SNDL to acquire 4 cannabis retail stores from Lightbox in C$7.8M deal
GoodLifeStudio
- SNDL (NASDAQ:SNDL) is acquiring four cannabis retail stores operating under the Dutch Love Cannabis banner from Lightbox Enterprises.
- Under the agreement, SNDL will acquire the rights to four Dutch Love stores and the rights to use certain Dutch Love related intellectual property for C$7.8M.
- The consideration consists of SNDL paying C$1.5M in cash to Lightbox, canceling of C$3M debt owed by Lightbox to SNDL. In addition, SNDL will issue C$3.3M worth of its shares to Lightbox.
- In December 2022, a Canadian court approved the sale and investment solicitation process (SISP) in respect of the assets of Lightbox. The SNDL agreement is the result of the SISP process, the company added.
- SNDL will buy the rights to three Dutch Love stores in British Columbia and one store in Ontario. The combined assets generated C$11.5M in revenue in 2022.
- The company expects the acquisition to solidify its position as a multi-banner cannabis retail operator get exposure to a broader consumer base in two key markets.
- The transaction is expected to be completed by the end of May.
- SNDL -0.97% to $1.53 premarket March 28