CALGARY, Alberta, March 12, 2019 (GLOBE NEWSWIRE) -- Solo Growth Corp.™ (the “Company” or “Solo Growth”) (TSXV: SOLO) is pleased to provide an operational update and announce the implementation of several corporate strategies aimed at enhancing long-term value for its shareholders. Highlights include:
The Company is pleased to announce that AGLC inspections have been completed on its first three fully-constructed and completed stores in Lloydminster, Vermilion and Vegreville, Alberta. With inspections completed, the Company is prepared and excited to open these stores immediately upon granting of an AGLC license, which remains at the discretion of AGLC subject to the prevailing supply constraints in Canada.
An additional four stores, located in Calgary, Edmonton, Spruce Grove and Stony Plain are near completion and are expected to be ready for inspection in the coming weeks. The Company will provide further updates once AGLC inspections for those locations have been completed.
Management Team Evolution
The Company is very pleased to announce that Mr. Theo Zunich has been promoted to President and Chief Executive Officer of the Company, effective immediately, and has been appointed to its Board of Directors. Mr. Zunich has been directly involved with the Company since inception, first in an advisory capacity with Eight Capital, of which he was a founding Principal working in the Investment Banking group, and since August 1, 2018 as VP Corporate Development at the Company. Mr. Zunich has over ten years of investment banking experience and has been involved in numerous transformational transactions concentrating on the cannabis, energy and technology sectors. Since joining the Company, Theo’s vision and knowledge of the cannabis industry has been instrumental to the progress and development of the organization.
Concurrent with Mr. Zunich’s appointment, the Company also announces the departure of Mr. Pali Bedi from the Company and the Board of Directors to allow him to focus on other initiatives, including his privately-owned liquor business.
“On behalf of my fellow board members, I am very pleased to welcome Theo to his new role and to the Board, particularly at this crucial phase of the Company’s evolution whereby we have expanded our focus from a solely organic growth model to one that also encompasses acquisitions and other potential innovative structures that contribute to our vision,” said James Miller, Chairman of the Board. “Theo’s strong capital markets, finance and corporate structuring experience are critical attributes as the Company pivots and the Board looks to his leadership through the Company’s continued evolution.”
Focus on Strategic Execution
In response to regulatory changes that have occurred across the industry, management has increased focus on strategic opportunities within the cannabis sector that will drive shareholder value. Such opportunities could include accretive strategic acquisitions, partnerships and/or other ventures designed to supplement the Company’s organic growth profile. With a strong balance sheet, extensive relationship network and aligned management team, the Company is well positioned to withstand short-term challenges and capitalize on opportunities that may arise within the current landscape.
“The first five months of the legalized cannabis market has been extremely encouraging from a consumer demand perspective but has also been largely overshadowed by market volatility and regulatory challenges,” said Mr. Theo Zunich. “Our strong team, supported by our board, are more excited than ever at the prospects this nascent industry offers for Canadian consumers as well as our shareholders, and we look forward to continuing to execute on strategic and organic growth opportunities that underpin the Company’s drive to deliver compelling value for shareholders.”
The Company also announces its intention to change its name to YSS Corp. (the “Name Change”) to better align with the Company’s retail brand which will also evolve to YSSTM. The Company’s shareholders will be asked to approve a special resolution to change the name at the Company’s next Annual and Special Meeting of Shareholders (the “Meeting”), expected to be held in the second quarter of 2019.
Subject to shareholder and regulatory approval, the name change will take effect immediately following the Meeting. In concert with the Name Change, the Company expects to change its trading symbol on the TSX Venture Exchange to “YSS”. The Name Change and new trading symbol are subject to approval of the TSX Venture Exchange.
Over the last few months the Company has added critical administrative, accounting and human resources personnel to the team. As a result, the Company has terminated the services agreement with Solo Liquor Stores Ltd. and has moved its corporate headquarters. These changes provide approximately $200,000 in annualized cost savings.
The Company has an estimated working capital position of $18.5 million. In keeping with a strict focus on cost control, while also advancing the necessary infrastructure to navigate the current operating environment, the Company intends to continue building out the team from an operational point of view, which may include the addition of an individual with strong retail operational experience. As milestones continue to be met and operational progress is made, market updates will be provided.
About Solo Growth Corp.TM
Operating as YSSTM, the Company is a cannabis retailer with the vision to become a premier retailer and the trusted destination for cannabis in Canada. Since its launch in June of 2018, the Company has built a strategic portfolio of locations while managing financial commitments and has completed construction and AGLC inspections of three Alberta stores, with four more in the province nearing completion. YSS management brings excellence across capital markets, financial management and a strong commitment to deliver shareholder value by leveraging high-quality opportunities within this exciting new industry. The YSS retail experience is built on our five fundamental pillars: convenience, value, selection, team, and above all else, trust.
Investor or Media Contacts:
President, Chief Executive Officer
Phone: (403) 455-7656
Solo Growth Corp.™
Suite 1000, 350-7th Ave SW
Calgary, AB T2P 3N9
5 Quarters Investor Relations, Inc.
(403) 231-4372 or firstname.lastname@example.org
|Stephanie Bunch, CA|
Vice President, Finance and
Chief Financial Officer
Phone: (403) 455-7656
Forward-Looking and Cautionary Statements
This news release may include forward-looking statements including opinions, assumptions, estimates, the Company’s assessment of future plans and operations, and, more particularly, statements concerning: Solo Growth’s retail cannabis business strategy, including organic growth, acquisitions and other strategic activities; the ability to build, own and operate retail cannabis stores; the receipt of necessary permits and licenses to open stores; ability to find qualified personnel with operational experience and the performance of existing personnel; the ability to capitalize on potential opportunities that may arise and the ability to exercise thereon; the Meeting; the timing and approval of the new name and new symbol; and enhancing long-term value for shareholders. When used in this document, the words “will,” “anticipate,” “believe,” “estimate,” “expect,” “intent,” “may,” “project,” “should,” and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by the Company. Forward-looking statements are subject to a wide range of risks and uncertainties and, although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to: regulatory and third party approvals not being obtained in the manner or timing anticipated, including AGLC inspections and licenses; the ability to implement corporate strategies; the state of domestic capital markets; the ability to obtain financing; changes in general market conditions; industry conditions and events; the size of the recreational cannabis market; the availability of cannabis-retail products from licensed producers; government regulations, including future legislative and regulatory developments involving recreational cannabis; competition from other industry participants; and other factors more fully described from time to time in the reports and filings made by the Company with securities regulatory authorities. Please refer to the Company’s annual information form (“AIF”) for the financial year ended January 31, 2018 and management’s discussion and analysis (“MD&A”) for the three and nine months ended October 31, 2018 for additional risk factors relating to the Company. The AIF and MD&A can be accessed under the Company’s profile on www.sedar.com.
Except as required by applicable laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statements.
Neither the TSXV nor its regulation services provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.