National Access Cannabis Corp. has entered into a conditional share purchase agreement through Meta West Coast Ltd., a wholly-owned subsidiary of NAC, to acquire 19.9% of Sicamous Trading Company Incorporated (“STC“) from the shareholders of STC.
- Further solidifies NAC’s position as the Canadian retail cannabis leader1 – adds British Columbia (“BC“) exposure to the market in addition to the Company’s 30 current licensed locations in Alberta, Saskatchewan and Manitoba.
- STC currently has one retail cannabis store licence application in process with the British Columbia Liquor and Cannabis Regulation Branch (the “LCRB“).
- STC plans to add more locations over the next 12 months, building on the foundation of its first location in well-trafficked vacation spot, Sicamous BC, subject to receipt of required retail cannabis store licences.
- NAC has entered into a management agreement with STC whereby NAC will provide certain store development and operational services to support STC in its retail store development in exchange for management fees calculated as a set percentage of STC’s store-level EBITDA for its first store and every successive store opened.
“We have been telling shareholders for some time that we see a significant opportunity to leverage NAC’s deep operational expertise into accretive arrangements with other cannabis operators,” said Mark Goliger, CEO of NAC, “NAC shareholders are expected to benefit from the Company’s ownership stake in these innovative organizations, a high margin management fee income stream as well as incremental purchasing power as we continue to grow our leading Canadian network. I would like to personally welcome the Sicamous team to the NAC platform. Our team is excited about STC’s first location in this resort town and to supporting the roll-out of additional locations.”
Pursuant to the Share Purchase Agreement, NAC will acquire 199,000 class “A” common shares (the “Purchased Shares“) in the capital of STC, being 19.9% of the issued and outstanding shares in the capital of STC, in exchange for $200,000, payable by the issuance of common shares of NAC at a price of $0.53 per share (the “Consideration Shares“) to be distributed pro rata among the Vendors (the “Transaction“). Upon execution of the Share Purchase Agreement, the Purchased Shares and the Consideration Shares are to be delivered to Alliance Trust Company, as escrow agent (the “Escrow Agent“), to be held in escrow until such time that STC acquires a retail cannabis store licence from the LCRB and the LCRB has approved the transfer of the Purchased Shares to NAC.