Alcanna Changes Liquor Division Management and Reorganizes Corporate Structure by Purchasing the Canadian Liquor Retailers Alliance Interest From Ace Liquor

EDMONTON, Alberta, Jan. 22, 2020 (GLOBE NEWSWIRE) -- Alcanna Inc. (the “Company” or “Alcanna”) (TSX: CLIQ) today announced that it has promoted five individuals to oversee the Company’s liquor division. Taranvir (Tank) Vander is now President of Liquor responsible for the operations of all Alcanna liquor brands. Mr. Vander was previously CEO of the Canadian Liquor Retailers Alliance Limited Partnership (the “Alliance”) which owned Alcanna’s discount banners Ace, Solo and Deep Discount Liquor.  In addition, Karan Vander, Nab Dhaliwal and Jerry Dhaliwal have each been promoted to Vice President roles, responsible for operations, merchandising, and marketing & purchasing, respectively, for all Alcanna liquor brands; roles similar to their roles within the Alliance. Don Bobey has been named Chief Operating Officer of Liquor for all of Alcanna’s liquor brands – the same role he held with the Alliance.

To align Mr. Vander, Karan Vander, Nab Dhaliwal and Jerry Dhaliwals’ interests in the Alliance (held via their indirect ownership in Ace Liquor Corporation ("Ace")) with that of all Alcanna shareholders, Ace will exchange its units in the Alliance for 2,927,928 common shares in the capital of Alcanna (the “Shares”). The transaction has been valued at $13 million, with Alcanna issuing the Shares at a price of $4.44 per Share, which represents the five-day volume-weighted average price of trading of the Shares prior to January 22, 2020. Following the completion of this transaction, Alcanna will own, itself or through wholly owned subsidiaries, 100% of the Alliance and Ace will own approximately 7.3% of the Shares of Alcanna.

“This transaction is an indication of the confidence that Tank Vander and his team have in the Company and all the stores in all our markets and across all our brands. To exchange their units in the Alliance, a discount banner they know, into shares of Alcanna is testament to their belief in the tremendous opportunities for our company,” said James Burns, Alcanna’s Vice Chair and CEO.

Alcanna entered the discount liquor market in 2018 with its own banner, Deep Discount Liquor. On January 14, 2019, Ace joined the Alliance with the Alliance’s acquisition of 12 opened and 3 unopened stores from Ace in consideration for an approximately 29% partnership interest in the Alliance.  Alcanna had previously contributed 50 stores to the Alliance. The purpose of the formation of the Alliance and the acquisition of the Ace stores was to develop and grow a discount liquor business in the Province of Alberta.