Second Cup, Canada’s second-largest retailer of speciality coffee wants to convert some of its coffee outlets to recreational cannabis dispensaries and lounges.
The Canadian coffee chain said it signed a strategic alliance with cannabis clinic operator National Access Cannabis (NAC) to develop and operate a network of recreational cannabis dispensaries.
The NAC-branded pot stores will initially be located across Western Canada, expanding to include additional provinces where legally permissible.
NAC said it will apply for licenses to dispense cannabis products and upon receipt, will work with Second Cup and applicable franchisees to leverage the Second Cup brand and construct retail stores carrying leading cannabis products.
The company also said conversion of Second Cup stores to NAC-branded recreational pot dispensaries and lounges will be conditional on obtaining a retail license from provincial regulators and the approval of Second Cup as well as the applicable franchisees and landlords.
Additionally, NAC has issued to Second Cup warrants to purchase an aggregate of 5,000,000 common shares of the company at an exercise price of 91 cents per common share that expire on April 12, 2023.