EDMONTON, Alberta, Jan. 14, 2019 (GLOBE NEWSWIRE) --
NEW DISCOUNT LIQUOR PARTNERSHIP
Alcanna Inc. (the “Company” or “Alcanna”) (TSX: CLIQ), its subsidiaries, and Ace Liquor Corporation (“Ace”) have completed a series of transactions to form and vend stores into the Canadian Liquor Retailers Alliance Limited Partnership (the “Alliance”) as broadly contemplated in the Company’s November 8th, 2018 news release. In that release, the Company announced a non-binding letter of intent (“LOI”) with a discount liquor store operator in Alberta, Ace, to form a new partnership in the discount liquor store business. At this time, Liquor Stores Limited Partnership (“LSLP”), a wholly owned subsidiary of Alcanna, and Ace are the only limited partners of the Alliance with initial ownership of the Alliance partnership units of approximately 71% held by LSLP and 29% held by Ace; such percentage interests subject to customary post-closing adjustments. The Alliance’s general partner is wholly owned by Alcanna.
LSLP a wholly owned subsidiary of Alcanna, entered into a series of agreements to transfer 50 stores to the Alliance effective January 1, 2019. Thereafter, effective January 14th, 2019, similar transactions occurred transferring substantially all of Ace’s assets, including 12 opened, and 3 unopened stores from Ace to the Alliance and one unopened store from Ace to LSLP.
Tank Vander, founding partner and CEO of Ace, has been appointed the CEO of the Alliance and Donald Bobey, formerly Vice President, Merchandising at Alcanna has been appointed President and COO of the Alliance.
The Alliance has entered into a services agreement with Alcanna for various corporate and business support functions.
CORPORATE STRUCTURE CHANGES
In connection with the transfer of LSLP stores to the Alliance, the Company has used this as an opportunity to streamline and simplify its corporate structure which includes various corporate entities and partnerships resulting from previous acquisitions. In connection therewith, Liquor Barn Limited Partnership (“LBLP”), a wholly owned subsidiary of LSLP, was wound up and effectively distributed all of its net assets to LSLP (some of which were retained by LSLP and some of which were thereafter transferred to the Alliance). Additionally, Liquor Stores Income Fund, flow through entities between Alcanna Inc. and some of its operating entities, was wound up and dissolved. LBLP’s general partner and the trustee of Liquor Stores Income Fund will be dissolved in due course along with other immaterial entities all with the view to simplifying and optimizing the operating entities of the Company.
ABOUT ALCANNA INC.
Alcanna is one of the largest private sector retailers of alcohol in North America and the largest in Canada – directly owning and operating 174 retail liquor locations in Alberta, B.C. and Alaska in addition to the 62 Alliance stores. With revenues in excess of $600 million per year, Alcanna processes over 18 million individual retail transactions of beverage alcohol. As of October 17, 2018 Alcanna, opened the first five of its new retail cannabis stores under the “Nova Cannabis” brand in the Province of Alberta.
Alcanna's common shares and convertible subordinated debentures trade on the Toronto Stock Exchange under the symbols "CLIQ" and "CLIQ.DB", respectively.
Additional information about Alcanna Inc. is available at www.sedar.com and the Company’s website at www.alcanna.com. Further information about NOVA Cannabis can be found on our consumer website at www.novacannabisstore.com.
For Further Information
Vice Chair and Chief Executive Officer