Westleaf Inc (TSXV: WL) announced today that it was exercising its option to acquire all remaining percent of Canndera Canada Inc. Back in December, Westleaf announced it had received 21.4 of all common shares and secured an option to purchase the remaining 78.6 percent at a price of $48.4 million in the future should they wish. At an approximate price of $2.24 per share, the acquisition is expected to be finalized around January 31st.
Canndara boasts a variety of locations alongside the possession of 17 development permits awarded throughout Western Canada. Acquiring these locations would supplement Westleaf’s existing retail presence, which has increased from 20 to 30 stores to around 50 that are all expected to be fully operational and licensed in 2020. Operating mainly under their signature Prairie Records brands, the retail stores are considered as some of the best premium locations in the area, combining tactile in-store product samples, music, and other features for the sake of creating a sophisticated retail experience.
“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 Westleaf CEO and President Scott Hurd. “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.”
A number of these retail locations are built on prime real estate, including a flagship store in the iconic Palace Theatre in Calgary, another near the University of Alberta, and many more. Once the transaction is finalized, Westleaf would become one of Canada’s largest premium cannabis retailers.
“The synergy that exists between Canndara and Westleaf is rooted in our collective vision to build a leading cannabis brand in Canada”, said Canndara CEO John Radostits back when the acquisition as announced in December. “Our team’s hard work to build a robust portfolio of strategic locations along with Westleaf’s strong team, the Prairie Records brand and unique retail strategy, have established a formula for success. Together, we are carving out our position as a trailblazer in the cannabis industry with a truly revolutionary cannabis purchasing experience for Canadians.”
Last month, Westleaf, which was known as IGC Resources at the time, completed a reverse takeover that ended up creating the business entity known as Westleaf Cannabis today. This RTO was announced a week after the pending acquisition of Canndera was announced. In response to the news, Westleaf shares jumped up 12.6 percent, sitting at C$2.59 as of writing.
Westleaf Inc Company Profile
Westleaf is a vertically integrated cannabis company focused on innovative retail experiences and engaging cannabis brands. Westleaf is rolling out a national retail footprint for its retail concept “Prairie Records”, with stores planned for British Columbia, Alberta, Saskatchewan and potentially Ontario. The retail concept leverages the instinctual tie between recreational cannabis and music and redefines the cannabis purchasing experience. – Westleaf
Canndara Company Profile
Canndara is a warm inviting retail experience that offers the best cannabis selection, service and education. Our collection of fine cannabis stores will be strategically located in high profile locations in major cities and key rural communities across Canada. – Canndara