Press release
SNDL Completes Acquisition of The Valens Company
Creates a low-cost vertically integrated Canadian company generating over a billion dollars in annualized pro forma revenue1 CALGARY, AB, Jan. 17, 2023
About this update from Sndl Inc.
[{"type":"text","content":"Creates a low-cost vertically integrated Canadian company generating over a billion dollars in annualized pro forma revenue1\n\n \n \n \n \n \n \n\n \nCALGARY, AB, Jan. 17, 2023 /PRNewswire/ - SNDL Inc. (Nasdaq: SNDL) (\"SNDL\" the \"Company\") is pleased to announce the completion of the previously disclosed acquisition of all of the issued and outstanding common shares (\"Valens Shares\") of The Valens Company Inc. (TSX: VLNS) (Nasdaq: VLNS) (\"Valens\"), other than those held by SNDL and its subsidiaries, pursuant to a plan of arrangement under the Canada Business Corporations Act (the \"Transaction\"), for total consideration of approximately $138 million2 consisting of common shares of SNDL (\"SNDL Shares\") and assumption of Valens' $60 million non-revolving term loan facility. All financial information in this press release is reported in Canadian dollars unless otherwise indicated.\nWith approximately $262.5 million3 in net cash and no debt, SNDL will continue to have one of the strongest balance sheets in the North American cannabis industry. SNDL will also have the highest pro forma consolidated net revenue among all Canadian cannabis companies based on the last fiscal quarter of each company on an annualized basis. The combined company will operate as SNDL Inc., headquartered in Calgary, Alberta.\nKey Transaction HighlightsCreates a well-positioned vertically integrated entity in Canada that combined generates over a billion dollars in annualized revenue: Through the combination of a diverse portfolio of brands, a 180 multi-banner cannabis retail store network, low-cost biomass sourcing, premium indoor cultivation and low-cost manufacturing facilities, SNDL will become one of the largest adult-use cannabis manufacturers and retailers in Canada. The transaction is expected to accelerate the optimization and rationalization of SNDL's manufacturing and operational footprint to better address market saturation and oversupply.Enhances branded product offering with low-cost in-house manufacturing capabilities: By integrating Valens' product suite into its portfolio, SNDL will increase its overall cannabis market share to 3.8%4 from 1.0% standalone and its 2.0 product formats market share to 4.4%4 from 0.1% standalone, becoming a top 10 player in both categories. As a result of Valens' low-cost platform, SNDL will enhance it...