Solo Growth Announces Licensing Agreement and Acquisition of Call Right on Operating Retail Cannabis Store in Red Deer, Alberta
March 20, 2019 (GLOBE NEWSWIRE) -- Solo Growth Corp.™ (the “Company” or “Solo Growth”) (TSXV: SOLO) is pleased to announce that it has entered into and closed a definitive agreement, effective March 20, 2019, with respect to a call right on all of the voting shares of a licensed operating retail cannabis store in Red Deer, Alberta for aggregate cash consideration of $2.6 million (the “Call Right”). Concurrent with the acquisition of the Call Right, the Company entered into a perpetual licensing agreement to rebrand and operate the store under the YSSTM banner (together with the Call Right, the “Acquisition”).
Opened November 22, 2018, the location has an established market presence with a growing customer base;
One of two currently licensed legal cannabis retailers in Red Deer, operating as “Green Town”;
Aggregate revenue from opening to February 28, 2019 of $1.3 million;
Store level adjusted cash flow of approximately $335,000 in the first 98 calendar days since opening; and
Located near downtown Red Deer with 15 dedicated parking stalls, near a major shopping centre.
The Acquisition will establish the first operating YSSTM branded store in Canada and provides the Company with immediate revenue equal to the cash flow generated at the retail location.
“The Acquisition aligns well with our corporate strategy to complement our robust organic growth profile with strategic opportunities that drive near and long-term shareholder value”, said Theo Zunich, President and CEO. “We look forward to inviting customers to our first branded store, YSS Red Deer, in the near future”.
All required regulatory approvals, including from
Alberta, Gaming, Liquor & Cannabis (“AGLC”), have been obtained and the Acquisition closed today. The Company may exercise the Call Right in its sole and absolute discretion at any point in time for nil consideration. Eight Capital acted as strategic advisor to the Company in connection with the Acquisition.
For additional information regarding Solo Growth please see the corporate website at www.sologrowth.ca and filings available under the Company’s profile on SEDAR at www.sedar.com.
About Solo Growth Corp.TM
Operating as YSSTM, the Company is a cannabis retailer with the vision to become a premier retailer and the trusted destination for cannabis in Canada. Since its launch in June of 2018, the Company has built a strategic portfolio of locations while managing financial commitments. The Company has a licensing agreement and Call Right on one operating store in Red Deer, Alberta, has built and received AGLC inspections on five additional Alberta stores, and has a further two Alberta locations nearing completion of construction. An additional 16 AGLC applications are being reviewed for construction priority within the current regulatory environment. YSSTM management brings excellence across capital markets, financial management and a strong commitment to deliver shareholder value by leveraging high-quality opportunities within this exciting new industry. The YSSTM retail experience is built on our five fundamental pillars: convenience, value, selection, team, and above all else, trust.
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Solo Growth Corp.™
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