Spiritleaf Announces Additional Investment from Tilray and Provides Ontario Update
CALGARY, April 8, 2019 /CNW/ - Inner Spirit Holdings Ltd. ("Inner Spirit" or "the Company") (CSE:ISH) today announced that further to the initial investment and strategic partnership with Tilray, Inc. ("Tilray") (NASDAQ:TLRY) and its wholly owned subsidiary High Park Holdings Ltd. that was announced in December 2018, Tilray has increased its total investment in Inner Spirit to $6 million by providing the Company with a $1.5 million secured short-term loan at a rate of 12.0% per annum.
This additional investment by Tilray is a testament to the strength of the relationships Spiritleaf has built with our strategic partners. When you add the initial success of our local ownership franchise model, the dozen pending corporate stores at high-traffic locations throughout Alberta, and the additional franchise locations we intend to open across the country, Spiritleaf is well positioned to execute on its business plan
said Darren Bondar, President and CEO of Inner Spirit.
The Company also provided an update on its operations in Ontario as a new Spiritleaf retail store opened in Kingston, Ontario on April 1, 2019. Store sales have exceeded $230,000 in the first seven days of operation with more than 4,800 customers served. Under the terms of the retail and licensing agreement, Spirit Leaf Inc., which is a wholly owned subsidiary of the Company, receives a retail licensing fee of five percent of sales with an additional one percent contributed to Spiritleaf's national marketing fund.
Inner Sprit has an additional five Spiritleaf retail franchise stores open and operating in Calgary, Brooks, St. Albert and Lethbridge, Alberta and in Moose Jaw, Saskatchewan with another 70 locations across the country under various stages of permitting and construction.
Inner Spirit is establishing a network 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 plans to operate corporate outlets in certain jurisdictions. The Company is simultaneously developing a diverse portfolio of proprietary quality and curated lifestyle cannabis products positioning the company 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.
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 receipt of necessary licenses and permits to open recreational cannabis stores and the timing thereof; the intention of the Company to open, or license others the right to open, Spiritleaf retail cannabis stores in Ontario; the opening of Spiritleaf-branded franchise and corporate retail cannabis stores in Alberta, Saskatchewan and British Columbia; and the intention to grow the Company's business and operations. 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 additional stores may not open due to national retail cannabis supply issues;; the risk that the Company or its franchisees are not able to open additional retail cannabis stores in Canada or in Ontario; and other factors outside of the Company's control. Readers are cautioned that the foregoing list of factors and risks is not exhaustive. Although the Company believes that the expectations and assumptions 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 they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. The forward-looking statements included in this news release are made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.
SOURCE Inner Spirit Holdings