Inner Spirit Advances Corporate Store Strategy by Acquiring Cannabis Retail Locations in Calgary and Canmore

Inner Spirit Holdings Ltd. announced further progress on its corporate store strategy by acquiring additional locations in Calgary and Canmore, Alberta. Inner Spirit is developing a retail network of Spiritleaf branded cannabis retail locations across Canada.

The Company is building its corporate store portfolio in Alberta with approximately 10 wholly owned corporate locations to support its franchise network and enhance top-line revenue growth. The franchise network is being developed with more than 100 franchise agreements signed and four locations currently open in Alberta and Saskatchewan with a fifth location expected to open in Calgary the week of February 11.

“We are focused on creating a national Spiritleaf brand and providing consistent experiences and quality products for cannabis consumers,” said Darren Bondar, President and CEO of Inner Spirit. “We’re doing this with a blend of corporate and franchise stores, so we enter markets effectively and efficiently to build the brand. Prime strategic corporate locations like the ones acquired today provide us with flagship stores, a growing source of revenue and a platform for our expansion across the country.”

The Company, through its wholly owned subsidiary Spirit Leaf Corporate Inc., has entered into an agreement with a Spiritleaf franchise partner to purchase the assets of three proposed cannabis retail stores. The acquisition presented a unique opportunity for the Company, as the retail stores will be in Calgary’s high traffic 17th Avenue downtown mission district and two premier locations in Canmore. The stores have received their municipal recreational cannabis store development permits and construction is expected to commence shortly.

Total consideration payable for the locations is $2,000,000, of which $1,500,000 is being paid through the issuance of 7,075,472 common shares of Inner Spirit at an issue price equal to $0.212 per share, being the 10 day volume weighted average price of the Inner Spirit common shares for the period ended February 1, 2019, as well as $250,000 in cash and a $250,000 promissory note due one year after the closing of the acquisition.