- NAC is Canada's largest
publicly traded recreational cannabis retailer by revenue, and one
of the largest revenue generators in the Canadian cannabis
industryii
- NAC currently has 35 licensed stores in Canada, 33 of which are currently open and
operated by NAC.
- The Company continues to drive towards having 40 stores
operating by the end of calendar 2019.
- In NAC's last quarter – its third quarter ended May 31, 2019 – NAC retail cannabis stores
generated $16.8 million in
revenueiii at a gross profit margin of 32% and
adjusted EBITDAiv of $2.3
million (margin of 14%), up significantly from the prior
quarterv.
TORONTO, Oct. 15, 2019 /CNW/ - National Access Cannabis
Corp. ("NAC" or "the Company") (TSXV: META), Canada's largest publicly traded cannabis
retailerii, today provided investors with a corporate
and retail sales update. The Company is successfully executing on
its growth strategy and has achieved over $60 million in retail sales since legalization,
with cumulative gross margin of 32%. The Company is targeting to
have 40 operating stores by the end of calendar 2019.
"NAC is already one of the highest revenue generators in the
Canadian cannabis space and by revenue, is the largest publicly
traded recreational cannabis retailer in the countryii.
In a highly regulated market like Canada, we view owning retail shelf space and
the data gleaned from millions of customer interactions as a
pipeline to accessing customers and developing long-term brands and
loyalty," said Mark Goliger, CEO of
NAC. "With one of the largest and most visible networks of retail
storefronts across Canada and a
proven track record of repeat customers, NAC is well-positioned to
continue playing a pivotal role in the growing industry. I am proud
of our team for bringing us to over $60
million since federal legalization and for generating
positive and growing Adjusted EBITDA on a retail basis, all while
significantly expanding our store network."
Mr. Goliger added, "As the cannabis industry continues to
evolve, and the introduction of new products is on the horizon, NAC
has a well-defined growth roadmap focused on building shareholder
value. We are focused on building value for shareholders as our
team continues to drive performance from existing stores,
introduces enhanced store concepts and executes on a robust
pipeline of new store locations. We believe that retail is the most
strategic segment of the cannabis value chain, as it is the
retailers who are able to interact directly with clients and
influence their purchasing decisions, it is the retailers who have
access to data associated with millions of customer transactions,
and it is the retailers who make the decision as to what products
to sell."
The Company's current portfolio of 35 licensed locations is
split as follows:
- 25 NewLeaf Cannabis™ stores in Alberta
- 9 Meta Cannabis Supply Co.™ stores in Manitoba
- 1 Meta Cannabis Supply Co.™ store in Saskatchewan
The newest retail locations:
Opened September 11,
2019
Leduc Plaza
Unit 103, 6207 - 50 Street
Leduc, Alberta
Opened September 11,
2019
North Hill
1535 - 19 Street NW
Calgary, Alberta
Opened October 2,
2019
Bridgeland
Unit C, 824 Edmonton Tr NE
Calgary, Alberta
Previous announcements regarding NAC's retail store expansion
may be found through the following links:
August 20, 2019, National Access
Cannabis Corp. Provides Sales Update for Retail Cannabis Operations
Since Federal Legalization
August 8, 2019, National Access
Cannabis Corp. Continues Growth by Announcing Licence to Open a New
Retail Cannabis Store in Alberta
for a Total of 35 Licensed Retail Stores Across Canada and New
Store Opening Update
July 30, 2019, National Access
Cannabis Corp. Continues Growth by Announcing Licences to Open Two
New Retail Cannabis Stores in Alberta for a Total of 34 Licensed Retail
Stores Across Canada
July 25, 2019, National Access
Cannabis Corp. Continues Growth by Announcing Licences to Open Two
New Retail Cannabis Stores in Alberta for a Total of 32 Licensed Retail
Stores Across Canada
July 3, 2019, National Access
Cannabis Corp. Continues Growth by Announcing Licences to Open Two
New Retail Cannabis Stores in Alberta for a Total of 30 Licensed Retail
Stores Across Canada
June 24, 2019, National Access
Cannabis Corp. Provides Sales Update for Retail Cannabis Operations
since Federal Legalization
About National Access Cannabis Corp.
