Westleaf Announces Closing of Option to Purchase Cannabis Store located on Broadway in Saskatoon
May 03, 2019CALGARY: Westleaf Inc. (TSX-V: WL)(OTCQB: WSLFF) (Westleaf), is pleased to announce it has exercised its previously announced option (the Option) to purchase all of the issued and outstanding shares of 102053012 Saskatchewan Ltd. (102), which operates a cannabis retail store located at 720 Broadway Avenue, Saskatoon.
Premium Location The 720 Broadway Avenue store is in a high density, shopping-friendly neighborhood, situated in the middle of the city's densest commercial and entertainment district and is also close to the University of Saskatchewan, the largest post-secondary institution in the province;
Well Defined and Regulated Market Saskatoon is the 17th largest city in Canada with around 300,000 people in the metropolitan area. The Saskatchewan Liquor and Gaming Authority (the SLGA) has approved seven licenses for the Saskatoon market, with Westleaf owning one of such locations upon the anticipated closing of the Option, while having a previously announced option to purchase a second location.
Truly Vertically Integrated Company - Westleaf is a vertically integrated company in the Canadian cannabis industry, with assets owned and under development across each vertical of the business, including cultivation, extraction, processing & manufacturing, distribution and wholly owned retail.
Pursuant to the Option purchase agreement, upon delivery of all closing deliverables, which is expected to occur today, Westleaf will acquire the shares of 102 for an aggregate price of $690,000, upon which 102 will become a wholly owned subsidiary of Westleaf. The purchase price for the 102 shares will be paid by (i) the issuance of an aggregate of 315,789 common shares in the capital of Westleaf (Common Shares) at a deemed value of $1.71 per Common Share; and (ii) a cash payment $150,000. Under the Option purchase agreement, Westleaf was eligible to purchase and transfer the store once 102 (as license holder) received approval from the SLGA.
The store, which was built out as part of a license agreement with Westleaf, will operate under the Prairie Records retail banner and will be open for business on April 17, 2019. The store's grand opening celebration is expected to occur on April 20, 2019, the day that is synonymous with the legalization of cannabis.
While Prairie Records creates a unique and totally different cannabis retail experience, we do want to recognize the day that activists used to bring attention to the push for legalization of cannabis which has gone on for many years, noted Adam Coates, Chief Commercial Officer at Westleaf. We are excited to open our doors in Saskatoon providing the community with a unique retail option that celebrates the relationship between cannabis and music.
Saskatchewan is proving to be a strong cannabis retail market as the sector continues to evolve and mature, said Scott Hurd, President and CEO of Westleaf. Here, we have the opportunity to deal directly with licensed producers in purchasing inventory, we are able to sell online across the province through our e-commerce platform, and the ratio of stores to market size make Saskatoon an ideal location to operate cannabis retail.
Prairie Records currently has a store operating in Warman, Saskatchewan, approximately 20 minutes from Saskatoon, as well as province-wide online sales at www.prairierecords.com. Westleaf holds an additional option to purchase a second store in Saskatoon. (PRN)
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