Press release
Sundial Growers Completes Acquisition of Alcanna
Sundial is now the largest private sector cannabis and liquor retailer in Canada CALGARY, AB, March 31, 2022 /PRNewswire/ - Sundial Growers Inc. (Nasdaq:
About this update from Sndl Inc.
[{"type":"text","content":"Sundial is now the largest private sector cannabis and liquor retailer in Canada \nCALGARY, AB, March 31, 2022 /PRNewswire/ - Sundial Growers Inc. (Nasdaq: SNDL) (\"Sundial\" or the \"Company\") is pleased to announce the completion of the previously disclosed acquisition of all of the issued and outstanding common shares (\"Alcanna Shares\") of Alcanna Inc. (TSX: CLIQ) (\"Alcanna\") pursuant to a plan of arrangement, for total consideration of approximately $320 million consisting of cash and common shares of Sundial (\"Sundial Shares\" and such acquisition, the \"Transaction\"). \n\n \n \n \n \n \n \n\n \nPursuant to the Transaction, former holders of Alcanna Shares (\"Alcanna Shareholders\") are entitled to receive (i) 8.85 Sundial Shares and (ii) $1.50 in cash for each Alcanna Share (collectively, the \"Consideration\"). Following the Transaction, there are approximately 2.4 billion Sundial Shares outstanding with existing Sundial shareholders holding approximately 86.6% of such Sundial Shares and former Alcanna Shareholders holding approximately 13.4% of such Sundial Shares.\nAlcanna is one of the largest private-sector retailers of alcohol in North America and the largest in Canada by number of stores – operating locations in Alberta and British Columbia. Alcanna's majority-owned subsidiary, Nova Cannabis Inc. (TSX: NOVC) (\"Nova\"), also owns or operates a total of 78 cannabis retail stores in Alberta, Saskatchewan and Ontario.\nTransaction Highlights:Improved cash flow profile with expansion into liquor retail: As a result of the Transaction, Sundial has become Canada's largest private sector liquor retailer, operating 171 locations predominantly in Alberta under its three retail banners \"Wine and Beyond\", \"Liquor Depot\" and \"Ace Liquor\". The Company's management believes that the liquor segment will add sustainable cash flow from operations and stable adjusted EBITDA[1] generation to Sundial's business. Alcanna's established liquor segment generated cash provided by operating activities before working capital changes of $25.0 million, which net of cash used by cannabis operations of $6.7 million resulted in a consolidated total of $18.3 million for the twelve months ended December 31, 2021.Improved revenue profile with the largest private cannabis retail network in Canada: Nova, Alcanna's majority-owned subsidiary...