Isodiol Acquires Stake in Compass Cannabis Clinic Amid Expansion Plans

Date:

Share post:

A global company, specializing in the development of pharmaceutical and wellness products, is acquiring 19.9 per cent of Compass Cannabis Clinic, based in Kelowna, B.C.

Isodiol International Inc. is a global Bioactive CBD innovator. Cannabidiol—CBD—is a cannabis compound that has significant medical benefits.

Under the terms of the acquisition, Isodiol will have exclusive CBD distribution rights for its family of brands through the Compass distribution network.

Dave Martyn, president of Compass Cannabis Clinic, said the strategic relationship with Isodiol secures for its patients access to a full line of the highest-quality Cannabidiol products.

“In addition to our supply agreement, Isodiol’s equity participation will help strengthen our profile and support the continued expansion of our footprint and operation. We have already established Compass as a leading private cannabis retailer in Western Canada and we are actively going to pursue additional retail licensing opportunities across the country.”

Image: Compass Cannabis Clinic

Compass Cannabis has two separate models of business operations. The retail model will be rolling out post legalization. The clinic model exists today.

“The unknown in terms of the clinics is what will medical look like post legalization in Canada. We know it’s still going to be there and we know it’s going to be an important factor with insurance but we did want to add another line and for us that was retail sale items,” said Martyn. “Isodiol operates on the CBD side of the business. CBD is likely to be de-classified, particularly CBD that comes from hemp.

“The products work exceptionally well. CBD is probably the most under-appreciated business line. We’ll see going forward . . . Isodiol has the ability to deliver the product which is important. I think CBD will have potential for shortages based on the demand that we’re seeing globally at this point. And they’re also working with us on our own line of products which is exciting as well.”

Compass Cannabis currently has 12 clinics that are open. Some operate as full Compass Cannabis Clinics while others operate through medical practitioner offices.

“We’ve got 39 locations right now that we’ve either executed leases on or effectively letters of intent that we’re going to open them up,” said Martyn. “They’re on a staggered timeline. Some of them go all the way out to 2020. But it is one we’re hoping to expand quite thoroughly through Western Canada but we’re also getting a lot of calls from Eastern Canada right now. Ontario in particular is a market that seems ripe.’

Martyn said post legalization many current Compass locations will evolve into a retail business model, where provincial and municipal licensing allow, thus running both business models simultaneously.

He said the Compass medical operation will also begin exploring opportunities in international markets, including expanding into Australia in the third quarter of 2018, through existing operational partnerships.

Previously,  Compass Cannabis announced it was hooking up with Starbuds, a leading cannabis retailer in the United States, to create a network of retail locations across Canada. The joint venture foresees up to 40 retail locations, perhaps more, in Western Canada.

“Compass has put together an excellent business plan to capitalize on the upcoming medical and retail opportunities in select provinces and to establish itself as one of Canada’s largest and most trusted cannabis clinic operations,” said Marcos Agramont, CEO of Isodiol, in a statement.

“Compass differentiates itself in the marketplace by offering prime locations, free appointments and most importantly exceptional patient education, care and support, which align well with our values.”

The agreement between Isodiol and Compass  also includes Isodiol setting up a distribution channel for its family of THC-free Cannabidiol brands and products, pending regulation in Canada. Isodiol will also provide Compass with a private label line of additional Cannabidiol products for its fast growing patient base.

Per the agreement, Isodiol will issue a total of $4 million with $2 million paid in cash and $2 million paid in stock for the 19.9 per cent of equity acquisition, subject to 36-month escrow.

Mario Toneguzzi
Mario Toneguzzi
Mario Toneguzzi, based in Calgary, has more than 40 years experience as a daily newspaper writer, columnist, and editor. He worked for 35 years at the Calgary Herald covering sports, crime, politics, health, faith, city and breaking news, and business. He is the Senior News Editor with Retail Insider in addition to working as a freelance writer and consultant in communications and media relations/training. Mario was named as a RETHINK Retail Top Retail Expert in 2024.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More From The Author

RECENT RETAIL INSIDER VIDEOS

Advertisment

Subscribe to the Newsletter

Subscribe

* indicates required

Related articles

Toronto’s CF Sherway Gardens Hits Sales Milestone with Exciting Retail Growth and Future Plans [Interview]

The shopping centre is adding new retailers as sales per square foot hit an all-time high, with plans to re-tenant Nordstorm as foot traffic grows following Eataly's opening in the mall a few months ago.

ECS Coffee Opens Canada’s Largest Coffee and Espresso Equipment Gear Showroom and Retail Space in Toronto [Interview]

The new Etobicoke location is unique to Canada if not North America, according to its founder, with coffee roasting, equipment showroom, over 500 varieties of coffee, Youtube studio and various in-store experiences. He has plans to expand the concept nationally.

New Loblaws City Market Opens in Vancouver’s ‘The Post’ Building, Adding Grocery Competition to the Downtown Core [Podcast]

Craig and Lee discuss the opening of a new Loblaws City Market in downtown Vancouver's renovated Post building, and they explore its potential impact on local grocery shopping.

Loblaw Announces $2 Billion Investment in Canada for 2024 with Dozens of New Stores and 7,500 New Jobs [Expert Comment]

The retail behemoth will be growing substantially this year, following backlash over profits as inflation continues to impact Canadians.

Dubai-Based Asian Street Food Concept ‘Wok Boyz’ Expands into Canada with Plans for Multiple Locations [Interview]

The company's founder says the popular concept, with personalized meals, has an opportunity to grow substantially with its high-quality ingredients and theatrical flare, complete with fiery customer-facing woks.

Calgary Surge Basketball Team Launches Innovative Pop-Up at CF Chinook Centre to Boost Community Engagement [Interview]

The retail activation, which opened this month, is resulting in heavier foot traffic in a quieter part of the mall.

Upscale Pusateri’s Fine Foods to Close Yorkville Grocery Store in Toronto After 20 Years

The 5,500 square foot store opened to much fanfare in 2003, with valet parking, private chefs and pricey goods. 

Loblaw and Walmart Could be Forced to Adhere to Grocery Code of Conduct with Legislation [Op-Ed]

Sylvain Charlebois says that it's rare for all of Canada's political parties to agree, signalling a shift that could force grocers to comply amid record inflation.

Factory Direct to Shut All 14 Stores Amid Bankruptcy, Liquidation to Begin Saturday

The company, founded in 1995, is one of Canada’s largest privately owned discount retailers which struggled with declining sales and increasing costs following the pandemic.

What to Expect for the Canadian Retail and Hospitality Sectors in 2024 [Video Interview]

Michael Kehoe provides an expansive overview of what's expected for Canada's retail industry in 2024, and how the commercial real estate industry is becoming more dynamic than ever.

Anatomy of a Leader: David Lui, CEO of Kit and Ace and Co-Founder of Unity Brands

Lui has an extensive background in retail with over 30 years of experience and is known for his award-winning brand transformations, e-commerce and digital knowledge along with his passion for scaling businesses.

Robotic Retail Gaining Traction in Canada, But Some Consumers are Being Left Behind [Op-Ed]

Automated retailers without in-store staff are opening across Canada, such as Aisle 24, RC Coffee and PizzaForno -- but consumers without smart phones, credit cards, or with vision issues may not be able to access these retailers says a researcher.