CALGARY, AB / ACCESSWIRE / July 2, 2019 / CanadaBis Capital Inc. (“CanadaBis” or “the Company”) has entered into an agreement to acquire all the outstanding shares of 2103157 Alberta Ltd. operating as Indicative Collection (the “Acquiree”), which holds a cannabis retail store development license in Red Deer, Alberta. Located in the heart of Gasoline Alley, this storefront will face one of Alberta’s busiest avenues and provide easy access to travelers passing through the Red Deer hub.
Regulatory approvals, including municipal, as well as Alberta Gaming, Liquor & Cannabis (“AGLC”) have been obtained and the store is in the final stages of opening. The Sales License from AGLC is expected to be granted in early Q4.
On June 29, 2019, the Company’s Board of Directors approved the corporate acquisition of the acquiree. The retail company is owned by CanadaBis’s President & CEO, Travis McIntyre. Under the terms of the agreement, CanadaBis will pay $100 for all outstanding shares of the Acquiree, which represents the initial equity investment made by Mr. McIntyre. The current net assets of the Acquiree are internally estimated at approximately $1.2 million. Mr. McIntyre has approved this transaction which will transfer the shares at a significantly discounted rate to the fair market assessment conducted. By completing this transaction, it will provide a strategic diversification to the company’s generation of cash flows, direct feedback from the customer relating to the Stigma product, as well as the ability to order Stigma product for direct access to retail customers. This transaction is anticipated to close in July 2019 and is subject to any required regulatory approvals.
“We were extremely pleased with our vertical integration into the retail space and plan to continue with acquisitions of this nature. Time spent on developing a superior store brand and location were the key elements to securing this under the CanadaBis umbrella. Indicative Collection will serve as a precedent to our future store expectations under CanadaBis,” stated Travis McIntyre, President and CEO of CanadaBis. “We feel that this is a critical component in the cannabis industry and is another major step for CanadaBis’s future success.”
The Acquiree will join CanadaBis in conjunction with its production and processing facility also located in Red Deer County. Stigma currently operates 22,000 sq/ft of production space and plans to expand this area to 66,000 sq/ft later this year. The Company received a standard cultivation and processing license from Health Canada on March 8, 2019, and has recently harvested its first crop. Stigma is anticipating the harvest of its second crop in early July of 2019 and is currently working on a strong Alberta brand catering to a quality experience. Proudly offering a craft product with optimal cannabinoid profiles, Stigma is the first Health Canada licensed producer operating in the Red Deer area.
For more information on CanadaBis Capital, Stigma Grow or Indicative Collections, please visit www.canadabis.com or contact:
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to our business and operations including development and expansion plans and the timing thereof. Forward-looking statements are necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: compliance with extensive government regulation, the general business, economic, competitive, political and social uncertainties; requirement for further capital, delay or failure to receive board, shareholder or regulatory approvals; the results of operations and such other matters as set out in the Filing Statement available on SEDAR at www.sedar.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking statements. Investors are cautioned that forward-looking information is not based on historical facts but instead reflects management’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although we believe that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on our future results, performance or achievements.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. CanadaBis Capital does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
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SOURCE: CanadaBis Capital Inc.
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