SNDL to acquire Nova Cannabis in $40 million deal

CALGARY — SNDL and Nova Cannabis enters an arrangement agreement for SNDL to acquire all Nova Shares not already owned by SNDL, representing about 34.8 per cent of Nova Shares, for approximately $40 million.

“Today’s announcement by our Alberta-based corporations underscores our commitment to sustainable performance in Canadian cannabis,” said Zach George, SNDL’s CEO. “We are committed to building a consumer-centric model at scale, supported by SNDL’s robust shared service model, access to capital, and a well-developed cannabis retail pipeline. These factors are integral to the achievement of sustained profitable growth.”

Under the terms of the agreement, Nova’s shareholders will receive $1.75 in cash for each Nova Share, representing a premium of 41.2 per cent to the 20-day VWAP of Nova Shares on the Toronto Stock Exchange as of the market close on August 12, 2024.

The transaction requires approval from at least two-thirds of Nova shareholders, including the majority of disinterested shareholders, and court approval from the Court of King’s Bench of Alberta.

The transaction has been approved by the boards of directors of both SNDL and Nova and is expected to close on or before October 18, 2024. Following the closing of the Transaction, the Nova Shares are expected to be delisted from the TSX and Nova will apply to cease to be a reporting issuer in all provinces and territories of Canada.