Aldershot Resources Ltd. is pleased to announce its transition to Solo Growth Corp.™, a premiere retail cannabis distributor in Western Canada, and to announce: (i) a non-brokered private placement of $25.6 million, which closed on June 28, 2018 (ii) the appointment of a new management team and new board of directors in connection with the completion of the private placement; and (iii) subject to regulatory approval, a rights offering to holders of common shares.
Pursuant to the private placement, 512,000,000 common shares and units (“Units“) of Aldershot were issued at a price of $0.05 per common share or unit, as applicable, for aggregate gross proceeds of $25.6 million.
The resignation of the prior board of directors and management team of Aldershot and the appointment of the new management team and the new board occurred contemporaneously with the closing on June 28, 2018.
New Management Team
The members of the new management team include founding shareholders, senior officers and board members of Canada’s largest private liquor retailer, Solo Liquor Stores Ltd. And collectively have more than 50 years of regulated substance retail experience. The new management team has operational expertise in the regulated retail liquor market, robust customer and real estate analytics and strong, collaborative and constructive relationships with municipalities and regulators across Alberta and landlords across Western Canada.
New Board of Directors
The directors have extensive experience in successfully founding, growing and monetizing public companies.
The new management team and new board have extensive controlled substance retail experience and public company expertise and believe the current market provides an excellent opportunity to transform Aldershot into a sustainable cannabis retailer.
The new management team intends to use the net proceeds from the private placement to establish and launch a leading retail cannabis business in Western Canada. The new management team expects to execute the corporate strategy by capitalizing on its collective experience in the following areas: (i) controlled substance retail market; (ii) an understanding of consumer purchasing habits and provincial demographics from historical data; (iii) leveraging existing relationships with landlords, municipalities and regulators; (iv) expertise tailoring product brands and retail experience; and (v) operational know-how including store sizing, site development, inventory management, staffing, training and cost structure.
The proceeds provide the new management team a platform to grow a sustainable retail cannabis business in Western Canada with a goal to open over 60 retail cannabis locations across Alberta in the next three years. Proceeds from the private placement will be used to fund licenses, lease and develop retail properties and for general working capital purposes.
The retail cannabis locations are anticipated to be operated under the name “Yellow Submarine By Solo”™. Please see Exhibit 1 for an illustration of the Yellow Submarine By Solo logo.
Exhibit 1: Yellow Submarine By Solo logo
It is anticipated that the shareholders of Aldershot will be asked to approve, at a special meeting called for such purpose, a change of the name of the Company to “Solo Growth Corp.”™.
About Aldershot Resources Ltd.
Upon completion of the Transaction, the Company will execute a new retail-focused cannabis business strategy. The Transaction has received unanimous approval from the board of directors of Aldershot.
Forward-Looking and Cautionary Statements
This information may include forward-looking statements including opinions, assumptions, estimates, the new management team’s assessment of future plans and operations, and, more particularly, statements concerning the completion of the transaction, the number of securities issued by way of the private placement, the business plan of the new management team, including future retail cannabis locations, the change of name of the Company, use of proceeds following completion of the transaction and statements concerning a potential share consolidation. When used in this document, the words “will,” “anticipate,” “believe,” “estimate,” “expect,” “intent,” “may,” “project,” “should,” and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by Aldershot which include, but are not limited to, the timing of the receipt of the required regulatory and third party approvals, the future operations of, and transactions completed by Aldershot as well as the satisfaction of other conditions pertaining to the completion of the Transaction. Forward-looking statements are subject to a wide range of risks and uncertainties, and although Aldershot believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to, regulatory and third party approvals not being obtained in the manner or timing anticipated by Aldershot, changes to cannabis laws, the timing of the legalization of recreational cannabis, the availability of cannabis-retail products from licensed producers, the ability to implement corporate strategies, the state of domestic capital markets, the ability to obtain financing, changes in general market conditions and other factors more fully described from time to time in the reports and filings made by Aldershot with securities regulatory authorities. Except as required by applicable laws, Aldershot does not undertake any obligation to publicly update or revise any forward-looking statements.