National Access Cannabis Corp. announced that its wholly owned subsidiary, NAC Prairies Ltd., has entered into a share purchase agreement in respect of an arm’s length transaction with the shareholders of New Leaf Emporium Inc., whereby NAC Prairies will acquire all of the issued and outstanding shares of New Leaf Emporium. Under the terms of the share purchase agreement, the total purchase price payable for the New Leaf Emporium Shares is $1.6 million, comprised of a cash payment of $1.2 million from NAC Prairies and the issuance of 649,880 common shares of NAC, which have an aggregate dollar value of approximately $400,000.
Additionally, NAC Prairies will reimburse New Leaf Emporium for certain expenses associated with the build out of the Moose Jaw premises on standard commercial terms. The Purchase Price and New Leaf Emporium Shares have been placed into escrow and will be released to the respective parties upon the Saskatchewan Liquor and Gaming Authority providing NAC with approval to operate the New Leaf Emporium premises in Moose Jaw, Saskatchewan, following which NAC Prairies will own all of the issued and outstanding shares of New Leaf Emporium.
“We’re growing our footprint into Saskatchewan,” said Mark Goliger, CEO of NAC. “We’ve worked diligently to be the national leader in cannabis retail, having opened 21 stores to date in the complex regulatory markets of Alberta and Manitoba, and with our experience, Saskatchewan is an ideal expansion market for NAC. We have what’s required: great relationships with Licensed Producers, existing e-commerce infrastructure, and retail operator know-how. Moose Jaw is the right market to start, with the New Leaf Emporium store operational today as one of only 2 stores serving a population of 35,000. We’re ready to lead the way for customers in three provinces through a proven model of safety, education and customer service while delivering sustained returns and increased growth for our shareholders.”
Pending regulatory approval, NAC will immediately take full operation of the New Leaf Emporium retail cannabis store in central Moose Jaw at the corner of Main and Athabasca and offer online sales throughout Saskatchewan.
The Company currently has 21 cannabis retail locations open in total, split as follows:
– 14 NewLeaf Cannabis stores in Alberta
– 7 Meta Cannabis Supply Co. stores in Manitoba
The Company opened a new Meta Cannabis Supply Co. location in Morden, Manitoba on Friday, January 11th, for a total of 21 stores across Canada, with an additional seven retail stores planned to open throughout Manitoba by the end of Q2 2019.