Progress Towards Building A Strong Canadian Brand
TORONTO, Oct. 27, 2023 /CNW/ - Shiny Health & Wellness Corp. (the "Company" "SNYB") (TSXV: SNYB) signs a letter of intent ("LOI") with Stash & Co. ("SC") to acquire all of Stash & Co.'s adult use cannabis retail stores.
The Company announces an LOI to acquire 10 SC adult use cannabis retail stores with forecasted 2023 revenues of approximately CAD$10,000,000. As part of this transaction SNYB will be the sole owner of 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 intends to welcome all current SC customer-facing retail employees to continue providing a differentiated brand and customer experience.
Based upon the Company's review of the diligence materials to date, management meetings, and assuming satisfactory results of confirmatory due diligence, the Company would complete the transaction based on an aggregate purchase price equal to $1,000,000; CAD$800,000 in cash and CAD$200,000 in common shares in the capital of SNYB. 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. SC will have the option, exercisable within 90 days after the closing date, for Karan Someshwar Holla to have a directorship on the board of directors of SNYB., subject to approval by the TSXV. The purchase transaction is subject to customary AGCO approvals. The Company and SC have agreed to a 30-day due diligence period to review pertinent information to consummate the purchase, plus a 90-day exclusivity period until such time that they sign a definitive transaction agreement for the acquisition.
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.
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 establishing m?h? Health & Wellness, a new line of business focused on building a network of community pharmacies, with 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 trades on the TSX Venture Exchange (TSXV) under the ticker symbol SNYB. For more information, please visit www.shinyhealthandwellness.com.
SOURCE Shiny Health & Wellness Corp.
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