Alcanna Inc. (
TSX.CLIQ) – Canada’s largest private retailer of adult beverages – announced is spinning-off its retail cannabis business and combining it with competing retailer
YSS Corp. (
TSX-V.YSS) to build one of the largest networks of recreational marijuana stores in Canada,
as reported Monday.
The deal is the latest in a series of M&A’s in the cannabis retail sector, driven by companies looking to distinguish themselves in an increasingly competitive retail market in many parts of the country.
On closing, the resulting company, which is expected to be renamed Nova Cannabis Inc., will have 53 retail locations in Alberta, Saskatchewan and Ontario, plus another 9 locations under construction. As per the announcement, approximately 80% of New Nova’s locations 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.
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