Progress Towards Building A Strong Canadian Brand
TORONTO, Dec. 15, 2023 /CNW/ - Shiny Health & Wellness Corp. (the "Company" "SNYB") (TSXV: SNYB) signs Asset Purchase Agreement ("APA") with Karan S. Holla for his Stash & Co. ('SC") Ontario chain of 10 adult-use cannabis retail stores.
"We are excited to add a strong, above-average revenue producing cannabis dispensary group to our Ontario platform. Increasing our loyalist program and reaching more consumers is key to our success as we build our retail reach in Ontario and beyond to the USA and Europe. Karan was granted one of the very first retail cannabis licenses and we are extremely fortunate to be working side by side with him during this transition. I have met wonderful mentors the last few months advising us on the Ontario marketplace and their value-add cannot be measured just yet but I hope that the best is yet to come for our shareholders and supporters," said Meris Kott, CEO, Shiny Health & Wellness Corp.
The Company's previously announced letter of intent on October 27, 2023 for SNYB to add 10 SC adult use cannabis retail stores with forecasted 2023 revenues of approximately CAD$10,000,000 is now consummated by an APA signed on December 14, 2023 with Mr. Holla. The Stash & Co. brand and trademark and the dispensaries will not be rebranded and remain Stash and Co. SC is an award-winning brand with stores across Ontario, including Toronto, Ottawa, London, Kitchener, Oshawa and Collingwood, as well as being one of the original cannabis stores in Canada with one of the most experienced staff in the cannabis industry. The Company will add the Stash & Co. brand to its ShinyBud and BudGet Bud cannabis consumer program to reach near 100,000 loyalists.
The Company will continue its final due diligence and assignment of leases to complete the transaction based on a total consideration equal to $1,000,000; CAD$800,000 in cash and CAD$200,000 in common shares in the capital of SNYB. Upon approval by the TSXV of the transaction, Shiny Health & Wellness will issue an initial tranche of 250,000 common SNYB shares at .10 per share for the value of $25,000; upon completion of the final due diligence and approval by the TSXV, SNYB will issue a second tranche of common SNYB shares for the value of $25,000 to Mr. Holla; the price per share of the second tranche will be determined by the share price at that time. The cash component of $800,000 plus the final tranche of SNYB common shares valued at $150,000 will be tendered at the closing of the entire transaction. The purchase transaction is subject to customary AGCO approvals as well as current landlord assignments of the current store leases. The value of inventory remaining in the SC stores as of the closing date, shall be an aggregate amount equal to $300,000, based on wholesale prices paid by the vendor to the Ontario Cannabis Store. Karan S. Holla will have the option to have a directorship on the board of directors of SNYB., subject to standard regulatory approvals.
About Shiny Health & Wellness:
Shiny Health & Wellness Corp. is on a mission to help people never settle, live fully by being a trusted source for health and wellness solutions and services. The Company recently broadened its retail growth strategy beyond adult-use cannabis by purchasing its first pharmacy in Cornwall, Ontario. Striving to provide a more diverse and accessible cannabis experience for adult consumers, the Company also operates ShinyBud Cannabis Co., a well-established brand in Ontario strategically located in markets less saturated with cannabis retailers. The Company's board of directors and management team hold extensive retail operating experience, a key competitive differentiator in leading its growth strategy. Shiny Health & Wellness Corp. trades on the TSX Venture Exchange (TSXV) under the ticker symbol SNYB. For more information, please visit www.shinyhealthandwellness.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "intends", or "believes", or variations (including negative and grammatical variations) of such words and phrases or state that certain acts, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".
These statements are based upon assumptions that are subject to significant risks and uncertainties, including risks regarding the cannabis industry, commodity prices, market conditions, general economic factors, management's ability to manage and to operate the business, and explore and develop the projects, and the equity markets generally. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward-looking statements. Any number of factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although the Company believes that the expectations reflected in forward looking statements are reasonable, they can give no assurances that the expectations of any forward-looking statements will prove to be correct. Except as required by law, the Company disclaims any intention and assume no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.
SOURCE Shiny Health & Wellness Corp.
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