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Vancouver, British Columbia--(Newsfile Corp. - July 14, 2021) - Kiaro Holdings Corp. (TSXV: KO), a national omni-channel cannabis retailer and wholesale distributor, has entered into a definitive agreement with Aegis Brands Inc. to acquire all the issued and outstanding shares of its subsidiary, which operates as Hemisphere Cannabis Co. Hemisphere currently operates seven retail locations in Ontario with two more locations in development.
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Completion of the acquisition will more than double Kiaro's retail footprint and give it a significant presence in the Ontario retail cannabis market. The acquisition will cost Kiaro 61.3 million shares, along with 6.7 million warrants, subject to customary adjustments. Aegis could receive a further 6.7 million shares upon meeting certain milestones within the first year following closing.
Daniel Petrov, CEO, stated: "The acquisition of Hemisphere is simply transformational. I expect this transaction will be significantly accretive for shareholders as we push forward towards $50M in target revenue. It brings up to 18 stores into operation by the end of the fiscal year and cements a strategic partnership with retail industry titans at Aegis Brands. Their team has assembled a superior Ontario portfolio of well-positioned brick and mortar locations, supporting our objective of exponential revenue and EBITDA growth."
Steven Pelton, President and CEO of Aegis Brands, added: "The retail cannabis space is changing rapidly in Canada. We recognize the need for scale and focus to ensure success in this sector. As such we are thrilled to forge a partnership with Kiaro to build a cannabis retailer with a prominent nationwide presence and a clear path to $50 million in annual revenue. The strategic alignment between two likeminded Canadian brands will serve to elevate the customer experience, while bolstering growth and profitability in the combined company."
Jenn Juby, VP of retail operations at Hemisphere, will join the Kiaro team in the same capacity, where she will immediately contribute to the integration of the new stores into the company and will use her expertise to continue the implementation of Kiaro's retail experience.
From its base in Vancouver, British Columbia, Kiaro operates existing storefronts across British Columbia, Saskatchewan and Ontario, a wholesale distribution division servicing Saskatchewan, and ecommerce sites in Canada, the US and Australia. With more than 50 years of collective retail-focused experience, Kiaro's leadership team has a proven track record of growing retail brands across North America and plans to open multiple retail locations nationwide over the coming years.
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