The reverse takeover involved the arm's length acquisition of Alcanna Inc.'s wholly-owned subsidiaries, Alcanna Cannabis Stores GP Inc. and Alcanna Cannabis Stores Limited Partnership for consideration of 35,750,000 shares at $3.00 per share.
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I’m Ashton Addison for Investmentpitch Media
Nova Cannabis Inc. is one of the latest new listings on the TSX Venture Exchange, trading under the symbol “NOVC, following its reverse takeover of YSS Corp (TSXV:YSS).
The reverse takeover involved the arm's length acquisition of Alcanna Inc.'s wholly-owned subsidiaries, Alcanna Cannabis Stores GP Inc. and Alcanna Cannabis Stores Limited Partnership for consideration of 35,750,000 shares at $3.00 per share.
Alcanna (TSX:CLIQ), one of the largest private sector retailers of alcohol in North America and the largest in Canada by number of stores, with 196 locations in Alberta and British Columbia, through its subsidiaries, operates 34 cannabis retail stores, with 33 locations in Alberta and one location in Ontario.
These stores, which range in size from 1,200 to 5,600 square feet, consist of 18 under the "Nova Cannabis" brand, 12 under the "Value Buds" brand, and 4 under the "Deep Discount Cannabis" brand, with another 13 stores under development in 2021.
Alcanna’s retail cannabis businesses will combine with YSS to launch a new discount-focused cannabis retailer to be renamed Nova Cannabis Inc.
YSS has developed a retail cannabis business with 19 licensed retail stores in Alberta and Saskatchewan, operating under the YSS™ and Sweet Tree™ brands.
The majority of Nova’s cannabis retail locations, including locations previously operated by YSS, are expected to be re-branded as "Value Buds" and will target the value-conscious consumer, an under-served segment of the market that is estimated to account for approximately 70% of total recreational cannabis market in Canada, both legal and illicit.
Alcanna will provide management and administrative services to Nova, at a cost that is anticipated to be far less than a stand-alone company could achieve, until Nova reaches the critical size to bring those services in-house.
Alcanna will also provide lease guarantees for Nova and make available to Nova an operating line of credit for up to $10 million for growth, including new store builds, acquisitions and general corporate and working capital purposes.
The company recently closed a brokered private placement, raising gross proceeds of $40 million from the placement of 13,334,000 shares priced at $3.00 per share.
The shares are trading at $3.30.
For more information, please visit the company’s website www.NovaCannabis.ca, contact David Gordy, CFO, at 780-497-3262 or email David.Gordy@NovaCannabis.com.
I’m Ashton Addison for Investmentpitch Media
