Calgary-based Westleaf has exercised its option to acquire 100% of cannabis retail company Canndara Canada Inc.
As a result of the transaction, Westleaf has increased its guidance from 20 to 30 cannabis retail locations in Canada to approximately 50 locations, that are expected to be operating by the end of 2020, subject to provincial and municipal licensing and regulations.
In December, Westleaf purchased 21.4% of the Class “A” common voting shares of Canndara and secured an option to acquire the remaining 78.6% of the Canndara Shares.
The initial deal cost Westleaf C$7.5 million cash, while today’s remainder acquisition required C$48.4 million in an all-stock transaction.
The purchase price is payable in common shares in the capital of Westleaf at a deemed value of $2.24 per Common Share. Closing is expected to occur on or about January 31, 2019.
Canndara’s locations are at varying stages of development with 17 development permits already awarded in Western Canada.
“Since the announcement of our original investment we continue to be impressed with the progress of the development of the Canndara retail portfolio and how well it complements the Westleaf Prairie Records retail locations. This acquisition will position Westleaf to become one of the largest premium cannabis retailers in Western Canada.” said Scott Hurd, President and CEO of Westleaf.
“Cannabis retail is the cornerstone of our vertically integrated strategy as the unique Prairie Records concept enables Westleaf to engage with consumers and build brand equity and loyalty for its stores and produced product brands.”
Examples of prime locations in the portfolio will include, following closing, the only approved development permits adjacent to the University of Alberta complemented by Westleaf’s premium locations under development in Calgary and Banff, including a flagship Prairie Records store in the iconic Palace Theatre in Calgary.
Focusing exclusively on densely populated neighbourhoods, high traffic areas, and tourist destinations, Prairie Records retail stores will be situated in some of the most premium retail locations across the country, said Westleaf .
Prairie Records stores are planned for British Columbia, Alberta, Saskatchewan and potentially Ontario.Cannabis Business Worldwide