Spyder Cannabis Inc (CVE:SPDR) reported that it has completed its previously-announced acquisition of Canadian vape retailer 180 Smoke.
The company noted that 180 Smoke, which sells high-quality e-cigarettes, vaporizers and other nicotine-related products, generated about C$12.9 million in unaudited net revenue during fiscal 2020 from nicotine vape sales, franchise revenue, as well as other wholesale and distribution revenue.
“We are extremely excited to welcome 180 Smoke to the Spyder team, which undoubtedly strengthens our management and operating teams bringing strong retail processes and expertise to Spyder,” Spyder Cannabis CEO Dan Pelchovitz said in a statement.
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“The acquisition of 180 Smoke significantly accelerates the development of Spyder's cannabis and vape retail growth strategy, providing access to an iconic brand name, an established platform, and a loyal customer base,” Pelchovitz added.
“We are excited by the prospects ahead of us and executing on our immediate cannabis retail expansion plans in Ontario.”
The company added that 180 Smoke has 18 brick and mortar vape retail locations, along with eight franchises, which includes 92,481 in-store accounts, 98,052 online accounts, in addition to 235 specialty wholesale vape B2B accounts.
As well, Spyder Cannabis said it expects to realize synergies between 180 Smoke's existing customer base and Spyder's cannabis business, especially after it integrates its two brick and mortar vape retail stores with 180 Smoke's existing retail operations.
Spyder Cannabis also noted it will have the ability to convert some of 180 Smoke's existing vape retail locations to licensed cannabis dispensaries by obtaining a Retail Store Authorization from the Alcohol and Gaming Commission of Ontario (AGCO).
Spyder Cannabis is a cannabis and vape retailer that operates in jurisdictions where the products are federally legal in Canada. Through its subsidiaries, the company is involved in the sale of cannabis products as well as the sale of smoking cessation products.
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