Ontario's Cannabis Market Heats Up: Shiny Health Buys 10 Stash & Co. Weed Stores, Adding $7.5M To Top Line

Shiny Health & Wellness Corp. SNYB has signed an asset purchase agreement with Karan S. Holla for his Stash & Co. Ontario chain of 10 adult-use cannabis retail stores.

What Happened

The company’s previously announced letter of intent on Oct. 27 for Shiny Health to add 10 SC adult-use cannabis retail stores with forecasted 2023 revenues of approximately CA$10 million ($7.5 million) is now consummated by an APA signed on Dec. 14 with Holla.

The Stash & Co. brand, trademark and dispensaries will not be rebranded, remaining Stash and Co: an award-winning brand with stores across Ontario, including Toronto, Ottawa, London, Kitchener, Oshawa and Collingwood.

Shiny Health will add the Stash & Co. brand to its ShinyBud and BudGet Bud cannabis consumer program to reach nearly 100,000 loyalists.

See also: This Canadian Cannabis Company Releases Q2 2024 Financial Results And Partnership Closure

Why It Matters

Meris Kott, CEO of Shiny Health & Wellness praised the move.

“We are excited to add a strong, above-average revenue-producing cannabis dispensary group to our Ontario platform," Kott said. "Increasing our loyalist program and reaching more consumers is key to our success as we build our retail reach in Ontario and beyond to the USA and Europe."

What's Next

Shiny Health said it will continue its final due diligence and assignment of leases to complete the transaction based on a total consideration equal to CA$1 million, including CA$800,000 in cash and CA$200,000 in common shares in the capital of the company.

Upon approval of the transaction by the TSXV, Shiny Health will issue an initial tranche of 250,000 of its common shares at 10 cents per share for the value of CA$25,000.

Upon completion of the final due diligence and approval by the TSXV, the company will issue a second tranche of its common shares for the value of $25,000 to Holla.

The cash component of CA$800,000 plus the final tranche of the company's common shares valued at CA$150,000 will be tendered at the closing of the entire transaction.

SNYB Price Action

Shiny Health & Wellness' shares traded 6.6667% higher at $0.08 per share after the market close on Friday afternoon.

Now read: Shiny Health & Wellness FY23 Revenue Grows 43%, What About Profit?

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