The move is part of an expansion quest.
Toronto-based cannabis operator Shiny Health & Wellness Corp. (TSXV: SNYB) on Thursday signed a definitive agreement to acquire Stash & Co., an Ontario-based marijuana retail chain.
The deal, valued at C$1 million, marks a significant expansion for Shiny Health & Wellness in the Canadian cannabis retail market.
The Dec. 14 signed asset purchase agreement follows an initial Oct. 27 letter of intent. The acquisition includes 10 retail locations of Stash & Co. and involves a payment of C$800,000 in cash and C$200,000 in common shares of SNYB.
Meris Kott, CEO of Shiny Health & Wellness, said in a statement that the acquisition aligns with the company’s long-term strategy.
“We are excited to add a strong, above-average revenue producing cannabis dispensary group to our Ontario platform,” Kott said. “Increasing our loyalist program and reaching more consumers is key to our success as we build our retail reach in Ontario and beyond to the (U.S.) and Europe.”
Stash & Co. established a strong presence in key Ontario cities, including Toronto, Ottawa, and London. Post-acquisition, the Stash & Co. brand will continue to operate under its existing name. Shiny Health & Wellness aims to integrate the acquired stores into its customer programs, enhancing its market reach.
The completion of this transaction is subject to the usual due diligence processes and regulatory approvals, including the assignment of store leases and valuation of inventory, which is estimated at $300,000.
As part of the agreement, Stash & Co. founder Karan S. Holla has the option to join the board of directors of Shiny Health & Wellness, subject to regulatory approvals.
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