CALGARY: Inner Spirit Holdings Ltd., a Canadian company that has established a national network of Spiritleaf retail cannabis stores, has secured a Retail Operator Licence for corporate-owned Spiritleaf retail cannabis stores and has met Ontario’s eligibility criteria for operating cannabis outlets in the province.

The license was granted by the Alcohol and Gaming Commission of Ontario (“AGCO”) as part of the regulator’s plan to increase the number of legal cannabis retail stores in the province. The next step in the approval process will be for the Spiritleaf corporate stores to secure Retail Store Authorizations (“RSAs”) prior to commencing operations.

“We are very pleased to receive an ROL for our corporate-owned stores and now await ROLs for our many Spiritleaf franchise partners in Ontario who have been training and preparing to launch their retail cannabis businesses and serve their local communities. We currently have more than 20 corporate and franchise stores expected to open in Ontario in 2020 depending on when ROLs are secured for the franchise partners and when RSAs are granted.

The Spiritleaf brand and its local ownership franchise model have proven to create a loyal customer following in the communities we serve. We plan to grow our footprint in Ontario using the same dedication and focus we’ve brought to our other markets across Canada,” said Darren Bondar, Founder and CEO of Inner Spirit.

Bondar also noted the Company is in the final stages of completing the transaction (the “Transaction”) to acquire the existing Kingston, Ontario Spiritleaf-branded store which has been operating under a retail agreement with an Ontario lottery winner and ROL holder since April 1, 2019. The store has generated more than $7.7 million in retail sales in its first twelve months of operations. It is now anticipated the Transaction will be completed on or about June 1, 2020.

The Spiritleaf retail cannabis store network includes 47 franchised, licensed and corporate-owned stores operating in British Columbia, Alberta, Saskatchewan and Ontario. The most recent opening was in Calgary (Kensington) on May 1 with a store in Kelowna, British Columbia also expected to open this month.

Franchised Spiritleaf retail cannabis stores are anticipated to be opened in Newfoundland and Labrador under the master agreement entered into with a subsidiary of Atlantic Cultivation Limited on April 1, with a first location slated to open in St. John’s in June. Additional locations are also expected to open in 2020 in British Columbia, Alberta and Saskatchewan.