Ontario Budget 2019: Step Forward for BlackShire investee company mīhī as Government commits to new operator pre-approval process
April 12th 2019
Toronto, Ontario: April 12, 2019 – As a result of promises made in Ontario’s provincial budget, BlackShire Capital Corp. (“BlackShire” or the “Company”) is pleased to highlight positive momentum for mīhī, the Company’s cannabis retail investment.
In the Budget, the Government announced that it is developing a process to allow the AGCO to pre-qualify operators (like mīhī) that seek to enter the market. The Budget document added that the pre-qualification criteria can include, among other expected financial and operational requirements, information confirming lease or ownership interests in potential retail store locations. This important pre-qualification criteria aligns with mīhī’s previous decision to retain its premiere province-wide store network. The Government also re-affirmed its commitment to an open allocation of cannabis retail store licenses as supply issues subside.
“BlackShire has been a strong advocate for the pre-qualification of operators and was pleased to see an announcement in the Ontario Budget yesterday committing to this process. In our view, it is an important step forward for the industry and begins the transition to an open and competitive marketplace with professional operators, like mīhī, at the helm” stated Kevin Reed, Chairman and Chief Executive Officer.
With a stepped return to its previously designed open private retail cannabis network, Ontario is poised to become Canada’s largest recreational market according to new research by ArcView and BDS Analytics.
“We are going to work more closely with Canada’s LPs to better understand what can be done to improve the supply of cannabis into a growing Ontario retail network. The Government re-affirmed that it will return to an open allocation of licenses as supply issues subside giving it a fighting chance to reduce the sizeable illegal cannabis market. Our estimates suggest that about $1B of private investment will flow to build out cannabis retail stores in Ontario creating close to 20,000 new jobs ” added Mr. Reed.
BlackShire invests primarily in private cannabis companies. Headquartered in Toronto, BlackShire’s approach to investment centers on active management of private companies and in investing proven executive co-founders, funded to build world-class management teams in high growth cannabis categories. The Company’s business objective is to achieve superior risk-adjusted returns by aligning its investment capital, investment processes and management capabilities with emerging cannabis companies that have the potential to become industry leaders. BlackShire’s Executive in Residence Program is a unique differentiator in the fast-growing cannabis private equity space. For more information, please visit www.blackshiregroup.com.
This news release contains forward looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward looking statements or information. Forward-looking statements and information in this news release includes, but is not limited to, the planned opening of mīhī’s cannabis retail stores. Although the Company believes that the expectations and assumptions on which the forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company cannot give any assurance that they will prove to be correct. Since forward looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results and developments may differ materially from those that are currently contemplated by these statements depending on, among other things, risks relating to the ability to obtain or maintain licenses for retail stores in Ontario; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; and the medical and retail cannabis industry in Canada generally. The Company cautions that the foregoing list of risks and uncertainties is not exhaustive.
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