Inner Spirit Holdings (CSE: ISH) released several updates this morning, primarily of which is that the firm is focused on diluting current shareholders. The move is being conducted to reduce its current ownership percentage by multiple licensed producers, which currently sits above 25%. The move is aimed to allow for the development of corporate retail locations in Saskatchewan and Ontario.
Inner Spirit currently has over 25% of its ownership attributed to multiple licensed producers, which include Hexo, Tilray, and Auxly Cannabis. In an effort to reduce this to meet provincial retail ownership guidelines, the firm intends to conduct a series of financings to dilute current shareholders and reduce the overall percentage of the company owned by licensed producers.
The first action by the company in achieving this target is through a $1.08 million financing conducted with a UK-based private equity firm. The financing resulted in 10,854,542 common shares of the company being issued, at an effective price of $0.10 per share.
Inner Spirit intends of increasing its footprint in the provinces of Saskatchewan and Ontario following the recent changes made to the regulatory framework. In Ontario, the firm has submitted 15 applications for a total of 20 stores in the province.
Finally, Inner Spirit also announced that the company earned $29 million in “system-wide” revenues across the currently operating 43 retail locations in 2019. Those locations however, due to being a mix of franchise and corporate owned stores, will not see the full extent of revenues consolidated on the companies financial statements. A consolidated figure was not provided in today’s release. As of September 30, the company had $7.0 million in revenues for the first nine months of the fiscal year.
Inner Spirit Holdings last traded at $0.12 on the CSE.
Information for this briefing was found via Sedar and Inner Spirit Holdings. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