With a portfolio
of 35 licensed retail locations nationwide, NAC is a leader in
secure, safe and responsible access to legal recreational cannabis
in Canada. Through its
Canada-wide network of Meta
Cannabis Supply Co.™ and NewLeaf Cannabis™ recreational cannabis
retail stores and NAC Medical's cannabis clinics and pharmacy
partnerships, NAC enables the public and registered patients to
gain knowledgeable access to Canada's network of authorized Licensed
Producers of cannabis. NAC is listed on the TSX Venture Exchange
under the symbol (TSXV: META).
For more information, visit:
www.nationalaccesscannabis.com
www.metacannabis.com
www.newleafcannabis.ca
www.nacbio.com
www.nacmedical.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Statements
This news release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward looking
statements or information. Forward-looking statements and
information in this news release includes, but is not limited to,
the number of NAC cannabis retail stores expected to open and/or
become licensed, the opening dates for NAC cannabis retail stores,
changes in NAC's cannabis retail store designs and concepts, access
to capital in the future and future revenue momentum, NAC
continuing to play a pivotal role in the cannabis industry in
Canada and the growth of the
Canadian cannabis market. Although the Company believes that the
expectations and assumptions on which the forward-looking
statements and information are based are reasonable, undue reliance
should not be placed on the forward-looking statements and
information because the Company cannot give any assurance that they
will prove to be correct. Since forward-looking statements and
information address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results and developments, including the number of NAC cannabis
retail stores expected to open, may differ materially from those
that are currently contemplated by these statements depending on,
among other things, risks relating to the AGLC reinstating its
moratorium, the ability to obtain or maintain licences to retail
cannabis products; future legislative and regulatory developments
involving cannabis, including Ontario opening up licensing to more private
retailers; inability to access sufficient capital from internal and
external sources, and/or inability to access sufficient capital on
favourable terms; general business, economic, competitive,
political and social uncertainties; timing and completion of
construction of the Company's retail locations; the delay or
failure to receive regulatory approvals; the competitive conditions
of the cannabis industry; the competitive and business strategies
of the Company; the labour market generally and the ability to
access, hire and retain employees; and the recreational and medical
cannabis industry in Canada
generally. The Company cautions that the foregoing list of risks
and uncertainties is not exhaustive. The forward-looking statements
and information contained in this news release are made as of the
date hereof and the Company undertakes no obligation to update
publicly or revise any forward-looking statement or information,
whether as a result of new information, future events or otherwise,
unless so required by applicable securities laws.
_________________________
|
i
|
From October 17, 2018
to October 15, 2019
|
ii
|
New Cannabis
Ventures, Public Cannabis Company Revenue & Income Tracker.
Largest publicly traded cannabis retailer by revenue.
|
iii
|
The Company had 24
retail locations in operation as of May 31, 2019 resulting in total
revenue of $35,933,941 from retail operations for the nine months
ended May 31, 2019.
|
iv
|
Adjusted EBITDA is a
non-IFRS measure that does not have a standardized meaning
prescribed by IFRS. For more information and a reconciliation of
non-IFRS measures to the closest IFRS measure, please refer to the
Company's press release entitled National Access Cannabis
Generates $17 million in Revenue in Q3 2019. Retail Cannabis Stores
Generate $16.8 million in Revenue, and Adjusted EBITDA of $2.3
million. Additional detail may be found in the "Non-IFRS
Financial Measures" section in the Company's Interim MD&A –
Quarterly Highlights for the three and nine-month period ended May
31, 2019, available on SEDAR and on the Company's
website
|
v
|
Adjusted EBITDA in
Q3-2019 grew 32.4% compared to Q2-2019. Adjusted EBITDA margin
expanded to 14% in Q3-2019, compared to 11% in Q2-2019
|
SOURCE National Access Cannabis Corp.