TORONTO — Second Cup wants to convert some of its coffee shops into cannabis dispensaries.
The Canadian retailer says it signed a strategic alliance with marijuana clinic operator National Access Cannabis to develop and operate a network of recreational pot stores.
The companies say the NAC-branded stores will initially be located across Western Canada, expanding to include additional provinces where legally permissible.
NAC will apply for licenses to dispense cannabis products and, upon receipt, work with Second Cup and applicable franchisees to construct retail stores carrying cannabis products.
Conversion of any Second Cup cafes to dispensaries will be conditional on obtaining a retail license from provincial regulators as well as the and the approval of and the applicable franchisee and landlord.
As well, NAC has issued to Second Cup warrants to purchase an aggregate of 5,000,000 common shares of the company, at an exercise price of 91 cents per common share that expire in April 2023.
Companies in this story: (TSX:SCU, TSXV:NAC)
The Canadian Press