News Press Releases

Inner Spirit Holdings Announces Five New Spiritleaf Cannabis Stores Set to Open in Ontario

June 8, 2020

Company also has seven additional locations preparing to receive licences and begin operations
as Spiritleaf's national expansion program continues

CALGARY, AB, June 8, 2020 /CNW/ - Inner Spirit Holdings Ltd. ("Inner Spirit" or the "Company") (CSE: ISH), a Canadian company that has established a national network of Spiritleaf retail cannabis stores, today announced that five franchise partners have secured Retail Store Authorizations ("RSAs") for Spiritleaf cannabis stores located in Toronto, Ottawa and Guelph, Ontario. The RSAs were granted by the Alcohol and Gaming Commission of Ontario ("AGCO") as part of the regulator's plan to increase the number of legal cannabis retail stores in the province. The Company also noted there are seven additional Spiritleaf stores which have completed construction and are in the final stages of licensing in Calgary and Red Deer, Alberta; in Toronto, Ottawa and London, Ontario; and in St. John's, Newfoundland and Labrador.

"We are very excited to continue our expansion of the Spiritleaf brand across the country and set deeper roots into Ontario. We were there for Ontario on April 1, 2019 when through a licensing agreement with one of the initial lottery winners we opened the first private recreational cannabis store in Kingston. We have a regional Spiritleaf office in Toronto, a strong support team in place, and a great group of talented entrepreneurs ready to open their doors to their local communities throughout the province," said Darren Bondar, President and CEO of Inner Spirit.

The new Ontario stores are expected to open later this month at the following locations. Please visit www.spiritleaf.ca for information on opening dates and store operating hours.

Bloor West Village, Toronto
College Street (Little Italy), Toronto
Lawrence Avenue (Don Mills), Toronto
Wellington West Village, Ottawa
Edinburgh Market Place, Guelph

Dave Marino, the Company's Ontario General Manager and a Spiritleaf franchise owner, added, "The majority of our planned locations in Ontario will be franchise owned which aligns with our business model. We will support this core group of stores with a select number of corporate-owned outlets including the anticipated acquisition of the Kingston store this month and a flagship corporate store in Ottawa that is currently in the AGCO licensing queue. Overall, we believe the benefits of local entrepreneur ownership line up perfectly with the policy objectives of the Ontario government in crafting their retail cannabis laws, namely, to support small business."

The Company provides Spiritleaf franchise owners with a turn-key operation that leverages its expertise in cannabis retail through store design, training, point of sale and accounting systems, standard operating procedures, and support from Spiritleaf's award-winning national support centre. Spiritleaf is a member of the Canadian Franchise Association and franchise opportunities are available across Canada. Prospective cannabis retail operators are invited to learn more and apply at https://innerspiritholdings.com/franchise/.

The Spiritleaf retail cannabis store network includes 48 franchised, licensed, and corporate-owned stores operating in Alberta, British Columbia, Saskatchewan, and Ontario. Additional store locations are expected to open in 2020 in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Newfoundland and Labrador. Please visit www.spiritleaf.ca for up-to-date information on store locations and operating hours. Due to the COVID-19 pandemic, Spiritleaf stores are operating with enhanced customer service processes to ensure the safety of employees and customers. Spiritleaf's Select & Collect service enables customers to pre-shop and order online prior to pick-up. Customers can also connect with their local Spiritleaf store through The Collective customer benefits program to further streamline and individualize their shopping experience.

Due to interest in Spiritleaf's local store ownership model in Ontario, media are asked to make initial contact with the Company at media@spiritleaf.ca so interviews and industry commentary can be arranged.

About Inner Spirit

Inner Spirit Holdings Ltd. (CSE:ISH) is a franchisor and operator of Spiritleaf recreational cannabis stores across Canada. The Spiritleaf network includes franchised and corporate locations, all operated with an entrepreneurial spirit and with the goal of creating deep and lasting ties within local communities. Spiritleaf aims to be the most knowledgeable and trusted source of recreational cannabis by offering a premium consumer experience and quality curated cannabis products. The Company is led by passionate advocates for cannabis who have years of retail, franchise and consumer marketing experience. Spiritleaf received a Franchisees' Choice Designation in 2020 from the Canadian Franchise Association for its award-winning national support centre. The Company's key industry partners and investors include Auxly Cannabis Group Inc. (TSX.V:XLY), HEXO Corp (TSX:HEXO), Tilray, Inc. (NASDAQ:TLRY) and Prairie Merchant Corporation. Learn more at www.innerspiritholdings.com and www.spiritleaf.ca.

Forward-Looking Information

This news 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 is typically, but not always, identified by the use of words such as "set", "anticipated", "will", "expected" and similar words, including negatives thereof, or other similar expressions concerning matters that are not historical facts. Forward-looking information in this news release includes, but is not limited to, statements regarding: the new Spiritleaf retail cannabis stores expected to open in Ontario later this month; the anticipated acquisition of the Kingston store; and the additional locations expected to open in 2020 in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Newfoundland and Labrador. Such forward-looking information is based on various assumptions and factors that may prove to be incorrect, including, but not limited to, factors and assumptions with respect to: the ability of the Company to successfully implement its strategic plans and initiatives and whether such strategic plans and initiatives will yield the expected benefits; and the receipt of necessary licences from regulatory authorities. Although the Company believes that the assumptions and factors on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that it will prove to be correct or that any of the events anticipated by such forward-looking information will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. Actual results could differ materially from those currently anticipated due to a number of factors and risks including, but not limited to: the risk that the Company and its franchisees do not receive the necessary retail cannabis licences or that they are not able to open additional retail cannabis stores, including in Ontario, as anticipated or at all; the ability of management to execute its business strategy, objectives and plans; and the impact of general economic conditions in Canada. The forward-looking information included in this news release is made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise, unless required by applicable securities legislation.