- Spyder Cannabis (SPDR) has closed a deal to acquire 180 Smoke
- 180 Smoke is a vape retailer in Canada
- Spyder acquired all outstanding shares of the entities that collectively comprise the business of 180 Smoke from CRHC Holdings Corp.
- Spyder expects to integrate its two brick and mortar vape retail stores with the existing 180 Smoke locations
- Spyder Cannabis is unchanged on the day, with shares of the company trading at C$0.10 at 1:28 pm ET
Spyder Cannabis (SPDR) has closed a deal to acquire 180 Smoke.
Under terms of the agreement, Spyder acquired all outstanding shares of the entities that collectively comprise the business of 180 Smoke from CRHC Holdings Corp.
180 Smoke is a vape retailer in Canada.
Spyder Cannabis has also hired a strategic institutional investor to lead the acquisition of all the existing debt of 180 Smoke owing to one of its affiliates.
“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.
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. We are excited by the prospects ahead of us and executing on our immediate cannabis retail expansion plans in Ontario,” said Spyder Cannabis President and CEO Dan Pelchovitz.
The company expects the acquisition to immediately increase Spyder’s consolidated revenue with the addition of 180 Smoke’s nicotine vape sales, franchise revenue and other wholesale and distribution revenue which generated approximately $12.9 million in unaudited net revenue with gross margins of 50 per cent during the 2020 fiscal year.
Meanwhile, 180 Smoke has a team of 91 employees who will continue to operate 180 Smoke’s 18 brick and mortar vape retail locations, eight franchises, and its corporate head office and distribution warehouse, following the closing of the acquisition.
Spyder expects to integrate its two brick and mortar vape retail stores with the existing 180 Smoke locations.
Spyder Cannabis is unchanged on the day, with shares of the company trading at C$0.10 at 1:28 pm ET.