Delota Announces Retail Partnership in Eastern Canada
Rhea-AI Summary
Delota Corp. (CSE: NIC) has announced a strategic retail partnership through its subsidiary 180 Smoke with 180 Global, a Quebec-based private business. The partnership involves licensing Delota's 180 Smoke brand for online vape product sales across five Eastern Canadian provinces.
Under the agreement, 180 Global will operate the brand in Quebec, New Brunswick, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island. The company will pay service and royalty fees to 180 Smoke. While this restructuring may lead to reduced reported revenues and expenses, management expects the partnership to potentially improve profitability in these regional markets.
Positive
- Potential improvement in profitability for Eastern Canadian operations
- Revenue stream from service fees and royalties from 180 Global
- Operational cost reduction through transfer of functions to partner
Negative
- Expected reduction in reported consolidated revenues
- Decreased operational control in Eastern Canadian markets
Vaughan, Ontario--(Newsfile Corp. - July 7, 2025) - 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 its wholly-owned subsidiary, 2360149 Ontario Inc. d/b/a 180 Smoke ("180 Smoke"), has entered into agreements with 180 Global, a private Quebec-based business in the nicotine vape sector, relating to the licensing of Delota's flagship 180 Smoke brand for retail online sales of vape products in certain specified provinces (the "Retail Partnership"). Under the terms of the agreements entered into in connection with the Retail Partnership, 180 Global has limited authorization to use the 180 Smoke brand in connection with the sale of vape products in the provinces of Quebec, New Brunswick, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island (the "Regional Markets"). 180 Global will assume operational functions in the Regional Markets to effect the Retail Partnership. In exchange, certain service fees and a royalty fee will be payable to 180 Smoke by 180 Global in connection with the Retail Partnership and sales of vape products in the Regional Markets.
As a result of the Retail Partnership, Delota anticipates there may be a reduction in reported revenues and expenses on its consolidated financial statements, as operational functions are transitioned from 180 Smoke to 180 Global. These changes are expected to be reflected in Delota's future consolidated financial statements as the Company adjusts its operational structure in connection with the Retail Partnership. Management believes that, if successful, the Retail Partnership may have a positive impact on profitability in the Regional Markets, which would be reflected in future financial results.
About Delota Corp.
Delota is the largest omni-channel specialty vape retailer in Ontario with a mission of becoming one of the largest national specialty retailers 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 registered customer base, which now exceeds 280,000 accounts.
Investors interested in learning more about Delota can visit www.delota.com.
For further information, please contact:
Delota Corp.
Cameron Wickham
Executive Vice Chair and CEO
T: (905) 330-1602
E: ir@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 regarding the anticipated impact of the Retail Partnership, including potential effects on the Company's reported revenues, profitability, sales growth, operational structure, and future financial results.
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. 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, including assumptions regarding the successful implementation and execution of the Retail Partnership, the ability of 180 Global to perform its obligations under the agreements relating to the Retail Partnership, and the regulatory environment in the Regional Markets. Important factors that could cause actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others: the adequacy of cash flow and earnings, the availability of future financing and/or credit, developments and changes in laws and regulations (including those affecting the sale and distribution of nicotine vape and alternative tobacco products), consumer sentiment towards the offered nicotine vape and alternative tobacco products, failure of counterparties to perform their contractual obligations, government regulations, competition, loss of key employees and consultants, general economic, market or business conditions, the impact of technology and social changes on the nicotine vape and alternative tobacco products and industry, as well as those risk factors discussed or referred to in disclosure documents filed by the Company with 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.
Any forward-looking statement made by us in this press release is based only on information currently available to the Company and speaks only as of the date on which it is made. Except as required by applicable securities laws, Delota undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
The CSE has neither approved nor disapproved the contents of this news release.
Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/257954
FAQ
What regions are included in Delota's new retail partnership with 180 Global?
How will the 180 Global partnership affect Delota's financial statements?
What are the key terms of Delota's agreement with 180 Global?
Will Delota (CSE: NIC) maintain operations in other Canadian provinces?
