Press release
Sundial Growers to Acquire Alcanna Inc.
CALGARY, AB, Oct. 7, 2021 /PRNewswire/ - Sundial Growers Inc. (NASDAQ: SNDL) ("Sundial" or the "Company") is pleased to announce today that it has entered
About this update from Sndl Inc.
[{"type":"text","content":"CALGARY, AB, Oct. 7, 2021 /PRNewswire/ - Sundial Growers Inc. (NASDAQ: SNDL) (\"Sundial\" or the \"Company\") is pleased to announce today that it has entered into an arrangement agreement (the \"Agreement\") with Alcanna Inc. (TSX: CLIQ) (\"Alcanna\") pursuant to which Sundial will acquire all of the issued and outstanding common shares of Alcanna (\"Alcanna Shares\") by way of a statutory plan of arrangement for total consideration of approximately $346 million (the \"Transaction\"). For more information on the announcement, a presentation deck can be found here.\n\n \n \n \n \n \n \n\n \nWith over 25 years of experience in retailing regulated products, Alcanna is Canada's largest private liquor retailer, operating 171 locations predominantly in Alberta under its three retail brands \"Wine and Beyond\", \"Liquor Depot\" and \"Ace Liquor\". Alcanna's strategic partner, in which it holds an approximately 63% equity interest, Nova Cannabis Inc. (TSX: NOVC) (\"Nova\"), is one of Canada's largest cannabis retailers offering a wide range of high-quality cannabis products at value prices. Nova currently operates 62 stores across Alberta, Saskatchewan and Ontario primarily under the \"Value Buds\" and \"Nova Cannabis\" banners.\nKEY TRANSACTION HIGHLIGHTS\nImproved cash flow profile with expansion into liquor: Alcanna's longstanding liquor business provides Sundial with stable cash generation through a mature and proven business model with trailing twelve months free cash flow of $16.4 million on a built-out retail platform. Enhanced exposure with investment in Nova, a publicly listed, pure-play cannabis retail operator: Sundial's current retail network combined with Nova's store count implies that the combined company will be a Canadian cannabis retail market leader with more than 170 locations. This network strengthens Sundial's position as a partner to the industry and represents a critical route to market for Canadian licensed producers. Synergies from a larger retail operation: The robust corporate support function at Alcanna is expected to supplement Sundial's Spiritleaf retail operations. It is estimated that the transaction will deliver more than $15 million of additional EBITDA on an annual run-rate basis through synergies and other strategic initiatives. Alcanna shareholders to participate in and help create the future of Su...