The price of recreational cannabis operations appears to be falling as of late. Meta Growth (TSXV: META) announced this morning that it has executed definitive agreements to acquire two additional recreational stores in the province of Ontario, one of which was previously branded as a Meta store.
The two stores are located in Waterloo and Kitchener, with the latter already having been under the Meta banner. The Waterloo location was acquired for just $1.15 million, with the company being quick to clarify that approximately one quarter, or $300,000, of that price tag was attributable to inventory that ws already on hand. The location was previously under the Bud & Sally banner, and generated weekly revenue of $131,965 for the week ended July 11, 2020.
The Kitchener location was valued only slightly higher, with total compensation for the location coming in at $1.4 million, of which $0.16 million was attributable to inventory. However, a cash payment of $0.15 million is the only initial up-front payment being provided for the location, with $1.25 million currently sitting on the books as related party debt. The location generated $139,332 in weekly sales for the week ended July 11, 2020.
Meta also announced this morning that it will be delaying its third quarter filings under the current exemption offered due to the ongoing pandemic. The third quarter ressults are not expected to be filed by September 11, 2020, which follows the postponement of the firms second quarter financials.
Meta Growth last traded at $0.12 on the TSX Venture.
Information for this briefing was found via Sedar and Meta Growth. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
