Strategic Expansion Plan to Open 2-3 New Stores Per Quarter
Vaughan, Ontario--(Newsfile Corp. - August 26, 2024) - Delota Corp. (CSE: NIC) (FSE:S62) ("Delota" or the "Company") , a leading Canadian omni-channel retailer of nicotine vape and alternative tobacco products, is pleased to announce that as part of its strategic expansion plan, it continues to open new retail locations across Ontario. The Company's flagship brand, 180 Smoke Vape Store ("180 Smoke"), has opened a new retail location at 499 Main Street South, Unit 60D, Shoppers World in Brampton to expand the Company's retail footprint to a total of 31 locations across Ontario.
As part of Delota's expansion plan, the Company's goal is to open two to three new stores per quarter in Ontario and looking at strategic M&A opportunities to quickly scale the business in other provinces across Canada.
In Ontario, with the current infrastructure in place, the Company's able to scale its operations to grow its top-line revenue along with accretive EBITDA increases as additional stores are added to the platform.
Delota has a proven approach to adding new retail locations which is streamlined and efficient. Each new location takes approximately four to six months to breakeven and start generating profit. Opening new retail stores in strategic locations also drives its leading search engine optimization (SEO) and adds new loyalty members to its network of over 240,000 customers to drive system-wide sales.
Cameron Wickham, CEO of Delota, commented, "We are committed to executing on our growth plan by aggressively expanding our footprint across Ontario. With our current infrastructure, we have a significant opportunity to double our footprint across the province, with minimal CAPEX or investment. We are ready and primed for industry consolidation and want to be the leading specialty vape retailer across the country. We have grown the business from $12.9 million in 2021 to a current run-rate of $40 million per year and EBITDA positive. We are already a leader in the sector and in a very strong position to capitalize on the future growth of the industry."
About Delota Corp.
Delota is the largest omni-channel specialty vape retailer in Ontario with a mission of becoming the largest national specialty retailer of nicotine vape and alternative tobacco products. The Company's growth strategy includes aggressively growing its flagship brand, 180 Smoke Vape Store, by expanding its retail footprint organically in Ontario and select provinces across Canada, strengthening its national e-commerce platform, and through strategic M&A to accelerate growth and market consolidation. The Company is committed to expanding its nicotine product assortment, enhancing customer experience, and growing its loyalty accounts, which now exceeds 240,000 members.
Investors interested in learning more about Delota can visit www.delota.com.
For further information, please contact:
Delota Corp.
Julia Becker Capital Markets T: (604) 785-0850 E: ir@delota.com
Cameron Wickham Executive Vice Chair and CEO T: (905) 330-1602 E: info@delota.com
Cautionary Statements
This press release contains "forward-looking statements or information". Forward-looking statements can be identified by words such as: anticipate, intend, plan, goal, seek, believe, project, estimate, expect, strategy, future, likely, may, should, will and similar references to future periods. Examples of forward-looking statements in this press release include statements made regarding information about future plans, expectations and objectives of the Company overall.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. The Company may not actually achieve its plans, projections, or expectations. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the adequacy of our cash flow and earnings, the availability of future financing and/or credit, developments and changes in laws and regulations, consumer sentiment towards the Company's products, failure of counterparties to perform their contractual obligations, government regulations, competition, loss of key employees and consultants, and general economic, market or business conditions, the impact of technology and social changes on the products and industry, as well as those risk factors discussed or referred to in disclosure documents filed by the Company with the securities regulatory authorities in certain provinces of Canada and available at www.sedarplus.ca. Given these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements.
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