Progress Towards Building A Strong Canadian Brand
TORONTO, Dec. 15, 2023 – Shiny Health & Wellness Corp. (the “Company” “SNYB”) (TSXV: SNYB) signs Asset Purchase Agreement (“APA”) with Karan S. Holla for his Stash & Co. (‘SC”) Ontario chain of 10 adult-use cannabis retail stores.
“We are excited to add a strong, above-average revenue producing cannabis dispensary group to our Ontario platform. 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 USA and Europe. Karan was granted one of the very first retail cannabis licenses and we are extremely fortunate to be working side by side with him during this transition. I have met wonderful mentors the last few months advising us on the Ontario marketplace and their value-add cannot be measured just yet but I hope that the best is yet to come for our shareholders and supporters,” said Meris Kott, CEO, Shiny Health & Wellness Corp.
The Company’s previously announced letter of intent on October 27, 2023 for SNYB to add 10 SC adult use cannabis retail stores with forecasted 2023 revenues of approximately CAD$10,000,000 is now consummated by an APA signed on December 14, 2023 with Mr. Holla. The Stash & Co. brand and trademark and the dispensaries will not be rebranded and remain Stash and Co. SC is an award-winning brand with stores across Ontario, including Toronto, Ottawa, London, Kitchener, Oshawa and Collingwood, as well as being one of the original cannabis stores in Canada with one of the most experienced staff in the cannabis industry. The Company will add the Stash & Co. brand to its ShinyBud and BudGet Bud cannabis consumer program to reach near 100,000 loyalists.
The Company will continue its final due diligence and assignment of leases to complete the transaction based on a total consideration equal to $1,000,000; CAD$800,000 in cash and CAD$200,000 in common shares in the capital of SNYB. Upon approval by the TSXV of the transaction, Shiny Health & Wellness will issue an initial tranche of 250,000 common SNYB shares at .10 per share for the value of $25,000; upon completion of the final due diligence and approval by the TSXV, SNYB will issue a second tranche of common SNYB shares for the value of $25,000 to Mr. Holla; the price per share of the second tranche will be determined by the share price at that time. The cash component of $800,000 plus the final tranche of SNYB common shares valued at $150,000 will be tendered at the closing of the entire transaction. The purchase transaction is subject to customary AGCO approvals as well as current landlord assignments of the current store leases. The value of inventory remaining in the SC stores as of the closing date, shall be an aggregate amount equal to $300,000, based on wholesale prices paid by the vendor to the Ontario Cannabis Store. Karan S. Holla will have the option to have a directorship on the board of directors of SNYB., subject to standard regulatory approvals.