CALGARY, Alberta, May 23, 2019 (GLOBE NEWSWIRE) -- Solo Growth Corp.™ (the “Company” or “Solo Growth”) (TSXV: SOLO) (WKN:A2PBMC), a cannabis retailer operating as YSSTM with the vision to become a premier retailer and the trusted destination for cannabis in Canada, is pleased to announce an operational update along with the financial and operating results for the three months ended March 31, 2019. Selected financial and operational information is outlined below and should be read in conjunction with Solo Growth’s condensed interim consolidated financial statements for the three months ended March 31, 2019 and related management’s discussion and analysis (“MD&A”) which are available on SEDAR at www.sedar.com.
On March 20, 2019, Solo Growth closed the acquisition of a licensing agreement for an established operating retail cannabis store in Red Deer, Alberta (the “Red Deer Acquisition”) currently operating under the brand Greentown (the “Red Deer Store”). Readers are reminded that the Company’s Q1 2019 results reflect only nine days of operations from the Red Deer Store during the quarter. The Red Deer Store will be rebranded and commence serving customers under the YSS banner in the third quarter of 2019.
Operational Update
“We are extremely pleased to have our first operating location in Alberta, which continues to steadily generate positive revenue and cash flow for Solo Growth,” said Theo Zunich, CEO of the Company. “With encouraging signs of improved supply from AGLC, Licensed Producers and Health Canada and our growing portfolio of ready-to-open stores, we are very excited about the future outlook for YSS across Alberta and other provinces as the Canadian retail cannabis industry continues to evolve.”
Q1 2019 Financial Highlights
Annual Meeting of Shareholders: May 29, 2019
Additional Information
For additional information regarding Solo Growth please see the corporate website at www.sologrowth.ca and filings available under the Company’s profile on SEDAR at www.sedar.com.
About Solo Growth Corp.
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. The Company has a licensing agreement on one operating store in Red Deer, Alberta; has built and received AGLC inspections on six additional Alberta stores, and has another location in Edmonton, Alberta nearing completion of construction. An additional 15 AGLC applications are being reviewed for construction priority within the current regulatory environment. 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:
Theo Zunich President, Chief Executive Officer and Director Phone: (403) 455-7656 Solo Growth Corp.™ Suite 1000, 350-7th Ave SW Calgary, AB T2P 3N9 investor@sologrowth.ca OR Cindy Gray 5 Quarters Investor Relations, Inc. (403) 231-4372 or info@5qir.com | 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 and strategic activities; the Red Deer Acquisition; the proposed rebranding of the Red Deer Store; the ability to build, own and operate retail cannabis stores; the receipt of necessary permits and licenses to open stores; the ability to capitalize on potential opportunities that may arise and the ability to exercise thereon; expectations regarding investments in technology and staff training; the annual meeting of shareholders; and enhancing 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; changing customer habits; 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 and management’s discussion and analysis for the year ended December 31, 2018 and MD&A for additional risk factors relating to the Company, which 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.
This news release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about: (i) the Company’s, investments, balance sheet, expenses, profit, revenue and cash flow; and (ii) sales and store level adjusted cash flow in respect of the Red Deer Store, which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this document was made as of the date of this document and was provided for the purpose of providing further information about Solo Growth’s future business operations. Solo Growth disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein.
Store level adjusted cash flow is not prescribed by International Financial Reporting Standards (“IFRS”). The Company uses this measure to help evaluate the financial and operating performance of the Red Deer Store. This non-IFRS financial measure does not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. “Store level adjusted cash flow on annualized basis” is calculated as annualized gross margin less expected continuing expenses of the business such as rent, wages, utilities, IT related charges, repairs & maintenance, bank charges, store supplies and general office expenses, but before interest, depreciation, amortization or taxes.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.