Meta Growth Closes Acquisition of Kitchener Cannabis Store
TORONTO -- 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.
1Estimated 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.
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.
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.