Q1 out, 17.2 million in saleshighlights from MD&A, go to sedar.ca for all of it, good luck, keep washing your friggen hands
sorry about formatting, not my fault, lol
Q1 2020 & Subsequent Event Highlights
• System wide sales increased 814% to $17.2 million (vs $1.9 million in Q1 of 2019) and 24% (vs. $13.9 million in
Q4 of 2019).
• Total revenue increased 840% to $4.1 million (vs $0.4 million in Q1 of 2019).
• Negative Adjusted EBITDA was reduced to $0.1 million (vs. $1.5 million in Q1 of 2019)
• The effective execution and roll-out of Cannabis 2.0 products which includes edibles, concentrates, vaporizer
products, beverages and concentrates across the retail store network.
• The Spiritleaf Collective members’ program which as of the date of this MD&A has over 45,000 members
enrolled.
• The Company closed a private placement with Prairie Merchant Corporation for 6,000,000 common shares of
the Company (“Common Shares”), at a price per Common Share of $0.10, for aggregate gross proceeds of
$600,000. Concurrently, Prairie Merchant Corporation purchased another 6,000,000 Common Shares from a
licensed producer.
• The Company closed a private placement offering for gross proceeds of $1.1 million, issuing 10,854,542
Common Shares to a prestigious UK-based independent private equity firm and an additional private placement
for aggregate gross proceeds of $600,000, issuing 6,000,000 Common Shares at $0.10 per share for a total
amount invested of $1.7 million.
• Several of the Company’s LP shareholders cancelled an aggregate of 15,441,177 outstanding Common Share
purchase warrants that effectively reduced the ownership of the Company by LPs to less than 25%. This strategic
action along with the private placements enabled the Company to be eligible to apply for a Retail Operator
Licence (“ROL”) and to submit applications for Retail Store Authorizations (“RSAs”) for corporate-owned Spiritleaf
retail cannabis stores throughout Ontario.
• The Company appointed Manjit Minhas as Strategic Advisor which deepens the company’s retail market & white
label experience and adds government relations expertise.
• Company signed a master agreement with Atlantic Cultivation Limited to operate franchise Spiritleaf retail
cannabis stores in Newfoundland and Labrador.
• Spirit Leaf Ontario secured a ROL for corporate-owned Spiritleaf retail cannabis stores and met Ontario’s
eligibility criteria for operating cannabis outlets in the province.
• The Company entered into a purchase agreement to acquire the existing Kingston, Ontario Spiritleaf cannabis
store which has been operating under a retail agreement with an Ontario lottery winner and ROL holder since
April 1, 2019.
• Spiritleaf has received a special industry designation from the Canadian Franchise Association. The Franchisees’
Choice Designation was achieved due to exceptional survey satisfaction rankings from Spiritleaf franchise
partners across the country. The designation is part of the Canadian Franchise Association’s annual awards
program to recognize franchising’s best and brightest organizations.
Retail Store Network
The Company entered Q1 with 43 Spiritleaf stores and finished the quarter with 46 stores and subsequent to quarterend
opened two additional locations to bring the total Spiritleaf store count to 48.