SNDL said its stalking horse bid has been chosen as the successful bid in the acquisition of the Indiva business and assets, subject to approval by the Ontario Superior Court of Justice overseeing the CCAA proceedings.
SNDL's acquisition includes Indiva's facility in London, Ontario and a portfolio of owned and licensed brands including Pearls by Grön, No Future, Wana, and Bhang Chocolate. The transaction is expected to enhance SNDL's product offerings and further solidify SNDL's position in the Canadian cannabis market.
"We are thrilled by the opportunity to partner with our colleagues at Indiva to deliver high quality products and brands to consumers," said Zach George, SNDL's Chief Executive Officer. "This transaction will materially improve our market share in the edibles category and is expected to unlock value through improved capacity utilization, a reduction in aggregate corporate expenses, and the potential sale of redundant real estate holdings."
Indiva is a producer of cannabis edibles in Canada and with a portfolio of seven brands and 53 listed SKUs, all manufactured in the company's 40,000-square-foot production facility on Hargrieve Road in south London, Ontario.
Indiva will seek approval for the transaction from the court on or about September 19, 2024. The transaction is subject to, among other things, the court granting an approval and vesting order and the transaction receiving the approval of other regulatory authorities. The transaction is anticipated to close during SNDL's fourth quarter following the receipt of all such approvals.
