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Spyder Cannabis (TSXV:SPDR) to acquire leading vape retailer 180 Smoke
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  • Spyder Cannabis (SPDR) is set to acquire leading vape retailer 180 Smoke
  • 180 Smoke generated approximately C$12.9 million in unaudited net revenue during the year ended December 31, 2020
  • 180's current customer base includes 92,481 in-store accounts, 98,052 online accounts, as well as 235 specialty wholesale vape B2B accounts
  • Spyder is a cannabis and vape retailer that operates in jurisdictions where the products are federally legal in Canada
  • Spyder Cannabis (SPDR) is up 22.2 per cent and is currently trading at C$0.11 per share

Spyder Cannabis (SPDR) is set to acquire the leading vape retailer 180 Smoke.

The company has entered into a binding agreement with CRHC Holdings Corp to acquire all of the issued and outstanding shares of 180 Smoke on a cash-free basis for nominal consideration. Spyder has also secured an institutional investor to acquire all of 180 Smoke's existing debt owing to an affiliate of CRHC Holdings Corp.

180 Smoke generated approximately C$12.9 million in unaudited net revenue during the year ended December 31, 2020. It operates 18 brick and mortar vape retail locations and 8 franchises. The company's customer base includes 92,481 in-store accounts, 98,052 online accounts, as well as 235 specialty wholesale vape B2B accounts.

Spyder will have the ability to convert some of 180 Smoke's existing vape retail locations to licensed cannabis dispensaries utilizing its wholly-owned subsidiary's retail operator license.

Dan Pelchovitz, President & CEO of Spyder, commented, "The acquisition of 180 Smoke is a significant development in Spyder's growth strategy, as it gives the company access to an iconic brand name, an established platform, and a loyal customer base."

Furthermore, Spyder intends to offer its own securities for sale, on a non-brokered private placement basis, at a price of C$0.0675 per unit for proceeds of up to C$1,000,000. Spyder will use the proceeds for general and administrative expenses relating to the 180 Smoke business, debt repayment and general working capital.

Spyder is a cannabis and vape retailer that operates in jurisdictions where the products are federally legal in Canada. The company, through its subsidiaries, is a retailer involved in the development of two retail business units. The first is the sale of cannabis products and the second is the sale of smoking cessation products.

Spyder Cannabis (SPDR) is up 22.2 per cent and is currently trading at C$0.11 per share as of 11:35 am EST.

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