Press release
Delta 9 Announces Closing of Transformative Retail Acquisition, $32 Million Credit Facilities and $10 Million Strategic Financing
Closing of Transformative 17 Store retail acquisition securing position as one of Canada’s leading retailersClosing of $32 Million Non-Dilutive Credit
About this update from Sndl Inc.
[{"type":"text","content":"Closing of Transformative 17 Store retail acquisition securing position as one of Canada’s leading retailersClosing of $32 Million Non-Dilutive Credit FacilitiesPrivate Placement from Sundial Growers Inc. of $10 Million in senior secured second-lien convertible debentures WINNIPEG, Manitoba, March 31, 2022 (GLOBE NEWSWIRE) -- Delta 9 Cannabis Inc. (TSX: DN) (OTCQX: DLTNF) (\"Delta 9\" or “The Company”) is pleased to announce that it has closed a transaction with Uncle Sam’s Cannabis Ltd. (“Uncle Sam”) and Wissam El Annan to acquire all or substantially all of Uncle Sam’s assets relating to the operation of seventeen retail cannabis stores in Alberta (the “Uncle Sam Transaction”). The Company will also be closing it’s previously announced $32 million in credit facilities (the “Credit Facilities”) from Connect First Credit Union Ltd. (“connectFirst”). To provide additional funding, the Company will also complete a private placement of $10,000,000 in principal amount of senior secured second-lien convertible debentures (the “Sundial Debenture”) by Sundial Growers Inc. (NASDAQ: SNDL) (“Sundial”). The subscription price of $9,600,000 represents an original discount of 4% (the “Offering”). The Sundial Debenture matures on March 30, 2025 (the “Maturity Date”) and bears an interest rate of 10% per annum, subject to increase on the occurrence of certain events as set forth in the Sundial Debenture, payable monthly. Additional Details of Uncle Sam Transaction: The acquisition was completed through Delta 9 Cannabis Store Inc. (“Delta 9 Cannabis Store”), a wholly-owned subsidiary of the Company, pursuant to an asset purchase agreement between Delta 9 Cannabis Store, Uncle Sam and Wissam El Annan dated November 1, 2021, as amended by a first amending agreement dated December 20, 2021, a second amending agreement dated February 16, 2022 and a third amending agreement dated March 22, 2022. The seventeen Uncle Sam stores in Alberta operate under the Uncle Sam’s Cannabis and Discounted Cannabis brands. \"We are pleased to have finalized this transaction to grow our market share in the Canadian retail cannabis market with an additional seventeen-store presence,” said John Arbuthnot, CEO of Delta 9. \"Delta 9 now has 34 retail cannabis stores in operation across Canada and is positioning as one of the countries largest vertically integrated cannab...