Nova Cannabis shareholders vote in favour of partnership with SNDL
by CM Staff
More than 99% of votes cast by the Disinterested Shareholders at the Nova annual and special meeting of shareholders held on May 5, 2023, were in favour of the Transaction Resolution.
CALGARY — SNDL Inc. announces that the shareholders of Nova Cannabis Inc. have approved a resolution in respect of the proposed transaction between SNDL and Nova to create a well-capitalized cannabis retail platform in Canada, as contemplated by the implementation agreement entered into between the Company and Nova. More than 99% of votes cast by the Disinterested Shareholders at the Nova annual and special meeting of shareholders held on May 5, 2023, were in favour of the Transaction Resolution.
“The transaction with Nova enables SNDL to evolve in a very immature sector by becoming a trusted partner and an essential part of the Canadian cannabis ecosystem,” said Zach George, Chief Executive Officer of SNDL. “This strategic partnership will transition SNDL to the role of sponsor, licensor, and advisor in the cannabis retail market. Through a distribution of Nova common shares to SNDL shareholders, we will reduce our ownership stake in Nova to less than 20% and manage brand standards via strategic agreements and contracts in exchange for receiving a licensing fee against gross profit, and a services fee in return for the provision of management and administrative services, including financial reporting, business technology, and regulatory support. The strategic partnership between Nova and SNDL is expected to deliver growth opportunities and long-term shareholder value, cementing the two companies’ positions in the Canadian cannabis industry.”
As part of the closing of the Transaction, SNDL plans to reduce its equity ownership in Nova by completing a distribution of Nova common shares held by it to shareholders of SNDL, following which it is anticipated that SNDL and its subsidiaries will collectively own no more than 19.9% of the issued and outstanding common shares in the capital of Nova. SNDL intends to amend the plan of arrangement contemplating the Share Distribution that was approved by SNDL’s shareholders at the annual and special meeting of its shareholders held on July 25, 2022 in order to ensure that the SNDL shareholders receive meaningful value as part of the Share Distribution.
