CALGARY, Feb. 5, 2019 /CNW/ - Inner Spirit Holdings Ltd.
("Inner Spirit" or "the Company") (CSE:ISH) today announced further progress on its corporate store strategy by acquiring
additional locations in Calgary and Canmore, Alberta. Inner
Spirit is developing a retail network of Spiritleaf branded cannabis retail locations across Canada.
The Company is building its corporate store portfolio in Alberta with approximately 10 wholly
owned corporate locations to support its franchise network and enhance top-line revenue growth. The franchise network is being
developed with more than 100 franchise agreements signed and four locations currently open in Alberta and Saskatchewan with a fifth location expected to open in
Calgary the week of February 11.
"We are focused on creating a national Spiritleaf brand and providing consistent experiences and quality products for cannabis
consumers. We're doing this with a blend of corporate and franchise stores, so we enter markets effectively and efficiently to
build the brand. Prime strategic corporate locations like the ones acquired today provide us with flagship stores, a growing
source of revenue and a platform for our expansion across the country," said Darren Bondar, President and CEO of Inner
Spirit.
The Company, through its wholly owned subsidiary Spirit Leaf Corporate Inc., has entered into an agreement with a Spiritleaf
franchise partner to purchase the assets of three proposed cannabis retail stores. The acquisition presented a unique opportunity
for the Company, as the retail stores will be in Calgary's high traffic 17th Avenue
downtown mission district and two premier locations in Canmore. The stores have received
their municipal recreational cannabis store development permits and construction is expected to commence shortly.
Total consideration payable for the locations is $2,000,000, of which $1,500,000 is being paid through the issuance of 7,075,472 common shares of Inner Spirit at an issue price
equal to $0.212 per share, being the 10 day volume weighted average price of the Inner Spirit
common shares for the period ended February 1, 2019, as well as $250,000 in cash and a $250,000 promissory note due one year after the closing of
the acquisition.
About Inner Spirit
Inner Spirit is establishing a chain of recreational cannabis stores under its Spiritleaf brand. Supporting local
entrepreneurs by applying its award-winning franchise and retail models, Inner Spirit has more than 100 franchise agreements in
place for potential Spiritleaf locations and also plans to operate corporate outlets in certain jurisdictions. Developing a
diverse portfolio of quality and curated lifestyle cannabis products – including Spiritleaf's own locally sourced lines –
Spiritleaf is positioned to be an iconic Canadian brand and the most trusted source for recreational cannabis. More information
can be found on Inner Spirit's website at www.innerspiritholdings.com.
Forward-looking statements
This press release contains statements and information that, to the extent that they are not historical fact, may constitute
"forward-looking information" within the meaning of applicable securities legislation. Forward-looking information may include
financial and other projections, as well as statements regarding future plans, objectives or economic performance, or the
assumption underlying any of the foregoing. In some cases, forward-looking statements can be identified by terms such as "may",
"would", "could", "will", "likely", "except", "anticipate", "believe", "intend", "plan", "forecast", "project", "estimate",
"outlook", "potential", or the negative thereof or other similar expressions concerning matters that are not historical facts.
Examples of such statements include, but are not limited to, statements with respect to the objectives and business plans of the
Company; the establishment of recreational cannabis stores in Canada; the intention to grow the
Company's business and operations; the receipt of necessary licenses and permits to open stores and the timing thereof; the
regulation of cannabis for recreational use in Canada, including federal and provincial
regulations pertaining thereto; the competitive conditions of the industries in which the Company operates; and laws and any
amendments thereto applicable to the Company.
SOURCE Inner Spirit Holdings
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