CannaRoyalty and Trichome Investee, 180 Smoke’s Subsidiary Approved for First Cannabis Dispensary Location in the City of Calgary
- 420 Wellness Inc., a subsidiary of investee 180 Smoke, has applied for three dispensary licenses in Alberta including its recently approved Development Permit for the Calgary location.
- 15 strategically located GTA stores provide potential upside based on Ontario’s private retail cannabis plans.
- 180 Smoke has recently secured 6 Tier-1 leases in Hamilton, Ontario and 1 in Niagara Falls, Ontario, which have cannabis optionality.
- 180 Smoke has grown revenues 51% YTD, to $6.78 million as of August 2018.
All financial figures in Canadian Dollars ($) unless otherwise noted.
Toronto, Ontario – September 24, 2018 – CannaRoyalty Corp. (CSE: CRZ) (OTCQX: CNNRF) (“CannaRoyalty” or the “Company”), a North American cannabis products and brands company, and its subsidiary, Trichome Financial Corp. (“Trichome”) announced that 420 Wellness, a subsidiary of investee 180 Smoke (“180 Smoke”), has been approved by the City of Calgary to open its first cannabis dispensary in the city, pending approval from the Alberta Gaming and Liquor Commission (“AGLC”).
Since CannaRoyalty and Trichome’s previously disclosed initial investment in May 2018, 180 Smoke has expanded its retail footprint with a focus on increasing the company’s presence outside of the Greater Toronto Area (GTA). In addition to the recently approved Calgary location, 180 Smoke is opening two vape store locations in Edmonton, AB. In the GTA, 180 Smoke recently opened a flagship location on Queen Street West, which is the fastest growing store in the network. On the back of an expanding retail footprint and continued same-store sales growth, 180 Smoke has grown revenues 51% year-over-year to $6.78 million for the eight-month period ended August 2018, for an annualized revenue pace of roughly $11 million.
“180 Smoke’s capital-efficient retail model has enabled the company to grow store count while maintaining an authentic consumer experience. They have created a niche in the minds of discerning vape and cannabis consumers in Canada, while maintaining one of the highest trafficked vape website in Canada. We initially invested in 180 Smoke due to the strength of both the existing vape operations as well as the upside we saw with impending adult-use cannabis legalization in Canada. We expect continued growth and expansion from 180 Smoke and congratulate the team on being selected among numerous applicants to open a Calgary location. I speak for both CannaRoyalty and Trichome when I say we are confident that this investment will generate value for CannaRoyalty’s shareholders both as a standalone investment and strategically as CannaRoyalty looks to build-out its Canadian operations in the near-term,” said Marc Lustig, Chairman and CEO of CannaRoyalty.
Ashutosh Jha, President of 180 Smoke added, “We are pleased to announce this exciting milestone in our company’s accelerating expansion in Canada. With a growing retail footprint and significant brand awareness among cannabis consumers, 180 Smoke, and soon 420 Wellness, are perfectly positioned to capture a significant portion of the Canadian cannabis and vaporizer market. With backing from CannaRoyalty and Trichome as well as interest from leading REIT’s, we look forward to opening our first cannabis dispensary in Calgary and expanding both our vape and cannabis presence across Canada.”
Additionally, in response to the Ontario government’s recent announcement to institute a private cannabis retail model, 180 Smoke has launched an effort to establish a presence in the Ontario retail cannabis marketplace. Leveraging its portfolio of 16 locations in the GTA and a leading in-house retail team, 180 Smoke is strongly positioned to gain from the rapid expansion of a retail cannabis market, where legally permissible. 180 Smoke recently secured 6 leases in Hamilton region and 1 in Niagara Falls, Ontario, which have strong potential as cannabis retail locations.
Following the federal government’s decision to legalize recreational cannabis by October 17, 2018, the City of Calgary approved amendments in April 2018 that will enable the future retail sale of legalized cannabis in Calgary. The City is currently reviewing applications and approved applications must also be approved by the Alberta Gaming and Liquor Commission.
About 180 Smoke
180 Smoke is a leading Canadian vape product retailer that is considered the Gold Standard for vape store operations and customer service. 180 Smoke sells vape and nicotine-related products, herbal vaporizer products and parts. With the corporate mission of “significantly reducing harm done to human health from addictive substances,” 180 Smoke’s vision is to become a multi-region, omni-channel, vertically integrated market leader servicing the end-to-end needs of Canadian nicotine and cannabis consumers.
Trichome is a majority-owned subsidiary of CannaRoyalty and was formed to offer credit-based capital solutions to companies operating across the Canadian cannabis value chain. Trichome expects to offer creative credit-based capital solutions to cannabis companies in need of capital for a broad array of requirements. Trichome is focused primarily on addressing the largely underserviced Canadian cannabis market and expects to expand to meet the needs of companies operating in fully legal international markets as those jurisdictions develop.
CannaRoyalty is a North American cannabis consumer product company currently focused on building a leading distribution business in California, the world’s largest regulated cannabis market. By building a world-class logistics platform and supporting contract manufacturing assets, the Company intends to support the growth of new and established cannabis brands. The Company believes California, home to some of the world’s most discerning consumers and a nexus of information and trends, will be the point of inception for the global cannabis brands of the future. CannaRoyalty has developed a diversified portfolio of assets within the cannabis sector, including research, infrastructure and intellectual property to support our existing brands, partner products and distribution networks. The Company’s leadership and staff combines passion and a hands-on understanding of the cannabis industry, with proven financial and legal expertise. CannaRoyalty’s Common Shares trade on the Canadian Stock Exchange (CSE) under the symbol CRZ and in the US on the OTCQX under the symbol CNNRF.
For further inquiries, please contact:
Jonathan Ross, CannaRoyalty Investor Relations
LodeRock Advisors Inc.
For Trichome lending inquiries, please contact:
Michael Ruscetta, CEO
Trichome Financial Corp.
For 180 Smoke inquiries, please contact: