what will it take to get CLIQ to move up.. ALCANNA INC. CLOSES CANADIAN LIQUOR RETAILERS ALLIANCE TRANSACTION AND ANNOUNCES STREAMLINED CORPORATE STRUCTURE
Alcanna Inc., its subsidiaries and Ace Liquor Corp. have completed a series of transactions to form and vend stores into the Canadian Liquor Retailers Alliance Limited Partnership as broadly contemplated in the company's Nov. 8, 2018, news release. In that release, the Company announced a non-binding letter of intent ("LOI") with a discount liquor store operator in Alberta, Ace, to form a new partnership in the discount liquor store business. At this time, Liquor Stores Limited Partnership ("LSLP"), a wholly owned subsidiary of Alcanna, and Ace are the only limited partners of the Alliance with initial ownership of the Alliance partnership units of approximately 71% held by LSLP and 29% held by Ace; such percentage interests subject to customary post-closing adjustments. The Alliance's general partner is wholly owned by Alcanna.
LSLP a wholly owned subsidiary of Alcanna, entered into a series of agreements to transfer 50 stores to the Alliance effective January 1, 2019. Thereafter, effective January 14th, 2019, similar transactions occurred transferring substantially all of Ace's assets, including 12 opened, and 3 unopened stores from Ace to the Alliance and one unopened store from Ace to LSLP.
Tank Vander, founding partner and CEO of Ace, has been appointed the CEO of the Alliance and Donald Bobey, formerly Vice President, Merchandising at Alcanna has been appointed President and COO of the Alliance.
The Alliance has entered into a services agreement with Alcanna for various corporate and business support functions.
CORPORATE STRUCTURE CHANGES
In connection with the transfer of LSLP stores to the Alliance, the Company has used this as an opportunity to streamline and simplify its corporate structure which includes various corporate entities and partnerships resulting from previous acquisitions. In connection therewith, Liquor Barn Limited Partnership ("LBLP"), a wholly owned subsidiary of LSLP, was wound up and effectively distributed all of its net assets to LSLP (some of which were retained by LSLP and some of which were thereafter transferred to the Alliance). Additionally, Liquor Stores Income Fund, flow through entities between Alcanna Inc. and some of its operating entities, was wound up and dissolved. LBLP's general partner and the trustee of Liquor Stores Income Fund will be dissolved in due course along with other immaterial entities all with the view to simplifying and optimizing the operating entities of the Company.