Sundial Still Committed To Deal With Liquor Retailer Alcanna Despite Cannabis Market Volatility

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.

Sundial’s Commitment

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.

ISS Support

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."

Price Action

Sundial’s shares traded 3.23% higher at 62 cents per share during Wednesday’s pre-market session.

Photo: Courtesy of 2H Media on Unsplash

Posted In: cannabis stocksInstitutional Shareholder ServicesZach GeorgeCannabisM&ANewsPenny StocksSmall CapMarkets

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.