According to the update, the company is successfully executing on its growth strategy and has achieved over C$40 million in retail sales since legalization, with cumulative gross margin in excess of 31%.
The company is targeting to have 40 operating stores by the end of calendar 2019.
“NAC continues to demonstrate revenue momentum in a supply constrained environment,” NAC CEO Mark Goliger stated.
“Investors want to know what’s next for NAC. We plan to open more stores in Alberta and Manitoba, expect positive movement with our license applications in British Columbia, and plan to roll out an improved and streamlined store design to enhance customer experience and optimize capex. With the recent filing of our preliminary base shelf prospectus to provide us with flexible access to capital, we are confident in our ability to execute on our strategic growth initiatives, and that our revenue momentum will continue for the foreseeable future,” Goliger noted.
The company currently has 28 licensed locations including 18 NewLeaf Cannabis stores in Alberta, nine Meta Cannabis Supply Co. stores in Manitoba, and one Meta Cannabis Supply Co. store in Saskatchewan.
NAC’s near-term growth initiatives include: opening an additional 5 META store locations in Manitoba by the end of the fourth quarter of 2019; opening its seven fully-built stores in Alberta as the Alberta Gaming, Liquor and Cannabis Commission grants additional retail licenses as per its recently lifted moratorium; obtaining licenses in British Columbia where the company has already submitted applications for 7 licenses; submitting applications for licenses in Ontario once licensing opens up to more private retailers.
NAC is Canada’s largest recreational cannabis retailer by provincial store count. With a portfolio of 28 retail locations nationwide, NAC is the big player in the legal recreational cannabis market in Canada.