Second Cup and National Access Cannabis (NAC) have established a strategic alliance to develop and operate a network of NAC-branded private cannabis stores.
NAC CEO, Mark Goliger, says, “The relationship allows us to quickly expand our footprint in proven high-traffic retail locations across Canada. With an initial focus on Western Canada, we’ll look to work with Second Cup to license select storefronts, utilizing our proven business model to deliver secure, safe, and responsible access.”
Garry Macdonald, President & CEO of Second Cup, notes, “This strategic relationship provides Second Cup with a great opportunity to leverage our select real estate assets to increase value for shareholders and franchisee partners.”
NAC-branded stores will be located across Western Canada, where private stores will be retailing cannabis. NAC has already been selected by Manitoba’s government as one of the organizations to handle retail sales of cannabis.
NAC will apply for the licenses and will work with Second Cup and applicable franchisees to construct stores carrying cannabis products.
In consideration of Second Cup agreeing to enter into this strategic alliance, NAC has issued to Second Cup warrants to purchase an aggregate of 5,000,000 common shares of the Company. The warrants have an exercise price of $0.91 per common share and expire on April 12, 2023. The issuance of the warrants remains subject to requisite regulatory approval, including the approval of the TSX Venture Exchange.