Today Superette Inc. said it was buying Cannoe Corp. secured $5 million in financing. Cannoe has six stores that will give Superette exposure to new areas and key brand-driven markets including highly frequented cottage and resort towns. Superette said in a statement that the acquisition of Cannoe brings immediate and meaningful scale to its retail operations, doubling its footprint to twelve operating stores, with four locations to be finalized in 2022.
The acquisition, financing, and combination of teams provide the resources and operational excellence required to build a durable business and enter new markets. Founded in 2018, Cannoe quickly attracted the attention of industry veterans, like the founders of Roots, who were early investors along with Stephen Arbib co-founder of MedReleaf.
“Since our launch, Superette has stood out as the retail brand that reflects the attitudes a huge portion of recreational customers have – simply put, we exist to make buying cannabis fun. With an ambitious aesthetic and unforgettable retail experiences, Superette is our interpretation of the intersection of cannabis, lifestyle, and community,” said Mimi Lam, Co-Founder of Superette.
In connection with the transaction, Superette said it was able to secure $5 million in financing to support strategic growth opportunities, both organic and inorganic. As part of the transaction, Superette is adding significant corporate resources to its executive team and board of directors. Cannoe’s President Matt McLeod is joining Superette as CEO. Matt is an experienced executive with extensive corporate and cannabis experience.
“I’m super excited to be joining Superette as CEO. Cannabis retail in Canada is a rapidly growing and maturing market, and I feel really fortunate for the chance to work with co-founders Drummond Munro and Mimi Lam. I’m thrilled to have the opportunity to combine the complementary abilities of the Cannoe and Superette teams and strongly believe that we have a team ready to capitalize on the opportunities ahead of us. This financing and transaction positions us for continued outperformance on service, product excellence and growth. Superette offers a truly unique retail experience, and we will continue to leverage the brand, vision and service, but we have a lot to learn from those who have shaped the industry from the legacy market to today and made a company like ours possible. I’m looking forward to getting to work with this talented group,” said Matt McLeod, Chief Executive Officer, Superette
Superette was founded by Drummond Munro and Mimi Lam, with a unique and differentiated approach to cannabis retail. The Company has built an industry-leading following, and its stores are the hallmark of every neighborhood they operate in. By bringing both teams, resources, and operations together, they have created the most robust independent retail platform in Ontario.
Since legalization in 2018, the legal cannabis retail market in Ontario has grown by $2.3 billion, at a compound annual growth rate of 131%, with the last quarter of 2021 estimated to be $450mm. In this rapidly growing and challenging market, Superette has been able to rise above, time and time again. Often positioned alongside some of the most iconic fashion retail names in the world for its striking store design and brand aesthetic, Superette stands out among its competitors in the highly saturated cannabis retail market. The award-winning brand has secured the attention of consumers and the media alike, growing its audience by 119% and boasting hundreds of millions of top tier media impressions last year, with a Net Promoter Score of 95 which outperforms both cannabis and traditional non-cannabis retailers.