Item 9 Labs Corp. INLB has signed a definitive agreement to acquire Sessions Cannabis.
"This is a transformative acquisition that fast-tracks our entry into the Canadian market and brings tremendous value to our shareholders," stated Item 9 Labs Corp. CEO Andrew Bowden. "With an exponential increase in store count across North America, this acquisition would transition us from being a multi-state operator to an international cannabis company and the largest global cannabis franchisor. The potential to accelerate growth through both franchising and additional opportunistic acquisitions is immense. This is simply the first step to much deeper market penetration, both in Ontario and other provinces."
Founded in 2019, Sessions currently has 43 stores throughout the Province of Ontario, the majority of which are located in prime retail shopping centers, typically anchored by national tenants such as Costco, Walmart, well-known grocers, quick service restaurants and more. The Ontario-based business has a franchise system comprised of 18 franchisees, the majority of which are multi-unit owners, and plans to continue its growth across Canada with multiple openings already planned for this year.
"The Canadian cannabis market has grown tremendously over the past few years, and we have certainly felt that impact and benefited from first-mover advantage in several markets," stated Steven Fry, CEO and co-founder of Sessions, noting that Sessions' locations that have been open for more than a year see an average annual revenue of CA$2.46 million ($1.91 million). "We have amazing multi-unit franchisees and a solid franchise system that is dedicated to their success, but to further innovate within the industry and expand our reach, we need the right partner. We believe we have found that with Item 9 Labs Corp. and their franchise brand, Unity Rd."
Photo: Courtesy of Chris Liverani on Unsplash
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