EDMONTON, Alberta, Dec. 13, 2018 (GLOBE NEWSWIRE) -- Alcanna Inc. (the "Company" or “Alcanna”) (TSX:"CLIQ") announced today that it will eliminate its quarterly cash dividend effective immediately. As a result of the termination of its dividend, the Company's Dividend Reinvestment Plan (the “DRIP”) will also be terminated.
The Company has embarked on a capital-intensive growth strategy over the next 2-3 years. Capital will be invested in as many as 10 new Wine and Beyond stores in Alberta and possibly elsewhere, building out Nova Cannabis stores, funding the initial launch of the Canadian Liquor Retailers Alliance, as well as completion of the ERP and potential future acquisitions. The Company believes that it is in the best interests of the shareholders to invest all free cash flow in the growth opportunities available to the business which is expected to result in an increase in shareholder value over the medium term versus continuing dividend payments.
The Company intends to provide each DRIP participant notice of such termination in accordance with the terms of the DRIP.
ABOUT ALCANNA INC.
Alcanna (formerly Liquor Stores N.A. Ltd.) is one of the largest private sector retailers of controlled substances in North America and the largest in Canada – owning and operating 233 alcohol and cannabis retail locations in Alberta, B.C. and Alaska. With revenues in excess of $600 million per year, Alcanna processes over 20 million individual retail transactions.
Alcanna's innovative Wine and Beyond brand brought an entirely new concept to alcohol sales in Alberta in a large format experiential environment with over 10,000 different products to choose from, many sold only at Alcanna stores, at competitive prices while our Liquor Depot brand is ubiquitous throughout Alberta. Alcanna’s Nova Cannabis banner established itself as a market leader in Alberta in the early weeks of cannabis legalisation. 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 its website at www.alcanna.ca/investors.
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 “intend”, “anticipate”, "will", "should", “plan”, “expect” 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 Company’s growth strategy over the next 2-3 years; the use of capital, including to open new Wine and Beyond and Nova Cannabis stores, funding the initial launch of the Canadian Liquor Retailers Alliance, the completion of the Company’s ERP, potential future acquisitions, and for other purposes; and that such investment of capital will increase value for shareholders.
With respect to forward-looking statements contained in this news release, the Company has made assumptions regarding, among other things: the ability of management to successfully execute its growth strategy, deploy capital and increase shareholder value; and to open and successfully operate new Wine and Beyond and Nova Cannabis locations.
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. These risks and uncertainties include, among other things: the ability of management to execute the Company’s growth strategy; the risk that capital deployed will not increase shareholder value; and the other factors described in the Company’s public filings (including the Annual Information Form) available at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
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.
For further information
Executive Vice President and Chief Financial Officer