New Leaf Emporium Sold For $1.6 Million
It hasn’t been in operation for even six months and already New Leaf Emporium Inc has been sold for a cash and stock agreement worth $1.6 million.
As part of the deal the three local proprietors of New Leaf Emporium Inc will receive $1.2 million in cash and $400,000 in shares (649,880 shares) from National Access Cannabis Corporation (NAC).
Terms of the sale also include NAC's wholly owned NAC Prairies reimbursing the ownership of New Leaf Emporium Inc for certain expenses incurred while setting up their store.
The locally owned and operated shop, located at 602 Main Street North, was set up after Ira Dales, Alexander (Alex) Carleton and Jack Carleton Sales Limited were selected as one of two retailers in a lottery of eligible applicants by the Province.
New Leaf was one of the first cannabis retailers in Saskatchewan to open its doors once government regulated recreational cannabis sales and use was legalized in mid-October.
“We're growing our footprint into Saskatchewan," said Mark Goliger, CEO of NAC in the news release.
“We've worked diligently to be the national leader in cannabis retail, having opened 21 stores to date in the complex regulatory markets of Alberta and Manitoba, and with our experience, Saskatchewan is an ideal expansion market for NAC. We have what's required: great relationships with Licensed Producers, existing e-commerce infrastructure, and retail operator know-how. Moose Jaw is the right market to start, with the New Leaf Emporium store operational today as one of only 2 stores serving a population of 35,000. We're ready to lead the way for customers in three provinces through a proven model of safety, education and customer service while delivering sustained returns and increased growth for our shareholders,” Goliger said in the statement.
The cash and shares are presently in escrow awaiting approval of the sale by the Saskatchewan Liquor and Gaming Authority (SLGA). A message to the SLGA was not returned on Friday.
NAC became the largest cannabis retailer in the country in November 2018 and it operates 21 stores – 14 NewLeaf Cannabis stores in Alberta and 7 Meta Cannabis Supply Company in Manitoba.
According to the release NAC is moving into the Saskatchewan market and the Moose Jaw operation will allow it to not only sell locally but also market on-line in Saskatchewan.