SNDL said its deal to acquire the remaining 1CM Ontario retail locations is not expected to proceed following a prolonged regulatory review process that "extended beyond commercially reasonable timelines contemplated by the parties."
The original deal was to acquire 32 cannabis retail stores operating under the Cost Cannabis and T Cannabis banners in Ontario, Alberta and Saskatchewan for a purchase price of $32.2 million in cash. The second and final closing would have involved SNDL's acquisition of 27 cannabis retail stores in Ontario, operating under the Cost Cannabis and T Cannabis banners, for a purchase price of $27.2 million.
But the company said he provincial regulatory approvals required in Ontario to complete the second closing will not likely be obtained prior to the outside date of May 31, 2026.
As previously announced on January 7, 2026, SNDL completed the first closing and acquired five cannabis retail stores.
Now, SNDL intends to reallocate the capital previously reserved for the Ontario acquisition toward share repurchases. Under its current program, SNDL has repurchased more than 5.5 million shares since March 31, 2026, valued at approximately $11.1 million.
"While we were unable to complete the Ontario portion of the transaction, we remain confident in the strength of our retail platform and our ability to deploy capital in ways that generate long-term shareholder value. The continued repurchase of shares reflects a disciplined approach to capital allocation given SNDL’s current valuation," said SNDL CEO Zach George in a statement.
