New conspiracy theory I know we're all high on the recent bevy of awesome news. But I just learned of something that may be worth entertaining in the near future.
So Second cup (with their JV with META) has recently announced furthering their goal of pivoting into both the Cannabis space, along with the food industry. They've come out and said that they need expertice in the Cannabis industry as they dont have a strong grip on it, but that the intent was to buy up some smaller companies in both industries moving forward...
Now as I connect the dots like Charlie with Pepe Silvia, lets take a bit of a look into the players involved in this.
As we all know, one of the shareholders of ALEF, is the Serruya brothers. They invested $10 million into ALEF, with ALEF investing 4 million into their Flying High Brands, and 1 million into One Plant. Seems like a nice synergy on face value alone right?
Digging a little deeper, with this recent announced news by Second Cup. Low and behold. One of the investors behind them is SPE (Serruya Pricate Equity). The four individuals from SPE who as a result of converting an $8 million dollar loan into second cup, are the proud owners (if they execute their warrants in full) of 28.89 % of the equity. Not only can they own more than 1/4 of the company, but have the right to nominate 2 board members.
Bingo.
Now, I'm not certain how that would entierly translate to ALEF, but given that we own 9.9% of oneplant, one can imagine that Second cup will be eyeing them first having 2 SPE nominated board members. Heck, if they combine that with what META currently operates (along with new second cup locations) we could see one of the biggest Dispensary chains spanning both Canada and the US.
Even if ALEF opts to sell its 9.9% equity stake, it will go for a much higher penny than the original 1m investment I can only speculate.