Kiaro Holdings Corp., an omnichannel cannabis retailer and distributor, announced that, further to the press release dated February 23, 2021, it has closed its previously announced acquisition of Grasshopper Cannabis’ (the “Vendor”) Kelowna retail assets. Pursuant to the terms of the Asset Purchase Agreement, the Vendor received $695,000 in cash upon closing.
- The subject location is in a prime area of downtown Kelowna, which expects significant residential and commercial investment in the near term
- The subject location had been previously rezoned to operate a cannabis store
- Completion of the transaction is expected to:
- Increase revenue in current fiscal year
- Bring the Kiaro retail location count to 8 across Canada
- Support the growth and vibrancy of Kelowna
- Kiaro’s first retail location in a key consumer market in the interior of British Columbia
“Kiaro is thrilled to join Downtown Kelowna and we anticipate bringing a positive contribution to their shared vision of a thriving business community where people want to work, live and play,” stated Daniel Petrov, CEO of Kiaro. “As for defensibility, I continually speak to the unparalleled moat around BC retail stores, and Kelowna BC is no exception. To prove that point further, the province has struck out on two of its three efforts to open its own cannabis stores in Kelowna.”
“This is a big win for the Kiaro team, shareholders and the community,” shared Mr. Petrov. Kiaro will submit its application for a cannabis retail store license to the Liquor & Cannabis Regulation Branch of the Province of British Columbia at its earliest opportunity and is targeting an opening date for the Subject Location in Summer 2021.
The new proposed retail location at 1650 Pandosy Street, Kelowna, BC, V1Y 1P7 (the “Subject Location”) is one block off Harvey Ave/Highway 97. As part of the significant investment in the area, the UBC Okanagan Downtown Campus is scheduled to begin construction in 2022 and the City of Kelowna recently approved Water Street by the Park, a 3-tower residential and commercial building immediately adjacent to the Subject Location.
This acquisition is the first stop in Kiaro’s plan for aggressive expansion of retail across Canada this fiscal year. Kiaro continues its mission to provide cannabis and CBD consumers with a seamless retail experience; this proposed location will integrate into the community and bring a wealth of vibrancy to the area.
Based in Vancouver, British Columbia, Kiaro is an independent, omni-channel cannabis retailer and distributor. Through existing storefronts across British Columbia and Saskatchewan, a wholesale distribution division servicing Saskatchewan and plans for national expansion, Kiaro is driven to introduce new and experienced consumers to a lifelong exploration of cannabis.