Canadian cannabis retailer Delta 9 Cannabis has announced an asset purchase agreement with 10552763 Canada to acquire its three cannabis retail stores in Manitoba, Canada.
Two of the Garden Variety-branded stores are in Winnipeg, with the remaining store located in Brandon.
Delta 9 Cannabis will acquire the stores for a total purchase price of C$3.25m ($2.52m).
Of this, C$2.925m will be paid through the issuance of common shares in the capital stock of the company.
The acquisition is likely to close on 29 August subject to approval from the Toronto Stock Exchange (TSX).
Over the last two years, the Garden Variety stores have seen growth in revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) among other parameters.
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Once the deal is closed, the Garden Variety cannabis stores and Delta 9’s existing network of stores are expected to make the company a key retailer of cannabis products in Manitoba.
Delta 9 CEO John Arbuthnot said: “We are pleased to announce another strategic retail acquisition to grow our market share across the Canadian prairies.
“On closing of this transaction, Delta 9 will operate 38 stores, positioning us as one of Canada’s largest vertically integrated cannabis retailers.”
A vertically integrated cannabis company, Delta 9 Cannabis sells cannabis products through its wholesale and retail sales channels and cannabis grow pods to other businesses.
The company owns and operates a network of retail stores under the Delta 9 Cannabis Store brand.
Its Delta 9 Bio-Tech subsidiary is a certified producer of medical and recreational cannabis.
Garden Variety aims to offer ‘anything but ordinary’ customer service to the cannabis industry and retail experience while offering new products at an affordable price.
The company is a partnership of the Fisher River Cree Nation, Chippewas of the Thames First Nation, Avana Canada, MediPharm Labs and Native Roots Dispensary.