SNDL Inc. SNDL has entered into an agreement with Lightbox Enterprises Ltd. to acquire four cannabis retail stores operating under the Dutch Love Cannabis banner. Under the agreement, SNDL will acquire from Lightbox the rights to four Dutch Love stores and the rights to use certain Dutch Love related intellectual property for a total consideration of $7.8 million.
As part of the agreement, SNDL will acquire the rights to three Dutch Love stores in British Columbia and one store in Ontario. The combined assets generated annual revenue of $11.5 million in 2022, with an average gross margin of 36.5%. The completion of the acquisition is expected to further solidify SNDL's position as a multi-banner cannabis retail operator by enhancing the company's market share and its exposure to a broader consumer base in two key markets.
The transaction is expected to be completed in the context of Lightbox's proceedings under the Companies' Creditors Arrangement Act from the Supreme Court of British Columbia. On December 2, 2022, the Court granted an order that approved a sale and investment solicitation process ("SISP") in respect of the assets, undertakings and properties of Lightbox, and the agreement is the result of the SISP process.
Consideration for the transaction will consist of:
Cash in the amount of $1.5 million payable to Lightbox
The cancellation of the $3.0 million debt owed by Lightbox to SNDL
$3.3 million payable in common shares of SNDL at a price per share based on the 10-day VWAP of the SNDL shares on the Closing Date to be issued to Lightbox
The closing of the transaction is subject to customary closing conditions, including regulatory approvals. The transaction is anticipated to close by the end of May 2023, concurrently with the proposed restructuring of Nova Cannabis Inc. NVACF NOVC and SNDL . The addition of the four Dutch Love stores to be included in Nova Restructuring is expected to bring Nova's total store count to 123.
Benzinga's Cannabis Capital Conference Is Back
The most successful cannabis business event in the world, the Benzinga Cannabis Capital Conference, returns to Miami for its 16th edition. This is the place where DEALS GET DONE, where money is raised, M&A starts, and companies meet investors and key partners. Join us at the Fontainebleau Miami Beach Hotel in Florida on April 11-12. Don’t miss out. Secure your tickets now. Prices will surge very soon.
Photo: Benzinga edit with photos by jarmoluk and lindsayfox on Pixabay
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
BENZINGA CANNABIS CAPITAL CONFERENCE & AWARDS
The Benzinga Cannabis Awards are coming back to the September 27-28, 2023 Cannabis Capital Conference to celebrate the NEW, CREATIVE, INNOVATIVE, and OUTSTANDING companies of the cannabis industry.
- Earn global recognition for your achievements.
- Shine a spotlight on the people around you that deserve their moment.
- Celebrate with the newest, hottest and most successful in the cannabis industry.
Nominate or apply NOW and help us celebrate the people, solutions, and companies leading the way in cannabis!
Join us on September 27-28, 2023 at Chicago Marriott Downtown Magnificent Mile in Chicago, IL.