Item 9 Labs Corp. Signs Definitive Agreement to Acquire Sessions Cannabis, One of Canada’s Largest Cannabis Retail Franchisors
- Transformative Acquisition Creates World’s Largest Publicly Listed Cannabis Franchise Company
- Sessions Cannabis generates approximately $70 million CAD in annual system-wide sales with 43 stores currently open
PHOENIX , May 25, 2022 /PRNewswire/ — Item 9 Labs Corp. (OTCQX: INLB) (the “Company”) — a vertically integrated cannabis dispensary franchisor and operator that produces premium, award-winning products — announced today that it has signed a definitive agreement to acquire Sessions Cannabis (” Sessions”), one of from Canada largest cannabis retail franchisors.
“This is a transformative acquisition that accelerates our entry into the Canadian market and brings significant value to our shareholders,” said the CEO of Item 9 Labs Corp. Andrew Bowden. “With an exponential increase in the number of stores across North America, this acquisition would move us from a multi-state operator to an international cannabis company and the world’s largest cannabis franchisor. The potential for accelerating growth through both franchising and other opportunistic acquisitions is immense. It is simply the first step towards a much deeper penetration of the market, both in Ontario and other provinces. »
Founded in 2019, Sessions currently has 43 stores across the province of Ontario, the majority of which are located in prime malls, typically anchored by national tenants such as Costco, Walmart, well-known grocers, quick service restaurants and more. The OntarioThe company has a franchise system comprised of 18 franchisees, the majority of whom are multi-unit owners, and plans to continue growing through Canada with multiple openings already planned for this year. Sessions also anticipates that he will continue his strong and consistent performance.
Item 9 Labs Corp. acquired ONE Cannabis Group (“OCG Inc.”) in March 2021, the parent company of the U.S. cannabis dispensary franchise, Unity Rd. – making the Company the nation’s first vertically integrated cannabis dispensary franchisor. The combination of the Unity Rd. franchise system — which currently has more than 20 partners developing more than three dozen stores in more than 10 U.S. states — with Sessions makes Item 9 Labs Corp. the largest publicly traded cannabis franchise company in the world.
Canadathe world’s second-largest cannabis market, reported C$3.9 billion in cannabis sales in 2021, a 50% year-over-year growth, according to federal data agency Statistics Canada. Ontario is the largest cannabis market in the country with CA$1.47 billion in sales in 2021. According to BDSA, the Canadian market is expected to grow to CA$4.7 billion in 2022 and close to CA$6.3 billion Canadians by 2026.
“The Canadian cannabis market has grown significantly over the past few years, and we have certainly felt that impact and enjoyed first-mover advantage in multiple markets,” said Steven Fry, CEO and co-founder of Sessions, noting that Sessions locations that have been open for more than a year have an average annual revenue of C$2.46 million. “We have amazing multi-unit franchisees and a strong franchise system that is dedicated to their success, but to further innovate the industry and expand our reach, we need the right partner. We believe we’ve found that with Item 9 Labs Corp. and their franchise brand, Unity Rd.”
The director of franchises of the company Michael Weinberger agrees with Fry that it’s the perfect synergy. He added, “From the brand values and education-focused approach with customers to the rock-solid franchise program that Steven and his team have put in place, there are many similarities between Sessions and our brand of Unity Rd franchise. This is a huge opportunity for Item 9 Labs Corp. and further solidifies our brand as a cannabis franchise leader. »
The Company’s merger and acquisition activity for calendar year 2022 has rapidly intensified. Item 9 Labs Corp. acquired a dispensary license and storefront at North of Denver, Colorado and recently signed an asset purchase agreement (“APA”) for a medicinal and recreational dispensary and grower, The Herbal Cure, also located in denver. Colorado is one of the main markets where Item 9 Labs Corp. actively seeking cannabis dispensary acquisitions.
“We are committed to accelerating our growth and opening the doors for more potential entrepreneurs to enter the complex cannabis space, and this is reflected in our merger and acquisition activity,” said the vice president. mergers and acquisitions of the company, Mark Busch. “Acquire one of from Canada largest cannabis retailers is an important milestone for our team and demonstrates our ability to close major deals. »
The closing of this acquisition is subject to customary closing conditions, details of which can be found in the 8k deposit on May 24, 2022.
Invest in Item 9 Labs Corp. at keepcannabislocal.com. For more information about the company and its brands, visit item9labscorp.com.
For potential merger and acquisition opportunities, contact Mark Busch at [email protected].
About Item 9 Labs Corp.
Item 9 Labs Corp. (OTCQX: INLB) is a vertically integrated cannabis operator and dispensary franchisor that offers premium products from its large-scale cultivation and production facilities in the United States. Award-winning brand Item 9 Labs specializes in the best products and user experience across multiple cannabis categories. The company also offers a unique dispensary franchise model through the nationwide Unity Rd. retail brand. By lowering barriers to entry, franchising provides an opportunity for new and existing dispensary owners to leverage the knowledge, resources, and ongoing support needed to thrive in their state compliantly and successfully. Item 9 Labs brings industry best practices to markets nationwide through a distinctive retail experience, culture capabilities and product innovation. The seasoned management team combines a diverse skill set with deep experience in the cannabis industry, franchising and capital markets to lead a new generation of public cannabis companies that deliver transparency, consistency and well-being. Based in Arizona, the company is currently expanding its operating space to more than 640,000 square feet on its 50-acre site, one of the largest properties in Arizona zoned for growing and growing flowers. For more information, visit Investors.item9labscorp.com/.
About Cannabis Sessions
Sessions Cannabis is a community-driven retailer that sells safe, Health Canada-regulated cannabis. Sessions are one of from Ontario first brick-and-mortar cannabis retailers with multiple locations in Ontario. The company’s mission is to bring people together by providing an inviting, comfortable and educational retail experience. More information can be found at www.sessions.ca.
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, including, but not limited to, the risks and effects of judicial and administrative proceedings and governmental proceedings. regulation, particularly in a foreign country, future financial and operating results, competition, general economic conditions, proposed transactions that are not legally binding on the company and the ability to manage and pursue growth. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this press release include the introduction of new technologies, market conditions and those set forth in any reports or documents we file from time to time. another with the SEC. We undertake no obligation to revise or update these statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unforeseen events.
Section 9 Labs Corp.
Jayne Levyvice president of communications
Section 9 Labs Corp.
SOURCE Element 9 Labs Corp.