Canada House Wellness Group (OTCPK: SARSF) (CSE:CHV) provided an update with respect to its transaction with Montréal Cannabis Médical Inc. Canada House and MTL Cannabis are working on the integration of their businesses in advance of the closing of the transaction, now expected to occur in calendar Q2 2022, subject to the satisfaction of all remaining closing conditions, namely the receipt of requisite MTL cannabis audited financial statements, the receipt of applicable regulatory approvals and the shareholder approval.
"Given the delay in completing the transaction due to the finalization of MTL Cannabis' financial statements and the required conversion from private company reporting to IFRS, we feel it is vital to communicate our unwavering commitment to this transaction," stated Rich Clement, CEO of MTL Cannabis. "We have made tremendous progress with Chris and the broader Canada House team to integrate our business to the best of our ability in advance of closing so that we maximize the company's operational and financial performance leading to the completion of the transaction and the concurrent resumption of trading. We believe bringing Canada House and MTL Cannabis together will result in a combined business that will change the way Canadian cannabis companies are perceived both operationally and on the bottom line. I want to thank Chris and his team for their continued support as we optimize our respective businesses."
Integration and Business Update
MTL Cannabis has continued to work closely with Canada House's wholly-owned subsidiaries, IsoCanMed Inc. and Abba Medix Corp., to increase MTL Cannabis' presence across Canada.
Abba and MTL Cannabis have secured exciting new genetics testing in excess of 26% THC potency, currently being cultivated at scale within MTL Cannabis' low-cost facility.
MTL Cannabis has agreed to fund capital expenditures related to the retrofit of ICM's licensed production facility located in Louiseville, Québec. The retrofit has been initiated and will be completed under the guidance of MTL Cannabis and will convert grow methodologies at the ICM facility to align with existing methodologies at MTL Cannabis' existing 57,000 sq. ft. licensed facility.
Abba's monthly medical cannabis sales have increased over 60% from summer 2021 levels and have exceeded $500K monthly since Nov 2021. The recent launch of Abba's new bilingual shopping portal has led to increased functionality, higher satisfaction and increased sales in Quebec.
Canada House Clinics now serve up to 4,000 veterans and Abba has reached 1,000 veterans showing continued success in helping this important segment. Abba's daily medical sales exceeded $40K per day for the first time in March 2022.
