Meta Growth Closes Acquisition of Kitchener Cannabis Store

Meta Growth Corp. (TSXV: META) (“Meta Growth”, “META” or the “Company”), a leading Canadian recreational cannabis retailer, today announced the closure of the previously announced acquisition of the Meta Cannabis Co. branded recreational cannabis store in Kitchener, Ontario.

META announced, on January 9, 2020, that it entered into an agreement with one of the winners of the Ontario cannabis retail store lottery to act as a consulting partner and service provider related to a cannabis retail location in Kitchener, Ontario. The Kitchener store opened on February 28, 2020, and achieved $186,124 in weekly revenue for the week ended September 19, 2020, with a 36.11% gross margin. The acquisition was structured as an asset purchase agreement, with consideration comprised of $150,000 in cash and the assumption of related party debt as at the date of close.

With the completion of the Kitchener acquisition, META currently has 2 operating stores in Ontario, and has submitted 10 Retail Store Authorization applications with the Alcohol and Gaming Commission of Ontario.

As previously announced on August 21, 2020, META and High Tide Inc. (“High Tide”) entered into a definitive arrangement agreement pursuant to which High Tide will acquire all of the issued and outstanding shares of META (the “Plan of Arrangement”). The combined entity following completion of the Plan of Arrangement (the “Combined Entity”) is expected to be the largest Canadian cannabis retailer, by revenue, in addition to ranking #1 in Ontario based on corporate owned store count¹. High Tide currently has 7 Canna Cabana branded stores in Ontario.