Second Cup to change name, launch cannabis stores next year
Second Cup Ltd. announced plans on Friday to both change its name to Aegis Brands Inc. and launch cannabis retail stores in 2020.
Upon approval by shareholders and the Toronto Stock Exchange, the Mississauga, Ont.,-based company said in a press release that Aegis will become a parent company and will operate the Second Cup Coffee Co. as a brand.
Steven Pelton, president and CEO of Second Cup, will become the chief executive of the new Aegis Brands. He will also retain his role as president of Second Cup.
“We created Aegis with the vision of building a portfolio of amazing brands that can grow and flourish with access to our resources and expertise,” Pelton said in the release. “We are committed to letting each company under the Aegis Brands umbrella operate as an independent brand, and to working with them to provide shared expertise — and shared services — to help them thrive.”
Pelton said Aegis would be looking for other companies to buy in the foodservice, coffee and cannabis industries to sit alongside Second Cup Coffee Co. under the umbrella corporation.
In a separate release, the soon-to-be Aegis announced it would be opening two pot shops in Calgary during the first quarter of 2020 through a joint venture with National Access Cannabis. The company is also looking at Ontario for some point in the future.
“Ontario is a great opportunity for a retail cannabis partnership to flourish,” Pelton said in the release. “We believe location and service is key to winning when this market opens up, and we are well positioned for future success in this province.”
The news comes as the company said it suffered a third-quarter loss after same-store sales fell 2.9% from Q3 2018. Second Cup swung to a $762,000 loss and a $62,000 adjusted loss on $6.7 million in revenue compared with a $766,000 profit and $432,000 adjusted profit on $5.9 million in revenue during the same period in 2018.
The proposed name change will be voted on by shareholders at the annual general meeting in May of next year.