Second Cup has signed a deal with a marijuana clinic operator that will allow it to create and run recreational pot dispensaries starting in Western Canada.
The coffee chain announced the deal, which could see Second Cup cafes converted into recreational marijuana stores, with National Access Cannabis (NAC) on Thursday. NAC is one of the companies chosen by the Manitoba government to handle retail sales of recreational marijuana once it’s legal.
“This strategic relationship provides Second Cup with a great opportunity to leverage our select real estate assets to increase value for shareholders and franchise partners,” said Garry Macdonald, Second Cup chief executive, in a statement.
NAC’s role is to apply for licenses to sell marijuana products and then work with Second Cup to develop and build stores carrying those products.
Initially the stores will be in Western Canada, but will expand to other provinces where it’s legally possible, according to a news release.
Second Cup locations will only be converted to dispensaries if a license is obtained from a provincial regulator and with the approval of the landlord and franchisee.
NAC has issued a warrant to Second Cup to purchase an aggregate of 500,000 common shares of the company at an exercise price of 91 cents per common share. The warrant expires in April 2023.
Macdonald said the coffee chain is focused on “growing our Second Cup brand and sales through continued product innovation and expanding our network across Canada.”
With files from the Canadian Press.
