TORONTO, July 20, 2020 /CNW/ - Meta Growth
Corp. (TSXV: META) ("Meta Growth", "META" or the
"Company"), a leading Canadian recreational cannabis retailer,
today announced that it has executed definitive purchase agreements
for stores in both Waterloo and
Kitchener.
Waterloo Store
META has executed a share purchase
agreement to acquire the Bud & Sally recreational cannabis
retail store in Waterloo,
Ontario for total cash consideration of $1,150,001, of which ~ $300,000 relates to inventory. The closing
of the acquisition is subject to the Alcohol and Gaming Commission
of Ontario ("AGCO") authorizing
the change of control of the business to META, as well as other
customary closing conditions.
The Bud & Sally store opened in March
2020, and achieved $131,965 in weekly revenue for the week
ended July 11, 2020, with a 36.3%
gross margin. John Radostits, CEO of Bud & Sally said, "I
am delighted that our Waterloo
store is joining META's retail enterprise network. This is an
exciting opportunity for our dedicated and talented team to benefit
from the support offered by one of Canada's leading recreational cannabis
retailers."
Kitchener Store
In addition, META announced that it
has also executed an asset purchase agreement to acquire the Meta
Cannabis Co. branded recreational cannabis store in Kitchener, Ontario for total
consideration of approximately $1,400,000, of which ~ $160,000 relates to inventory. The
consideration is comprised of $150,000 in cash and the assumption of
approximately $1,250,000 in related
party debt. For the week ended July 11,
2020, the Kitchener store achieved $139,332 in weekly revenue, with a 37.7% gross
margin. META previously announced on May 26, 2020 that it executed a binding letter of
intent to purchase the Kitchener store. The closing of the
acquisition is subject to the AGCO authorizing the change of
control of the business to META, as well as other customary closing
conditions.
"We are excited to be adding Bud & Sally and Meta Kitchener to our
portfolio of corporate stores" said Mark Goliger, CEO of Meta Growth. "These
two acquisitions complement META's organic growth strategy in
Ontario where we are advancing through the Retail Store
Authorization process. We look forward to continuing to serve
the Bud & Sally patrons with the exceptional customer
service that they have become accustomed to from the
beautifully appointed store in the heart of Waterloo which benefits from ~ $460,000 of capital
expenditures."
Postponement of Filing of Q3 Financial Statements and
MD&A under Temporary Exemption
The Company also wishes to announce that filing
of its interim financial statements for the nine month period
ended May 31, 2020 ("Q3 Financial
Statements") and associated management's discussion and analysis
("Q3 MD&A", and collectively with the Q3 Financial Statements,
the "Q3 Filings") have been postponed as the Company attempts
to catch-up to its filing schedule after postponing the filing of
its Q2 Financial Statements and MD&A because of resource
constraints associated with COVID-19.
Although the Q3 Filings would ordinarily have been filed on or
before July 31, 2020, pursuant
to OSC Ontario Instrument 51-502 - Temporary
Exemption from Certain Corporate Finance Requirements (the
"Order"), the Company has up to an additional 45 days from the
deadline otherwise applicable under Ontario securities laws to
file the Q3 Filings, provided that it complies with certain
requirements set out in the Order. Accordingly, the Company is
relying on the relief contained in the Order for its Q3 Financial
Statements required by section 4.4 of National Instrument 51-102
and its Q3 MD&A required by subsection 5.1(2) of National
Instrument 51-102.
The Company estimates that the Q3 Filings will be filed no
later than September 11,
2020. During the extension period, until the Company has
filed and announced the required Q3 Filings, management and other
insiders of the Company will be subject to an insider trading
black-out policy that reflects the principles in Section 9 of
National Policy 11-207 - Failure-to-File Cease Trade Orders and
Revocations in Multiple Jurisdictions.
There have been no material business developments since the date
of the Company's interim financial statements for the six months
ended February 29, 2020, which were
filed on May 21, 2020,
other than: (i) the announcement that the Company executed a
binding letter of intent to purchase the Meta Cannabis Co. branded
recreational cannabis store in Kitchener,
Ontario, disclosed in a press release issued on May 26, 2020; (ii) the closure of the sale of the
Company's common shares in Tetra Pty Ltd to THC Global Group
Limited, disclosed in a press release issued on June 1, 2020; (iii) the divestiture of the
Company's Canadian medical clinics business unit to The Clinic
Network Canada Inc., disclosed in a press release issued on
June 26, 2020; and (iv) the
acquisition of the Meta Cannabis Co. branded recreational cannabis
store in Toronto, Ontario,
disclosed in a press release issued on July
2, 2020.
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. Meta Growth
is listed on the TSX Venture Exchange under the symbol (TSXV:
META).
For more information on Meta Growth, visit:
metagrowth.com
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.
Cautionary Statements
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 proposed timing of the filing of the Q3
Filings, the approval by the AGCO of the acquisitions of the
Bud & Sally cannabis retail store and the Kitchener Ontario cannabis retail
store, the closing of the acquisitions of the Bud &
Sally cannabis retail store and the Kitchener cannabis retail
store, approval by applicable regulatory bodies of the
transactions, and the opening and operating
additional cannabis retail stores in Ontario. 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 effects of the COVID-19
pandemic on the economy, the public markets and the Company's
business and on the ability of the Company to prepare and approve
the Q3 Filings in a timely manner, the ability of the Company to
close the acquisitions of the Bud & Sally cannabis retail
store and the Kitchener cannabis
retail store; receipt of Retail Store Authorizations for
Ontario cannabis retail stores;
future legislative and regulatory developments; inability to
access sufficient capital from internal and external sources,
and/or inability to access sufficient capital on favourable terms;
general business, economic, competitive, political, regulatory and
social uncertainties; the delay or failure to receive regulatory
approvals; the COVID-19 pandemic nationally and globally which
could have a material adverse impact on the Company's business,
operations and financial results, including disruptions in supply
chains, as well as a deterioration of general economic conditions
including national and/or global recessions and the response of
governments to the COVID-19 pandemic in respect of the operation of
retail stores; and the recreational cannabis industry in
Canada generally. 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.
SOURCE Meta Growth Corp.
