RE:Inner Spirit Holdings Provides Update Franchises and Franchise Opportunities
More than 100 Franchise Locations Granted in Western Canada
Inner Spirit has made tremendous progress since November of 2017, nearly doubling the number of recreational franchise agreements ahead of expected legalization on October 17, 2018. Inner Spirit's franchisees have committed to contribute up to $45 million collectively to open Spiritleaf stores in their local communities.
Licenses & Stores
BC – In July, the BC government announced its legislative framework for the legalization of non-medical cannabis. The maximum number of cannabis retail store licenses that may be obtained by an individual or Company, until the limit is further reviewed in 2021, is eight. Along with its franchise partners, the Company has secured the maximum eight potential Spiritleaf locations in BC, which are all conditional upon receiving the necessary municipal and provincial permits. The Company and its franchise partners are preparing to submit their applications to the Liquor and Cannabis Regulation Branch.
Alberta – Collectively, the Company and its franchise partners have submitted applications to the Alberta Gaming and Liquor Commission ("AGLC") and various municipalities to operate stores throughout Alberta. Conditional locations have been secured in Lethbridge, Medicine Hat, Brooks, Camrose, Cochrane, Canmore, Banff, Calgary, Airdrie, Red Deer, Beaumont, Edmonton, St. Albert, Sherwood Park, Grand Prairie, Fort McMurray, Lac La Biche, Drayton Valley, Fort Saskatchewan and Cold Lake. The Company, through its franchise partners, has received its first 10 conditional development permits in Calgary, Edmonton and Lethbridge. Inner Spirit continues to work toward the maximum of 37 stores anticipated to open in Alberta, which is the maximum number permitted by a single operator under provincial regulations in year one.
Saskatchewan – Inner Spirit's franchise partner, 102037242 Saskatchewan Ltd., has been selected as a cannabis retailer for Moose Jaw, the province's fourth largest city. The Company recently received its development permit for this location, has begun leasehold improvements and, along with its franchise partners, looks forward to sharing the Spiritleaf experience with the Moose Jaw community. The Company has also selected Shopify for its Saskatchewan e-commerce solution so that individuals across the province can purchase from Spiritleaf online in a safe, secure and reliable manner.
Manitoba – The Company is preparing to submit a pre-qualification application to the Province of Manitoba by the August 31 st deadline to operate Spiritleaf locations in Manitoba. The Company has committed to allocate at least 33% of its franchises in Manitoba to Indigenous entrepreneurs and has received a letter of support from Chief Keith Pashe of the Dakota Tipi First Nation. Inner Spirit believes that its franchise model presents a positive opportunity for Indigenous economic development and creates new economic opportunities for all Manitobans. In addition, Inner Spirit believes its approach aligns with the province's goal to have 90 per cent of Manitobans able to access legal cannabis within a 30-minute drive or less within two years of legalization.
Ontario – The Company has been preparing for private retail in Ontario since 2017 and has already received hundreds of inquiries from prospective franchise partners to operate Spiritleaf stores in their local communities. Should the government of Ontario announce that private retail will be permitted, the Company will formally announce its strategy for that market.