SNDL Buys Indiva Assets

SNDL Emerges as Canada’s Leading Producer of Edibles with Indiva Acquisition

CALGARY, AB, Nov. 4, 2024 /CNW/ – SNDL Inc. (Nasdaq: SNDL) (“SNDL” or the “Company”) announced today that, in the context of Indiva Limited’ss(“Indiva” and together with its subsidiaries and affiliates, the “Indiva Group”) proceedings under the Companies’ Creditors Arrangement Act (Canada) (the “CCAA Proceedings”), it has successfully closed its acquisition of the Indiva Group’s business and assets (the “Transaction”), pursuant to an approval and reverse vesting order granted by the Ontario Superior Court of Justice (Commercial List) (the “Court”). The consideration paid by SNDL as part of the Transaction was comprised of a credit bid of all of the indebtedness of the Indiva Group owing to SNDL, the retention of certain liabilities of the Indiva Group, and cash payments sufficient to repay certain priority indebtedness of the Indiva Group and costs associated with the CCAA Proceedings. The estimated value of the consideration is $22.7 million.

“This acquisition reinforces SNDL’s standing as a premier producer of cannabis products in Canada,” said Zach George, Chief Executive Officer of SNDL. “By integrating Indiva’s high-quality brands and production expertise into SNDL, we’re broadening our product portfolio and solidifying our leadership in the infused edibles category.”

The Transaction includes Indiva’s 40,000-square-foot production facility in London, Ontario, and a diverse brand portfolio featuring market leaders like Pearls by Grön, No Future, and Bhang Chocolate. With a portfolio spanning seven brands and fifty-three SKUs, Indiva is a recognized leader in cannabis edibles production and the Transaction is set to reinforce SNDL’s role in meeting evolving consumer demands across Canada.

Advisors

McCarthy Tétrault LLP acted as legal counsel to SNDL. Bennett Jones LLP acted as legal counsel to the Indiva Group. PricewaterhouseCoopers Inc. acted as the Court-appointed Monitor of the Indiva Group with respect to the CCAA Proceedings and was represented by Osler, Hoskin & Harcourt LLP.

About SNDL Inc.

SNDL is a public company whose shares are traded on the Nasdaq under the symbol “SNDL”. SNDL is the largest private-sector liquor and cannabis retailer in Canada with retail banners that include Ace Liquor, Wine and Beyond, Liquor Depot, Value Buds, Spiritleaf, and Firesale Cannabis. SNDL is a licensed cannabis producer and one of the largest vertically integrated cannabis companies in Canada specializing in low-cost biomass sourcing, premium indoor cultivation, product innovation, low-cost manufacturing facilities, and a cannabis brand portfolio that includes Top Leaf, Contraband, Palmetto, Bon Jak, Versus, Value Buds, and Vacay. SNDL’s investment portfolio seeks to deploy strategic capital through direct and indirect investments and partnerships throughout the North American cannabis industry. For more information on SNDL, please go to www.sndl.com.

Original press release

Published by NCV Newswire

The NCV Newswire by New Cannabis Ventures aims to curate high quality content and information about leading cannabis companies to help our readers filter out the noise and to stay on top of the most important cannabis business news. The NCV Newswire is hand-curated by an editor and not automated in anyway. Have a confidential news tip? Get in touch.