Westleaf has entered into a definitive arrangement agreement to combine with We Grow BC. "We Grow brings an ultra-premium cannabis brand, Qwest which achieves some of the highest realized pricing in the Canadian adult-use markets," the team with the company explains. "The combination of We Grow's Qwest brand with Westleaf's high quality production and retail assets, creates a combined company which is expected to be one of Canada's preeminent craft-at-scale cultivators, manufacturers, and retailers of ultra-premium cannabis products."
"This transaction brings together a known brand with revenue and EBITDA to complement some of Canada's most premier indoor cultivation and extraction facilities. Together, we will be able to aggressively expand a trusted brand, increase market share, drive revenue and EBITDA growth and become an extremely competitive company in Canada and beyond" said Scott Hurd, President and Chief Executive Officer of Westleaf.
"Westleaf has built world class cultivation, extraction and retail assets that will allow us to scale quickly and address the existing demand for our Qwest branded products. Together, we create the preeminent ultra-premium cannabis brand in Canada" said Benjamin Sze, Chief Executive Officer of We Grow.
"The Arrangement is expected to elevate the combined entity's forecasted 2020 cannabis production capacity to 9,100 kgs of dried cannabis flower while enabling the Company to fully leverage the Qwest ultra-premium brand through Westleaf's extraction facility and Westleaf's chain of award-winning Prairie Records retail stores," they further explain.
Combined Westleaf-We Grow Pro-Forma Facility and Assets
- Creston Valley Cultivation (We Grow): We Grow has a purpose-built indoor cultivation facility currently consisting of 26,000 square feet which has been retrofitted for phase 1 cultivation including over 14,000 square feet of growing rooms, and up to 100-acre cultivation abilities for future production. We Grow is currently constructing a genetics and tissue culture lab in the existing facility.
- Thunderchild Cultivation (Westleaf): Construction of Westleaf's purpose-built, GMP compliant, indoor cultivation facility near Battleford, Saskatchewan has progressed significantly in the third quarter and is nearing completion, according to them. "Phase I of the indoor grow operation will be a total of 80,000 square feet with 20 grow rooms and approximately 21,000 square feet of flower bench. Phase II will add an additional 50,000 square feet of production space" they further explain. "The name of the facility reflects the company's first and largest investor, the Thunderchild First Nation, an independent Cree nation based in Turtleford, Saskatchewan."
- The Plant by Westleaf Labs (Westleaf): A scalable extraction, processing, and product manufacturing facility located in Calgary, Alberta is a strategic asset for the Company. "With the legalization of derivative products, Westleaf anticipates strong industry wide demand for efficient extraction, processing and formulation capacity and recently announced receipt of its first white label order. The Plant is currently a 16,000 square foot licensed production facility with scalable capacity of up to 65,000 kgs of dried flower per annum. The Plant has an additional 45,000 square feet of expansion space."
- Prairie Records (Westleaf): "The Company's experiential retail concept Prairie Records, which combines music and cannabis into a unique retail environment, launched with three stores in the Saskatoon region and one in Calgary. Westleaf maintains a portfolio of over 20 premium retail locations with development permits."