SNDL and Nova Cannabis have entered into an arrangement agreement where SNDL will acquire all Nova common shares it doesn't already own, representing approximately 34.8% of Nova Shares, for approximately CAD$40 million.
Nova's retail expertise will support SNDL's entire cannabis retail portfolio to enhance programming, expand data programs, advance staff training initiatives, and optimize inventory management. The transaction is anticipated to generate savings through the streamlining of public company expenses and the optimization of general and administrative costs.
Under the terms of the agreement, Nova's shareholders will receive $1.75 in cash for each Nova Share, representing a premium of 41.2% to the 20-day VWAP of Nova Shares on the Toronto Stock Exchange as of market close on August 12, 2024.
Nova shareholders also have the ability to elect to receive 0.58 of a common share of SNDL for each Nova Share.
The transaction has been approved by the boards of directors of both SNDL and Nova and is expected to close on or before October 18, 2024.
