Sundial Growers Inc. SNDL reiterated its commitment to the proposed plan of arrangement with liquor retailer Alcanna Inc. CLIQ as previously announced in October and announced ISS' support for the plan.
The Calgary, Alberta-based cannabis company noted that it is committed to the current consideration offered to Alcanna shareholders whereby Alcanna's shareholders will receive, for each common share of Alcanna held, 10.69 common shares of Sundial.
Based on this fixed exchange ratio and closing price of Sundial shares on Dec. 7, 2021, the consideration represents a deemed value of approximately $8.08 per Alcanna share. This value implies an 11% premium from the closing price of Alcanna shares on the TSX as of Dec. 7, 2021.
Sundial, Reddit’s favorite marijuana stock, also reported that it should take approximately 3 days of liquidity for holders of Alcanna shares to dispose of all Sundial shares received pursuant to the arrangement.
Additionally, Institutional Shareholder Services Inc. ("ISS"), a leading independent proxy advisory firm, has recommended that Alcanna shareholders vote "FOR" the resolution approving the arrangement at Alcanna's special meeting of shareholders.
"Despite recent market volatility, we remain committed to our plan of arrangement with Alcanna,” Sundial's CEO Zach George stated. “This plan received the unanimous support of Alcanna's board and management, in addition to the support of global governance advisor ISS. Sundial shareholders demand discipline when it comes to capital deployment, and our strong capital base is in high demand in the current environment, which is seeing increasing levels of financial distress. We respect the right of Alcanna shareholders to vote for or against the Arrangement at the upcoming meeting."
Sundial’s shares traded 3.23% higher at 62 cents per share during Wednesday’s pre-market session.
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