EDMONTON, Alberta, April 15, 2020 (GLOBE NEWSWIRE) -- Alcanna Inc. (the "Company" or "Alcanna") (TSX: CLIQ) today provided an update on the impact of the recent novel coronavirus ("COVID-19") pandemic on its business and operations.
Alcanna's top priority is the health and safety of our team members and our customers. Alberta, BC and Alaska have all declared liquor and cannabis retail to be essential services and the Company's 283 stores in those markets remain open (the Company's Nova Cannabis store on Queen Street West in Toronto is now operating on a click-and-collect format only as per Ontario rules effective April 4, 2020).
Being an essential service comes with the responsibility to be leaders in compliance of all physical distancing, hygiene and sanitization practices. Alcanna has implemented comprehensive measures in all of its stores to ensure the health and safety of its customers and team members including:
A full list of measures taken by the Company to ensure the safety of its customers and team members can be found on the Company's website at alcanna.com/COVID-19.
Alcanna's liquor and cannabis stores in all regions experienced sales significantly higher than normal during the last three weeks of March. This elevated demand subsided once customers were assured by provincial and state governments that liquor and cannabis stores were being classified as essential services and would remain open.
While the Company's operations have not been materially impacted to date, the situation surrounding COVID-19 remains fluid and there are obvious risks for all businesses associated with the pandemic - which the Company shares. The Company continues to work closely with customers, government officials, team members and business partners to respond to the ever-changing situation. To date, supply of products remains unaffected by COVID-19 as distillers, wineries, brewers and cannabis licensed producers have also been declared essential services. Despite many team members self-isolating for 10-14 days, the Company has a full complement of team members working in stores and has received over 500 applications for employment in recent weeks.
The Company is focused on protecting its balance sheet in response to this uncertainty. Inventory levels have been carefully reduced and the capital expenditure plans for 2020 as outlined in the Company's Management Discussion and Analysis for the year ended December 31, 2019 dated March 11, 2020 have been temporarily suspended. The timing of each project will be re-assessed in the context of the COVID-19 situation. The Company has sufficient capital and credit availability to finance operating requirements and for general corporate purposes.
ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS
Due to public health restrictions on mass gatherings and in order to protect the health and safety of Alcanna's shareholders, team members and guests, Alcanna has decided to postpone its annual and special meeting of shareholders to a later date; currently expected to be on or about June 25, 2020. Alcanna will provide notice in accordance with applicable laws, of the revised meeting date, time, location and any special procedures to be undertaken.
This news release contains forward-looking statements or information (collectively "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as "continue", "anticipate", "will", "should", "plan", "intention", and similar words suggesting future events or future performance. All statements and information other than statements of historical fact contained in this news release are forward-looking statements. In particular, this news release contains forward-looking statements pertaining to the impact that COVID-19 may have on the Company's operations and sales, growth and capital expenditures plans, and capital and credit availability. With respect to forward-looking statements contained in this news release, the Company has made assumptions regarding, among other things: the severity of COVID-19; the duration of the pandemic; governmental, business or other actions which could include limit our operations or mandates to provide products or services; our suppliers ability to meet customer demand; the health of our workforce; the ability to continue to attract new employees to meet staffing needs in our stores, distribution facility and other critical functions; the outlook for global economic conditions and volatility in the credit and financial markets; consumer spending; and the impact that COVID-19 will have on our customers, vendors, suppliers, and other business partners.
Although the Company believes that the expectations reflected in the forward-looking statements, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations and assumptions will prove to be correct. Readers should not place undue reliance on forward-looking statements included in this news release. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that may cause actual performance and financial results to differ materially from any estimates, forecasts or projections.
The forward-looking statements contained in this news release are made as of the date hereof. Except as expressly required by applicable securities legislation, Alcanna does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
ABOUT ALCANNA INC.
Alcanna is one of the largest private sector retailers of alcohol in North America and the largest in Canada by number of stores ? operating 253 locations in Alberta, British Columbia and Alaska. The Company also operates 31 cannabis retail stores under the "Nova Cannabis" brand, with thirty locations in the Province of Alberta and one in the Province of Ontario. With revenues in excess of $800 million per year, Alcanna processes over 20 million individual retail transactions of beverage alcohol and cannabis.
Alcanna's common shares and convertible subordinated debentures trade on the Toronto Stock Exchange under the symbols "CLIQ" and "CLIQ.DB", respectively.
For Further Information
Vice Chair and Chief Executive Officer
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