SNDL to Acquire Remaining Nova Cannabis Shares for $40 Million

LOS ANGELES- SNDL Inc. has announced plans to acquire the remaining 34.8% of Nova Cannabis Inc. shares that it does not already own in a deal valued at approximately C$40 million. The transaction will consolidate SNDL’s ownership of Nova, strengthening its position in Canada’s cannabis retail market.

Under the agreement, SNDL will pay C$1.75 per share, representing a 41.2% premium to Nova’s 20-day volume-weighted average price. Nova shareholders can choose either cash or 0.58 SNDL shares for each Nova share, with a maximum of 50% of the total consideration payable in SNDL shares. The deal is expected to close by October 18, pending shareholder and regulatory approvals.

SNDL’s CEO, Zach George, emphasized the benefits of the acquisition, citing SNDL’s robust balance sheet and retail pipeline as critical to supporting Nova’s operations in a competitive market. The transaction is expected to streamline expenses and optimize administrative costs, further enhancing operational efficiency.

The deal follows the termination of a planned merger between the companies in 2023, although close ties were maintained through an administrative services agreement. Once completed, Nova will be delisted from the Toronto Stock Exchange, and the company will no longer be a reporting issuer in Canada.

This acquisition aligns with SNDL’s strategy of building a consumer-centric model at scale, focused on sustainable growth in Canada’s evolving cannabis industry.