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SNDL provides low-cost indoor cultivation with worldwide export capabilities
CALGARY, AB, Nov. 1, 2022 /PRNewswire/ – SNDL Inc. (Nasdaq: SNDL) (“SNDL” or the “Firm“) introduced right this moment that, within the context of proceedings pursuant to the Zenabis Group’s (as outlined beneath) submitting beneath the Firms’ Collectors Association Act (Canada) (the “CCAA“), it has efficiently closed its acquisition of the Zenabis Enterprise (as outlined beneath), pursuant to an approval order of the Québec Superior Court docket (the “Court docket“).
“In preparation for the exit of Zenabis from the CCAA course of, our operational groups have been working carefully with Zenabis’ Monitor and management as we plan to combine our two companies,” mentioned Zach George, SNDL’s Chief Govt Officer. “Because of the transaction, SNDL will purchase an indoor cultivation facility with appreciable capabilities and confirmed outcomes, important monetizable hashish stock, and beneficial non-core actual property property. We stay up for partnering with our colleagues at Zenabis to make the most of the alternatives this acquisition provides.”
The Zenabis Enterprise’ core asset is the 380,000-square-foot indoor rising facility in Atholville, New Brunswick, which has an annual manufacturing capability of roughly 46,000 kilograms of dried hashish and 15,000 kilograms of extraction capability. The power beforehand acquired EU GMP certification and has exported hashish shipments to Malta, Israel and Australia. SNDL accomplished its first worldwide cargo of dried hashish flower in August of 2022, and because the Firm works to increase its worldwide export enterprise, the Atholville facility and Zenabis Enterprise’ buyer relationships are beneficial property.
The Firm acquired greater than 22 million grams of hashish stock, which is able to cut back near-term cultivation necessities and is anticipated to be monetized via wholesale transactions, worldwide export, and branded product gross sales, partially via SNDL’s community of 185 retail shops. The Zenabis Enterprise’ non-core property embody a 255,000-square-foot industrial facility in Stellarton, Nova Scotia, which is beneath non-binding discussions on the market by SNDL. Sure mental property rights for the Zenabis manufacturers and hashish strains have been additionally acquired.
The order of the Court docket authorized the acquisition by a wholly-owned subsidiary of SNDL of all issued and excellent shares of Zenabis Ltd., a company ensuing from the amalgamation of choose Zenabis entities (collectively, the “Zenabis Group”), as a part of the consideration for the senior secured debt of the Zenabis Group as a result of SNDL subsidiary. Zenabis Ltd. owns all the property of the enterprise of the Zenabis Group (the “Zenabis Enterprise”) topic to sure exclusions, free and away from any encumbrances besides sure permitted encumbrances (specifically the safety of the wholly-owned subsidiary of SNDL, which was preserved).
Advisors
McCarthy Tétrault LLP acted as authorized counsel to SNDL. Ernst & Younger Inc. acted because the Monitor of the Zenabis Group with respect to the CCAA Proceedings and was represented by Osler, Hoskin & Harcourt LLP.
About SNDL Inc.
SNDL is a public firm whose shares are traded on Nasdaq beneath the image “SNDL.”
SNDL is the most important non-public sector liquor and hashish retailer in Canada with retail banners that embody Ace Liquor, Wine and Past, Liquor Depot, Worth Buds, and Spiritleaf. SNDL is a licensed hashish producer that makes use of state-of-the-art indoor amenities to provide wholesale and retail prospects beneath a hashish model portfolio that features Prime Leaf, Sundial Hashish, Palmetto, Spiritleaf Selects, and Grasslands. SNDL’s funding portfolio seeks to deploy strategic capital via direct and oblique investments and partnerships all through the worldwide hashish trade.
For extra info on SNDL, please go to https://www.sndl.com/.
Ahead-Wanting Assertion
This information launch consists of statements containing sure “forward-looking info” inside the that means of relevant securities legislation (“forward-looking statements”). Ahead-looking statements on this launch consists of, however is just not restricted to, annual manufacturing and the potential enlargement plans of the Firm in Canada and internationally, the Firm’s capacity to supply uninterrupted provide to its buyer, and statements relating to the long run efficiency of the Firm. Ahead-looking statements are ceaselessly characterised by phrases similar to “plan”, “proceed”, “anticipate”, “mission”, “intend”, “consider”, “anticipate”, “estimate”, “could”, “will”, “potential”, “proposed” and different comparable phrases, or statements that sure occasions or circumstances “could” or “will” happen. These statements are solely predictions. Numerous assumptions have been utilized in drawing the conclusions or making the projections contained within the forward-looking statements all through this information launch. Ahead-looking statements are based mostly on the opinions and estimates of administration on the date the statements are made, and are topic to a wide range of dangers and uncertainties and different components that would trigger precise occasions or outcomes to vary materially from these projected within the forward-looking statements. The Firm is beneath no obligation, and expressly disclaims any intention or obligation, to replace or revise any forward-looking statements, whether or not because of new info, future occasions or in any other case, besides as expressly required by relevant legislation.
SOURCE Sundial Growers Inc.
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