Chalice Brands to Lease Retail Property from Aventine to Open Flagship Superstore
Chalice Brands Ltd. (CSE: CHAL) (OTCQB: CHALF), a premier consumer-driven cannabis company specializing in production, processing, wholesale, distribution, and retail, has announced its completion of an agreement to lease a retail property located in Portland, Oregon, from Aventine Property Group, Inc.
About Chalice Brands Ltd.
Chalice Brands is an EBITDA-positive, financially disciplined, and multi-state operating, a premier consumer-driven cannabis company. It owns 12 dispensaries and manages 4 in and around Portland in Oregon.
Chalice operates nationally through Fifth & Root, a well-known CBD skincare brand. It is committed to developing a dynamic portfolio built around the recognized brands of Chalice Farms, with a focus on health and wellness, and building a strong brand presence in the country’s West Coast.
About the Company’s New Flagship Superstore
Jeff Yapp, President & Chief Executive Officer of Chalice, said that the company had been working diligently to identify the ideal location for its new, state-of-the-art flagship superstore.
He added that establishing a centralized consumer headquarters in Portland would allow for better synergy of product awareness and delivery while presenting a meaningful draw for the company’s customers.
He added that the Chalice team was excited to open the doors to that flagship location, which would allow them to showcase their award-winning brands and dispensary experiences to the entire Oregon cannabis market.
Mr. Yapp stated that the company was thrilled to collaborate with Aventine on this step forward and looked forward to a continued partnership as Chalice improved its ability to accelerate expansion.
According to Mr. Yapp, the transaction not only represented the beginning of an important partnership with Aventine but was also a validation of the progress Chalice had made in cementing the company’s position as one of Oregon’s leading cannabis companies.
The company’s approach to capital allocation in the previous year had resulted in four sequential quarters of positive cash flow and adjusted EBITDA, record third-quarter revenues, and notable accretive acquisitions. He stated that Chalice would continue to pursue real estate investments on the West Coast to accelerate its growth in the U.S. cannabis market.
Raymond J. Lewis, President and Chief Executive Officer of Aventine Property Group, Inc., said his company was excited to launch a meaningful relationship with Chalice to facilitate its new superstore facility in Central Portland and cement its leadership position in the market. He said he looked forward to working with Chalice to further execute their long-term West Coast retail growth strategy.
- Under the terms of the Agreement, Chalice will lease a Portland, Oregon property located at 5341 SE McLoughlin Blvd from Aventine at a competitive market rate, including the expenses for tenant improvement, amortized over a ten-year period from the date of the store opening.
- The property is planned to be branded as Chalice’s flagship superstore and is expected to be the largest store among those currently owned and operated by Chalice. The property includes 10,000 square feet of retail store space, ample parking, 301 feet of frontage on McLoughlin Blvd, landmark pylon signage, and is situated on a high-traffic street where about 51,000 vehicles pass on a day.
- With the opening of the new store, the number of Chalice’s retail stores will increase to 17, thereby strengthening the company’s footprint in Central Oregon. It will result in a 140% increase in turnover in the current financial year.
- The store is expected to be equipped with an event and community space, an educational training center, a delivery hub, and a product hub. It will provide considerable showcasing for Chalice partners and foster the progress of the cannabis community as a whole. The facility, by accommodating the challenges of the pandemic, would provide a safe place for the company’s customers to collect their orders.
- The superstore is expected to be operational by the start of the second half of 2022.
Meghan Miller, Chief Operating Officer of Chalice, said that the company was excited to open the Chalice flagship superstore at the new location for offering its vendors and partners the opportunity to showcase their products in the Oregon market, and its customers to experience the best that Oregon could offer in one location.
She added that the company was looking forward to utilizing the superstore and its event space to become an important member of the local community.