SNDL Inc. SNDL and Nova Cannabis Inc. NVACF, two of Canada’s largest cannabis companies, have announced a strategic realignment of their retail operations. The agreement sees SNDL assigning the rights to four Dutch Love cannabis retail stores to Nova Cannabis.
Strategic Assignment And Financial Enhancements
The transaction will see Nova issuing SNDL CA$8.179 million ($6.03 million) in shares, calculated on a 20-day VWAP as of March 28, 2024. Subject to regulatory, court, and Toronto Stock Exchange approvals, this deal is poised for completion by April’s end. This acquisition is expected to elevate Nova’s total store count to 100, while SNDL’s reaches a substantial 190 across various brands.
Top executives from leading cannabis operators are slated to share valuable insights at the upcoming Benzinga Cannabis Capital Conference in Florida on April 16-17. The two-day event that returns to The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow.
CEO's Comments
Zach George, CEO of SNDL, said on a press release “SNDL remains committed to strengthening Nova’s retail position and the sustainability of its capital structure, as underscored by the extension of the credit facility.”
“The assignment of four well-located cannabis retail stores to be owned or operated by Nova creates an opportunity for Nova to open its first Value Buds branded locations in British Columbia and highlights the benefit of SNDL’s M&A pipeline,” George added.
Credit Facility Extension
Further cementing their partnership, SNDL has extended the maturity of a $15 million ($11 million) revolving credit facility with Nova by two years, until March 31, 2026. This amendment provides Nova with enhanced financial flexibility and removes SNDL’s right to demand early repayment under specific conditions, showcasing SNDL’s trust in Nova’s potential.
“The updates announced further solidify SNDL’s continued support of Nova’s growth trajectory,” said Anne Fitzgerald, lead independent director of Nova. “We will continue to collaboratively pursue avenues that support Nova’s expansion and optionality with our partners at SNDL.”
Legal advisories for this transaction include McCarthy Tétrault LLP for SNDL and Bennett Jones LLP for Nova.
SNDL And NVACF Price Action
At the time of this writing around 4 PM ET Wednesday, SNDL's shares were trading 19.61% higher at $2.44 per share, and NVACF's shares were trading 5.53% higher at $1.393 per share.
There’s no better time to dive deeper into the ever-changing landscape of cannabis investing. Join us at the upcoming Benzinga Cannabis Capital Conference in Florida at the new Hollywood venue on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn, and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world. Get your tickets now on bzcannabis.com – Prices will increase very soon!
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The Benzinga Cannabis Capital Conference is coming to Florida
The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.
Get your tickets now on bzcannabis.com – Prices will increase very soon!