PharmaDrug Inc. Closes Transaction to Acquire First Smart Shop in the Netherlands and Now Initiates Major Push to Acquire Best of Breed High Traffic Locations
Toronto, Ontario--(Newsfile Corp. - September 21, 2020) - PharmaDrug Inc. (CSE: BUZZ) (OTC: LMLLF) ("PharmaDrug" or the "Company") is pleased to announce that its wholly-owned subsidiary Interrobang Ltd. (doing business as Super Smart) ("Super Smart") has closed the transaction to acquire the retail establishment specializing in the sale of psychedelic products that was previously announced in the Definitive Agreement signed on August 14, 2020.
Super Smart has commenced a ten-day transition period with the previous owner to co-manage the store and the Company will take effective control on October 1, 2020. The Smart Shop is located in the Town of Tiel, a municipality in central Netherlands, and will serve as an initial platform for Super Smart to build out and refine its new smart shop vision and a springboard to develop its brand and operations. Over the past few months, Super Smart has laid much of the groundwork needed to purchase the first store and as such began developing the organizational structure that will enable the company to make several more purchases and scale up more efficiently. The work includes hiring a country manager, setting up corporate structures, template legal contracts, financial controls and bank accounts.
By taking control of its first store, Super Smart can now start working towards its modern vision for the Smart Shop that will focus on an elevated experience that should improve the current opinion regarding psychedelics amongst the Dutch population. This will include education, micro dosing products and a broader introduction of functional mushrooms. We will also look to work with producers to help modernize the branding of the products sold in our shops.
Our consolidation plans will unify several shops under one collective system. This includes the store design and back end functionality of the stores POS and CRM. This will allow us to collect valuable customer information that will help in creating a unique customer experience for each individual. There will be an important education component with a training program established for all customer facing employees.
Harry Resin, President of Super Smart, commented, "Education will be a foundation upon which our stores will be built. Having worked in the cannabis industry in The Netherlands for more than fifteen years and in California for the last 5 years, I plan on taking my experience in brand building and bringing that to Slim Winkel, our Dutch psychedelic retail concept."
Acquisition and Store Expansion Strategy
Super Smart is still involved in active discussions with three additional smart shop owners in the Netherlands. While all three of those discussions are still ongoing, Super Smart is waiting to see the impact of the Covid pandemic on their sales to help determine the appropriate price. We believe the current resurgence should contribute to more attractive valuations. Additionally, the company has begun discussions with industry veterans who share in our vision and together we are contemplating opening new stores instead of acquiring existing ones. Vacancies are climbing across the country while rents are dropping in best of breed retail locations. We have already started looking for strategic locations in high traffic areas in top cities and towns. Additionally, management now believes that given the pandemic, it makes more sense to begin an online platform sooner.
About PharmaDrug Inc.
PharmaDrug Inc. is building an international controlled substance and natural medicine company with a focus on Europe. The Company owns 80% of Pharmadrug GmbH, a German medical cannabis distributor, with a Schedule I European Union narcotics license allowing for the importation and distribution of medical cannabis to pharmacies in Germany and throughout the EU. The Company also owns 100% of Super Smart, an early-stage retail company focused on consolidating the fragmented Dutch smartshop market. Smartshops are retail establishments in The Netherlands that specialize in the sale of psychoactive substances including psychedelic truffles.
For further information, please contact:
Daniel Cohen, Chairman and CEO
Caution Regarding Forward-Looking Information:
THE CANADIAN SECURITIES EXCHANGE HAS NOT REVIEWED NOR DOES IT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release may contain forward-looking statements and information based on current expectations. These statements should not be read as guarantees of future performance or results of the Company. Forward looking statements in this press release relate to the integration of the Smart Shop business, anticipated volume growth in the Company's German business and the introduction by the Company of its own brand of medical cannabis. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management's reasonable assumptions, there can be no assurance that such assumptions will prove to be correct. We assume no responsibility to update or revise them to reflect new events or circumstances. The Company's securities have not been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or applicable state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the United States or "U.S. Persons", as such term is defined in Regulations under the U.S. Securities Act, absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or any jurisdiction in which such offer, solicitation or sale would be unlawful. Additionally, there are known and unknown risk factors which could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein, such as, but not limited to dependence on obtaining regulatory approvals; the ability to locate additional supply of medical cannabis, owning interests in companies or projects that are engaged in activities currently considered illegal under United States federal law; changes in laws; limited operating history, reliance on management, requirements for additional financing, competition, hindering market growth; regulatory and political change. All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.
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