenses to Sell Recreational Cannabis in Alberta & Saskatchewan

Inner Spirit Holdings Ltd. announced that the Alberta Gaming and Liquor Commission (“AGLC”) has granted final licenses to operate recreational cannabis dispensaries to three Spiritleaf franchise locations in Brooks, Lethbridge and St. Albert, Alberta. In addition, Spiritleaf’s Moosejaw, Saskatchewan location has also received its license from the Saskatchewan Liquor and Gaming Association (“SGLA”). All four of these Spiritleaf franchise locations are expected to open in the next week.

The Company also announces that the AGLC has advised Spirit Leaf Inc., its wholly-owned subsidiary, that it has completed its due diligence and has found the Company suitable to hold a Retail Cannabis Store Licence. Spirit Leaf Inc. and its franchise partners will continue to work with the Alberta government on final approvals of its additional 24 municipally approved Alberta sites that are in various stages of construction while simultaneously working with local municipalities on the approval of its other conditionally secured locations.

In addition, the Company, through another wholly-owned subsidiary Spiritleaf Corporate Inc., has entered into an agreement with an arm’s length party to purchase all the assets of Indica Jasper Inc., constituting a substantially completed and provisionally approved recreational cannabis dispensary in the town of Jasper, Alberta at 618 Patricia Street. Total consideration to acquire the assets and the territory is $400,000 in cash and $40,000 through the issuance of 160,000 Inner Spirit common shares based on Friday’s closing price of $0.25. The acquisition is expected to close by October 31 and the location will be converted and opened as a wholly-owned corporate Spiritleaf location in the heart of Jasper that receives over two million visitors per year. The Company also issued 100,000 common shares to its Jasper franchise partner to terminate their franchise agreement in connection with the transaction.

“These are very exciting developments and additional steps forward for Inner Spirit given the substantial interest and demand for recreational cannabis since legalization earlier this month,” said Darren Bondar, President and CEO of Inner Spirit. “We are eager to begin offering customers a variety of high-quality curated products in a safe and socially-responsible best-in class retail environment as we work towards opening additional stores in the coming months.”