WINNIPEG, Manitoba, Nov. 21, 2019 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Delta 9 Cannabis Inc. has announced that it has entered into a definitive agreement with Modern Leaf Group Inc. and Mr. Preston Drummond to acquire all or substantially all of Modern Leaf’s assets located in the Province of Alberta relating to two proposed retail cannabis stores. The acquisition will be completed through the company’s wholly-owned subsidiary, Delta 9 Cannabis Store Inc. Kronos Capital Partners acted as financial advisor to the Modern Leaf Group on the transaction.
"We are pleased to have reached definitive agreements with Modern Leaf on this previously announced transaction," said John Arbuthnot, founder and CEO of Delta 9. "Following completion of this acquisition we will have a total of six operating retail stores in Western Canada and we are actively looking to increase this number as quickly as possible."
The purchase price for the proposed transaction is $1,300,000, subject to customary adjustments. $1,000,000 of the purchase price will be satisfied through the issuance of 1,250,000 common shares in the capital stock of the company, a price per common share of $0.80 based on the closing market price of the common shares on the Toronto Stock Exchange (TSX) on Sept. 19, 2019, such date being the date that the company and Modern Leaf entered into a previously announced binding letter of intent with respect to the proposed transaction. $150,000 of the purchase price will be paid a deposit that is non-refundable except where the proposed transaction does not proceed due to the occurrence of certain events, or the discovery or disclosure of certain information, described in the Modern Leaf Agreement. If the proposed transaction proceeds, the deposit will be applied against the purchase price, and the $150,000 balance of the purchase price will be satisfied in cash on closing of the proposed transaction.
The Modern Leaf agreement and the proposed transaction are subject to, among other conditions: (i) the obtaining of all required third party and governmental consents, authorizations and licenses required in connection with the proposed transaction and the operation of the proposed Alberta cannabis stores following the proposed transaction, including, without limitation, all consents, authorizations and licenses required to be issued by Alberta Gaming, Liquor & Cannabis (AGLC); and (ii) the approval of the TSX.
Subject to satisfaction of the conditions precedent set out in the Modern Leaf Agreement, management of the company anticipates the closing of the proposed transaction to occur on or prior to March 30, 2020.
