Inner Spirit Holdings Announces Expansion of Spiritleaf Retail Cannabis Store Network into Newfoundland and Labrador

April 1, 2020

Inner Spirit Holdings Announces Expansion of Spiritleaf Retail Cannabis Store Network into Newfoundland and Labrador

Company signs Master Agreement with Atlantic Cultivation to operate retail stores in Newfoundland and Labrador 

CALGARY, Alberta (April 1, 2020) – Inner Spirit Holdings Ltd. (“Inner Spirit” or the “Company”) (CSE:ISH), a Canadian company establishing a national network of retail cannabis stores under its Spiritleaf brand, today announced it has signed a master agreement with a wholly owned subsidiary (the “Atlantic Subsidiary”) of Atlantic Cultivation Limited (“Atlantic Cultivation”) for the operation of franchised Spiritleaf branded retail cannabis stores in Newfoundland and Labrador. Atlantic Cultivation is currently building a cannabis production facility in St. John’s, Newfoundland. Pursuant to a supply, development and retail agreement previously entered into with the Government of Newfoundland and Labrador and strategic partner Auxly Cannabis Group Inc. (“Auxly”), Atlantic Cultivation is eligible to apply to be granted five retail licenses to operate retail cannabis store locations in the province.

“The agreement enables Inner Spirit to add a new operating territory and open a new market for the Spiritleaf brand. We are very pleased to sign the master agreement with the Atlantic Subsidiary and to bring Atlantic Cultivation into the Spiritleaf family. Our long-time strategic partner Auxly played a lead role in guiding this partnership and will remain involved as a supplier to the Province of Newfoundland and as a key strategic supplier to Spiritleaf stores across the country. We are looking forward to working to expand our brand and bring our premium retail cannabis shopping experience to communities in Newfoundland and Labrador. We aspire to be a truly national retail cannabis network so it’s very exciting to be able to say Spiritleaf operates from coast to coast,” said Darren Bondar, President and CEO of Inner Spirit.

Atlantic Cultivation has plans to open a number of Spiritleaf stores in the near term. The Topsail Road store in St. John’s is under construction and expected to open in June 2020 at 673 Topsail Road. Additional stores under construction and being prepared for opening in the province later this year include two in St. John’s, one in Gander and one in Grand Falls-Windsor.

Alex Twells, CEO of Atlantic Cultivation, noted his company’s excitement at today’s announcement. “The agreement between Atlantic Cultivation and Inner Spirit is the result of hard work between companies who share similar values. In these challenging times, we’re thrilled to be a part of this announcement and to help grow the Spiritleaf network. Our core focus is to delight cannabis consumers in Newfoundland and Labrador and with this arrangement we’ll be able to offer a carefully curated cannabis retail experience to the local cannabis community,” said Twells. 

Chris Crosbie, Atlantic Cultivation’s Founder and Chief Operating Officer, added: “Our company is dedicated to providing high-quality cannabis products from our partners, along with our own locally grown cannabis once production starts. This partnership will create opportunity for those looking to enter the industry across Newfoundland and Labrador. This is the beginning of something great and we can’t wait to get started.”

The Spiritleaf retail cannabis store network currently includes 46 open and operating franchised, licensed and corporate-owned stores in Alberta, British Columbia, Saskatchewan and Ontario.  Please visit www.spiritleaf.ca for up-to-date information on store locations and operating hours. Due to the current COVID-19 pandemic, Spiritleaf stores are operating with updated customer service processes to ensure the safety of employees and customers, as well as reduced operating hours at select stores to accommodate revised staffing levels.    

About Inner Spirit

Inner Spirit Holdings Ltd. (CSE:ISH) has established a growing network of recreational cannabis stores across Canada under its Spiritleaf brand. The Spiritleaf network includes franchised and corporate-owned stores as well as an Ontario retail partnership, all operated with an entrepreneurial spirit and with the goal of creating deep and lasting ties within their local communities. Spiritleaf aims to be the most knowledgeable and trusted source of recreational cannabis by offering a premium consumer experience and quality curated cannabis products. The Company is led by passionate advocates for cannabis who have years of retail, franchise and consumer marketing experience. Key industry partners and shareholders include Auxly Cannabis Group Inc. (TSX.V:XLY), HEXO Corp (TSX:HEXO), Tilray, Inc. (NASDAQ:TLRY) and Prairie Merchant Corporation. Learn more at www.innerspiritholdings.com and www.spiritleaf.ca. 

Forward-Looking Information 

This news release contains statements and information that, to the extent that they are not historical fact, may constitute “forward-looking information” within the meaning of applicable securities legislation. Forward-looking information may include financial and other projections, as well as statements regarding future plans, objectives or economic performance, or the assumption underlying any of the foregoing. In some cases, forward-looking information can be identified by terms such as “planning”, “projecting”, “expect”, “believes”, “will”, “anticipated”, “planned”, or the negative thereof or other similar expressions concerning matters that are not historical facts. Examples of such information include, but are not limited to, statements with respect to: the Atlantic Subsidiary opening and operating Spiritleaf branded retail cannabis stores in Newfoundland and Labrador; Auxly being a key strategic supplier to Spiritleaf stores across the country; the Company expanding its brand and bringing its premium retail cannabis shopping experience to communities in Newfoundland and Labrador; Atlantic Cultivation’s plans to open a number of Spiritleaf stores in the near term, including the expected opening of the Topsail Road store in St. John’s and additional stores in St. John’s, Gander and Grand Falls-Windsor. Actual results could differ materially from those currently anticipated due to a number of factors and risks, including but not limited to: the risk that the Atlantic Subsidiary and Atlantic Cultivation do not open Spiritleaf branded retail cannabis stores in Newfoundland and Labrador as anticipated or at all; and other factors and risks outside of the Company’s control. Readers are cautioned that the foregoing list of factors and risks is not exhaustive. Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. The Company’s actual results, performance or achievements could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. The forward-looking information included in this news release is made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.

For further information

Darren Bondar, President and CEO 

Email: [email protected] 

Phone: 1 (403) 930-9300