CLOSES ACQUISITION OF WATERLOO CANNABIS
STORE & ANNOUNCES PLANNED DIVESTITURE OF
TORONTO STORE
TORONTO, Aug. 27, 2020 /CNW/ - Meta Growth
Corp. (TSXV: META) ("Meta Growth", "META" or the
"Company"), a leading Canadian recreational cannabis retailer,
provided the following update today regarding its Ontario roll-out plans.
Closes Acquisition of Waterloo Store
As previously
reported on July 20, 2020, META has
now completed the acquisition of 2208292 Alberta Ltd. (the
"Target"), which carries on the business of operating the Bud &
Sally Cannabis Co. recreational cannabis retail store in
Waterloo, Ontario. The acquisition
was structured as a share purchase, whereby META acquired all
of the issued and outstanding shares of the Target for total cash
consideration of $1,150,001, of which
approximately $300,000 relates to inventory. The Bud
& Sally Cannabis Co. store opened in March 2020, and achieved $172,385 in weekly revenue for the week
ended August 15, 2020, with a 37.2%
gross margin.
Update Regarding Kitchener Store Acquisition
As
previously reported on July 20, 2020,
META announced that it had executed an asset purchase
agreement to acquire the Meta Cannabis Co. branded recreational
cannabis store in Kitchener,
Ontario. The closing of the acquisition is subject to the
Alcohol and Gaming Commission of Ontario ("AGCO") approving the
transaction. For the week ended August
15, 2020, the Kitchener
store achieved $159,022 in
weekly revenue, with a 37.2% gross margin.
Enters Definitive Agreement to Sell Retail Cannabis Store at
378 Yonge Street, Toronto,
Ontario
Meta Growth has made the decision to divest the 378 Yonge Street
store on the back of the Company's announcement on August 21, 2020, whereby META entered into a
definitive arrangement agreement pursuant to which High Tide Inc.
("High Tide") will acquire all of the issued and outstanding shares
of META (the "Plan of Arrangement"), resulting in the creation of
Canada's largest cannabis retailer
(the "Combined Entity"). High Tide currently has 7 branded retail
cannabis locations in Ontario,
with a Canna Cabana location 300 meters from the 378 Yonge Street
store. In evaluating the consolidated retail store portfolio
post-close between META and High Tide, it was determined that
divesting the 378 Yonge Street store would optimize the Combined
Entity's retail footprint in Ontario.
The Company has entered into a definitive agreement to sell its
retail cannabis store at 378 Yonge Street in Toronto, Ontario. The divestiture is
structured as a share transaction where all the issued and
outstanding shares of 11522302 Canada Inc., the company
which owns the 378 Yonge Street store, will be sold for a
total cash purchase price of $750,000, plus net working capital of the
business at the date of closing. The divestiture is subject to
customary closing conditions, including the receipt of a
no-objection letter from the AGCO which has already been received.
It is anticipated the transaction will close on or about
August 31, 2020, subject to all
parties satisfying the remaining conditions.
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 acquisition of the Meta
Cannabis Co. branded recreational cannabis store in Kitchener, Ontario, approval by the AGCO of
the acquisition of the Meta Cannabis Co. branded recreational
cannabis store in Kitchener,
Ontario, the closing of the divestiture of the 378 Yonge
Street store in Toronto, Ontario,
including the timing thereof and the satisfaction of applicable
closing conditions, 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) and
the optimization of the Combined Entity's retail footprint.
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
effects of the COVID-19 pandemic on the economy, the public markets
and the Company's business; the ability of the Company to close
the acquisition of the Meta Cannabis Co. branded
recreational cannabis store in Kitchener,
Ontario and the divestiture of the 378 Yonge Street store in
Toronto, Ontario; the delay
or failure to receive regulatory approvals including AGCO approval
for the acquisition of the Kitchener cannabis retail store and 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, including
disruptions in supply chains, as well as a deterioration of general
economic conditions including national and/or global recessions and
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.