Alcanna Inc. and YSS Corp. Announce Upsize of Previously Announced Equity Financing to $40 Million
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES/
EDMONTON, Alberta and CALGARY, Alberta, Jan. 19, 2021 (GLOBE NEWSWIRE) -- Alcanna Inc. ("Alcanna") (TSX: CLIQ) and YSS Corp. ("YSS") (TSX-V: YSS; WCN: A2PMAX; and OTCQB: YSSCF) are pleased to announce that, as a result of excess demand, the previously announced $25.0 million equity financing being led by Eight Capital and Cormark Securities Inc. has been upsized to $40.0 million (the "Financing"). The Financing will be completed in connection with a transaction pursuant to which Alcanna will spin-out its retail cannabis business and combine with YSS to form "Nova Cannabis Inc." ("New Nova" or the "Company"), a new discount-focused cannabis retailer (the "Transaction"). In all other respects, the terms of the Transaction and the Financing will remain as previously disclosed in the January 18, 2021, press release other than the Agents’ option to offer for sale up to an additional 25% of the subscription receipts has been relinquished.
Closing of the Financing is expected to occur on or about February 5, 2021. The completion of the Financing is subject to customary closing conditions and regulatory approvals, including of the TSX Venture Exchange (the "TSXV").
Following the closing of the Transaction and assuming completion of the Financing for $40.0 million, it is anticipated that Alcanna will hold approximately 63%, current YSS shareholders will hold approximately 13% and new subscribers under the Financing will hold approximately 24% of the shares of New Nova, respectively, calculated on a basic basis.
Alcanna is one of the largest private sector retailers of alcohol and cannabis in North America and the largest in Canada by number of stores – operating 238 locations in Alberta and British Columbia. Alcanna is incorporated under the laws of Canada, and its common shares and convertible subordinated debentures trade on the Toronto Stock Exchange under the symbols "CLIQ" and "CLIQ.DB", respectively. Additional information about Alcanna is available at www.sedar.com and www.alcanna.com.
Alcanna Cannabis Stores GP Inc. ("ACS GP") and Alcanna Cannabis Stores Limited Partnership ("ACS LP" and together with ACS GP, the "ACS Entities") were formed in 2018 to leverage Alcanna's retail experience and expertise to become an industry leader in the Canadian retail cannabis industry with a strategy to independently open and develop its stores to increase its presence in the recreational retail cannabis market. The ACS Entities are operated primarily from Alcanna's head office in Edmonton, Alberta. Alcanna opened 5 of the first 17 recreational retail cannabis locations in Alberta on October 17, 2018. By December 31, 2019, Alcanna had opened an additional 16 recreational retail cannabis stores in Alberta and 1 in Ontario. These stores range in size from 1,200 to 5,600 square feet. Alcanna now operates a total of 30 cannabis retail stores under the "Nova Cannabis" brand and 4 under the "Deep Discount Cannabis" brand, with 33 locations in Alberta and one in Ontario.