Inner Spirit Holdings Ltd (ISH)

[Diogenes of Sinope]

The Race For Canadian Cannabis Retail Dominance Is On

Inner Spirit: A Canadian Cannabis Retailer that is Flying Under the Radar

Inner Spirit Holdings Ltd. (ISH.CN) has been laser focused on the Canadian cannabis retail market and has a network of recreational cannabis stores that operate under the Spiritleaf brand. The Spiritleaf network includes franchised and company-owned stores as well as an Ontario retail partnership. Spiritleaf has been able to secure strategic relationships with industry leaders like HEXO Corp (HEXO.TO) (HEXO) and Tilray, Inc. (TLRY) and we are favorable on this aspect of the story.

Earlier this year, Inner Spirit reported to have generated $29+ million in system-wide retail sales and served more than 700,000 customers in 2019. The Spiritleaf retail cannabis store network includes 43 franchised, licensed and corporate-owned stores in Alberta, British Columbia, Saskatchewan and Ontario. Over the next year, the management team expects to significantly increase the number of open stores and we are favorable on this opportunity for the business.

In addition to the previously announced nine additional franchise locations (expected to open in Alberta and British Columbia) in 2020, Inner Spirit is highly focused on expanding into other provinces. In the near future, the company plans to apply for additional retail operator licenses in Ontario and Saskatchewan. These are markets that we are favorable on and the entry into these provinces should prove to be a catalyst for growth.

One of the most important aspects of the Inner Spirit story is related to the relationships it has secured with leading Canadian Licensed Producers (LPs). We believe that the market does not fully understand how these relationships will support growth over the long-term and are of the opinion that it is missing out on something substantial.

Cannabis 2.0 in Canada is also expected to serve as a catalyst for growth and we are favorable on the leverage that Inner Spirit has to it. Through the launch of the Spiritleaf Collective members’ program, the company has enrolled more than 14,700 customers in just the first few weeks and we are favorable on the amount of value that can be created through this network. Inner Spirit represents a multi-faceted growth story and we will monitor how the management team is able to drive the operation forward.

https://www.technical420.com/cannabis-article/the-race-for-canadian-cannabis-retail-dominance-is-on/

ISH—GLTU/A