National Access Cannabis (TSXV:META) announced its decision to exercise an option to acquire the shares of The Green Company, operating as NewLeaf, for C$23.5 million shares in escrow and C$5.8 million in cash.
As quoted in the press release:
To facilitate a timely closing, the parties to the Option also entered into an addendum and amending agreement dated September 10, 2018. The Acquisition is subject to customary closing conditions and is expected to close prior to the end of the business day on September 10, 2018. The proceeds of the Acquisition will be placed in escrow and will be paid to the former NewLeaf shareholders as cannabis retail licences are granted to NewLeaf, or, returned to NAC.
NewLeaf has submitted 25 cannabis retail license applications for locations in Alberta, with 20 development permits granted and with five more development permits expected. Currently, 17 NewLeaf retail cannabis locations are under construction in Alberta with a target opening date of October 17, 2018, subject to regulatory approvals. NAC will continue to operate these locations under the NewLeaf brand, keeping regional management teams intact. The Acquisition allows NAC to increase its retail presence and offer a second brand choice for cannabis customers, above and beyond the Meta Cannabis Supply Co. brand and retail footprint planned for Manitoba, Saskatchewan, Alberta, British Columbia and Ontario (pending license approvals).