TORONTO, Sept. 21, 2020 /CNW/ - Meta Growth
Corp. (TSXV: META) ("Meta Growth", "META" or the
"Company"), a leading Canadian recreational cannabis retailer,
today announced the closure of the previously announced acquisition
of the Meta Cannabis Co. branded recreational cannabis store in
Kitchener, Ontario.
META announced, on January 9,
2020, that it entered into an agreement with one of the
winners of the Ontario cannabis
retail store lottery to act as a consulting partner and service
provider related to a cannabis retail location in Kitchener, Ontario. The Kitchener store opened on February 28, 2020, and achieved $186,124 in weekly revenue for the week
ended September 19, 2020, with a
36.11% gross margin. The acquisition was structured as an
asset purchase agreement, with consideration comprised of
$150,000 in cash and the assumption
of related party debt as at the date of close.
With the completion of the Kitchener acquisition, META currently has 2
operating stores in Ontario, and
has submitted 10 Retail Store Authorization applications with
the Alcohol and Gaming Commission of Ontario.
As previously announced on August 21,
2020, META and High Tide Inc. ("High Tide") entered into a
definitive arrangement agreement pursuant to which High Tide will
acquire all of the issued and outstanding shares of META (the
"Plan of Arrangement"). The combined entity following completion of
the Plan of Arrangement (the "Combined Entity") is expected to be
the largest Canadian cannabis retailer, by revenue, in
addition to ranking #1 in Ontario based on
corporate owned store count1. High Tide
currently has 7 Canna Cabana branded stores in Ontario.
1
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Estimated ranking is
based on corporate owned locations and comparisons to public peers'
publicly disclosed information. The Combined Entity is expected
to have 9 corporate retail locations operating in Ontario
on transaction close.
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About Meta Growth
Meta Growth is a leader in secure,
safe and responsible access to legal recreational cannabis in
Canada. Through its Canada-wide network of Meta Cannabis Co.™,
Meta Cannabis Supply Co.™ and NewLeaf Cannabis™ recreational
cannabis retail stores, Meta Growth enables the public to gain
knowledgeable access to Canada's
network of authorized Licensed Producers of cannabis. On
August 21, 2020, Meta Growth
announced that it entered into a definitive arrangement agreement
with High Tide in connection with the Plan of Arrangement, whereby
High Tide will acquire all of the issued and outstanding shares of
Meta Growth. The Combined Entity will create Canada's largest cannabis retail network with
63 stores across Canada. It is
expected that, subject to receipt of all regulatory, court,
shareholder and other approvals, the Plan of Arrangement will be
completed in the fourth quarter of 2020. Meta Growth is listed on
the TSX Venture Exchange under the symbol (TSXV: META).
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,
statements regarding the closing of the Plan of Arrangement,
including the timing thereof and the satisfaction of applicable
closing conditions, including receipt of all regulatory, court,
shareholder and other approvals in connection with the Plan of
Arrangement, and statements with respect to the overall retail
footprint of the Combined Entity (including number of stores).
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 may differ
materially from those that are currently contemplated by these
statements depending on, among other things, risks relating to:
the delay or failure to receive regulatory approvals with
respect to the Plan of Arrangement; future legislative and
regulatory developments involving the retail cannabis markets;
inability to access sufficient capital from internal and external
sources, and/or inability to access sufficient capital on
favourable terms; the retail cannabis industries generally,
including changing industry trends; income tax and regulatory
matters; the ability of High Tide and Meta Growth to implement
their business strategies; competition; crop failure/conditions;
general business, economic, competitive, political, regulatory and
social uncertainties and conditions; adverse industry events;
marketing costs; loss of markets; the COVID-19 pandemic nationally
and globally, which could have a material adverse impact on the
Company's business, operations and financial results and on public
markets generally, including disruptions in supply chains, as well
as a deterioration of general economic conditions including
national and/or global recessions; the response of governments to
the COVID-19 pandemic in respect of the operation of retail stores;
and currency and interest rate fluctuations and other
risks. 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.
SOURCE Meta Growth Corp.