Meta Growth Corp., a Canadian recreational cannabis retailer, provided the following update today regarding its Ontario roll-out plans.
Closes Acquisition of Waterloo Store
As previously reported on July 20, 2020, META has now completed the acquisition of 2208292 Alberta Ltd. (the “Target”), which carries on the business of operating the Bud & Sally Cannabis Co. recreational cannabis retail store in Waterloo, Ontario. The acquisition was structured as a share purchase, whereby META acquired all of the issued and outstanding shares of the Target for total cash consideration of $1,150,001, of which approximately $300,000 relates to inventory. The Bud & Sally Cannabis Co. store opened in March 2020, and achieved $172,385 in weekly revenue for the week ended August 15, 2020, with a 37.2% gross margin.
Update Regarding Kitchener Store Acquisition
As previously reported on July 20, 2020, META announced that it had executed an asset purchase agreement to acquire the Meta Cannabis Co. branded recreational cannabis store in Kitchener, Ontario. The closing of the acquisition is subject to the Alcohol and Gaming Commission of Ontario (“AGCO”) approving the transaction. For the week ended August 15, 2020, the Kitchener store achieved $159,022 in weekly revenue, with a 37.2% gross margin.
Enters Definitive Agreement to Sell Retail Cannabis Store at 378 Yonge Street, Toronto, Ontario
Meta Growth has made the decision to divest the 378 Yonge Street store on the back of the Company’s announcement on August 21, 2020, whereby META entered into a definitive arrangement agreement pursuant to which High Tide Inc. (“High Tide”) will acquire all of the issued and outstanding shares of META (the “Plan of Arrangement”), resulting in the creation of Canada’s largest cannabis retailer (the “Combined Entity”). High Tide currently has 7 branded retail cannabis locations in Ontario, with a Canna Cabana location 300 meters from the 378 Yonge Street store. In evaluating the consolidated retail store portfolio post-close between META and High Tide, it was determined that divesting the 378 Yonge Street store would optimize the Combined Entity’s retail footprint in Ontario.
The Company has entered into a definitive agreement to sell its retail cannabis store at 378 Yonge Street in Toronto, Ontario. The divestiture is structured as a share transaction where all the issued and outstanding shares of 11522302 Canada Inc., the company which owns the 378 Yonge Street store, will be sold for a total cash purchase price of $750,000, plus net working capital of the business at the date of closing. The divestiture is subject to customary closing conditions, including the receipt of a no-objection letter from the AGCO which has already been received. It is anticipated the transaction will close on or about August 31, 2020, subject to all parties satisfying the remaining conditions.
Meta Growth is a leader in secure, safe and responsible access to legal recreational cannabis in Canada. Through its Canada-wide network of Meta Cannabis Co.™, Meta Cannabis Supply Co.™ and NewLeaf Cannabis™ recreational cannabis retail stores, Meta Growth enables the public to gain knowledgeable access to Canada’s network of authorized Licensed Producers of cannabis.