Westleaf Provides Retail Update and Next Store Developments
Prairie Records stores coming to downtown Calgary, Edmonton's University District and Banff National Park
CALGARY, Oct. 28, 2019 /CNW/ - Westleaf Inc. (the "Company" or "Westleaf") (TSX-V:WL) (OTCQB:WSLFF) is pleased to announce development of its proposed next three key Alberta retail locations for its award-winning retail concept Prairie Records which include a location in the historic Palace Theatre on Calgary's Stephen Avenue, one directly beside the University of Alberta main campus in Edmonton and the Company's flagship store in the heart of Banff, Alberta, one of Canada's most visited tourist destinations (collectively, the "Retail Locations"). Opening of the Retail Locations is subject to final retail cannabis licence approval by Alberta Gaming, Liquor and Cannabis ("AGLC").
"We have always maintained our Prairie Records retail brand would be a premium cannabis retail experience, and these three locations are premium retail locations," said Scott Hurd, President and CEO of Westleaf. "These three stores check off all the boxes of our retail concept, high foot traffic locations in urban settings and resort destinations, as well as being in Alberta, which continues to lead the country in legal cannabis retail."
The Company's Prairie Records branded cannabis stores combine the inherent connection between music and cannabis in a highly immersive retail experience. The Prairie Records stores were recently awarded top Canadian cannabis retailer at the Grow UP Conference and Expo. The retail stores are an integral part of Westleaf's vertically integrated strategy providing the Company a valuable portal to the consumer as well as an outlet for its own branded products which are expected to come to market in the coming months.
Further details on the Retail Locations now in development follow:
- Palace Theatre: Situated at the centre of Stephen Avenue (219 8th Avenue SW) in downtown Calgary, this store will be part of the historic Palace Theatre which opened its doors in 1921. Now a busy music venue at the heart of a pedestrian mall which hosts up to 30,000 pedestrians on a busy day. The Palace Theatre Prairie Records store is expected to be only one of two cannabis stores on the busy four block pedestrian stretch of Stephen Avenue;
- University of Alberta: The first Prairie Records in the provincial capital will be directly beside the University of Alberta main campus (8623 112 St. NW) in the trendy Garneau district. The U of A has a student population of close to 40,000 in addition to the many permanent residents in the area;
- Banff National Park: The Banff Prairie Records location is expected in the historic King Edward Hotel (137 Banff Avenue), adjacent to the busiest street corner in the town. Banff is one of Canada's most visited tourist locations and attracts around 4 million visitors from around the world each year.
"These three stores, combined with the four Prairie Records stores currently open, three in the Saskatoon region and one in Calgary, will enhance our retail footprint," noted Adam Coates, Westleaf's Chief Commercial Officer. "But given these prominent and premium locations, we anticipated that they will have an exceptional impact on our brand and our Company."
Certain of Westleaf's current Prairie Records stores continue to record margins that put them amongst the industry leaders since opening. The Saskatoon Broadway and Saskatoon Stonebridge Prairie Records locations have recorded gross sales over the last 30 days of $249,945 and $283,351 respectively, and profits over that same period of $93,400 for Broadway and $106,633 for Stonebridge respectively, or a 37.5% combined gross margin.
The cannabis retail landscape in Canada continues to improve month over month with StatsCan reporting that in the month of August retail sales totaled $127.3 million across Canada and 18.6% month over month increase. The retail environment in Alberta continues to lead the country, with now more than 300 retail stores licenced and August sales for the province totaling $24.8 million, a 16.3% month over month increase. With its open retail market, Alberta has accounted for more sales than any other province in the country since legalization, edging out Ontario which has three and half times the population but only a fraction of the stores open. In the first 11 months of sales, there has been a total of $807 million sold in legal retail and online stores across Canada.
About Westleaf Inc.
Westleaf is a Canadian cannabis company focused on cannabis brands, extraction and production of derivatives, wholly owned retail, as well as cannabis cultivation. The Company's Health Canada licensed extraction and processing facility, The Plant, is expected to produce high quality and consistent cannabis derivatives and consumables, both for Westleaf's in-house brands as well as white label products. Westleaf's retail concept, Prairie Records, leverages the instinctual tie between recreational cannabis and music with stores operating or in development across Western Canada. The Company's Thunderchild cultivation facility is scheduled for completion at the end of this year.
Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release
Cautionary Statements
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, (i) retail cannabis stores that Westleaf plans to open, including the Retail Locations; (ii) the construction of Westleaf's production facilities and the timing for completion of same; (iii) commencement of production at Westleaf's production facilities; (iv) commencement of operations at the Plant, its capacity to manufacture and extract cannabis derivative products and corresponding scalability, its ability to provide a competitive advantage by being adaptive to consumer needs and material revenue that may be derived from its operations; (v) products and brands to be produced from Westleaf's production facilities and the products and services that Westleaf plans to offer; (iv) timing of provincial and federal regulatory approvals, including AGLC approval for the Retail Locations; (vii) timing of legalization of certain derivative products and the anticipated benefits and impact on Westleaf; (viii) changes in cannabis consumption habits among Canadians; and (ix) the processing and production capabilities of Westleaf's extracting and cultivation facilities. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to the ability to obtain or maintain licenses to retail cannabis products, including final approval for the Retail Locations; review of Westleaf's production facilities by Health Canada and receipt of licenses from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis, including the passing of regulations regarding derivative cannabis products; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; the ability of Westleaf's production facilities to operate and perform at peak production; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under Westleaf's credit facilities; timing and completion of construction of Westleaf's production facilities and retail locations; and the delay or failure to receive board, ATB Financial or regulatory approvals, including any approvals of the TSX Venture Exchange, as applicable. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, Westleaf assume no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
SOURCE Westleaf Inc.
Bruce Leslie, VP Corporate Communications, [email protected], 403-801-7612
Share this article