EDMONTON, Alberta, May 27, 2019 (GLOBE NEWSWIRE) -- Alcanna Inc. (the “Company” or “Alcanna”) (TSX: CLIQ) today announced that the Canadian Liquor Retailers Alliance Limited Partnership (the “Alliance”), which Alcanna owns approximately 71% of, has entered into an agreement with FTI Consulting Canada Inc. in its capacity as of May 1, 2019 as court-appointed receiver and manager of the assets, properties and undertakings of Solo Liquor Stores Ltd. and Solo Liquor Holdings Ltd.
Under the terms of the agreement, the Alliance will acquire the underlying assets of twenty-eight (28) stores currently operating as Solo Liquor, three (3) additional leased locations that have not yet been opened, the “Solo Liquor” brand and related trademarks in exchange for $12.4 million plus inventory estimated at $3.4 million. The acquisition, which will be funded by the Company’s existing credit facilities, is anticipated to close in late June 2019.
Alcanna and the Alliance analysed each of the approximately 90 Solo locations currently operating, recently closed or with unconditional leases and selected the 28 operating stores and 3 leases which best fit the existing network of Ace and Liquor Depot stores. Twenty-two (22) of the twenty-eight (28) stores being acquired were opened for a full year in 2017, which was the last full year of operations before Solo encountered financial and operational difficulty, and reported total sales of approximately $84.5 million and $5.8 million of in-store/4-wall EBITDA in that year.
The completion of the transaction is subject to customary conditions for a transaction of this nature including, amongst other things, the Court granting an approval and vesting order transferring the assets that are the subject of the Purchase Agreement prior to June 30, 2019.
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 236 locations in Alberta, British Columbia and Alaska. The Company also operates six cannabis retail stores under the “Nova Cannabis” brand, with five locations in the Province of Alberta and one the Province of Ontario. With revenues in excess of $700 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.
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 anticipated closing of the transaction to acquire the assets from Solo Liquor, and the Court granting an approval and vesting order. 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 risk that the Purchase Agreement will not be approved by the Court, 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.
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Vice Chair and Chief Executive Officer