Meta Growth Closes Acquisition of Kitchener Cannabis Store
TORONTO, Sept. 21, 2020 – Meta Growth Corp. (TSXV: META) (“Meta Growth”, “META” or the “Company”), a leading Canadian recreational cannabis retailer, today announced the closure of the previously announced acquisition of the Meta Cannabis Co. branded recreational cannabis store in Kitchener, Ontario.
META announced, on January 9, 2020, that it entered into an agreement with one of the winners of the Ontario cannabis retail store lottery to act as a consulting partner and service provider related to a cannabis retail location in Kitchener, Ontario. The Kitchener store opened on February 28, 2020, and achieved $186,124 in weekly revenue for the week ended September 19, 2020, with a 36.11% gross margin. The acquisition was structured as an asset purchase agreement, with consideration comprised of $150,000 in cash and the assumption of related party debt as at the date of close.
With the completion of the Kitchener acquisition, META currently has 2 operating stores in Ontario, and has submitted 10 Retail Store Authorization applications with the Alcohol and Gaming Commission of Ontario.
As previously announced on August 21, 2020, META and High Tide Inc. (“High Tide”) entered into a definitive arrangement agreement pursuant to which High Tide will acquire all of the issued and outstanding shares of META (the “Plan of Arrangement”). The combined entity following completion of the Plan of Arrangement (the “Combined Entity”) is expected to be the largest Canadian cannabis retailer, by revenue, in addition to ranking #1 in Ontario based on corporate owned store count1. High Tide currently has 7 Canna Cabana branded stores in Ontario.
1 Estimated ranking is based on corporate owned locations and comparisons to public peers’ publicly disclosed information. The Combined Entity is expected to have 9 corporate retail locations operating in Ontario on transaction close.
About Meta Growth
Meta Growth is a leader in secure, safe and responsible access to legal recreational cannabis in Canada. Through its Canada-wide network of Meta Cannabis Co.™, Meta Cannabis Supply Co.™ and NewLeaf Cannabis™ recreational cannabis retail stores, Meta Growth enables the public to gain knowledgeable access to Canada’s network of authorized Licensed Producers of cannabis. On August 21, 2020, Meta Growth announced that it entered into a definitive arrangement agreement with High Tide in connection with the Plan of Arrangement, whereby High Tide will acquire all of the issued and outstanding shares of Meta Growth. The Combined Entity will create Canada’s largest cannabis retail network with 63 stores across Canada. It is expected that, subject to receipt of all regulatory, court, shareholder and other approvals, the Plan of Arrangement will be completed in the fourth quarter of 2020. Meta Growth is listed on the TSX Venture Exchange under the symbol (TSXV: META).
For further information: on Meta Growth, visit: metagrowth.com; Meta Growth: Mark Goliger, Chief Executive Officer, Meta Growth, Tel: 647-689-6382, [email protected]; Media Inquiries: Matt Ryan, VP of Marketing, Meta Growth, Tel: 647-633-9330, [email protected]