SNDL Successfully Completes Privatization of Nova and Welcomes New Director
SNDL Inc. has successfully completed the privatization of Nova Cannabis Inc., acquiring the remaining 34.8% of Nova shares not already owned by SNDL. The arrangement, approved by Nova shareholders and the Court of King's Bench of Alberta, offers $1.75 in cash or 0.58 SNDL shares for each Nova share, subject to proration. This represents a 41.2% premium to Nova's 20-day volume-weighted average trading price.
The transaction is expected to streamline SNDL's cannabis retail operations and generate savings by eliminating public company expenses. Nova shares will be delisted from the TSX and OTC Markets, and Nova intends to cease being a reporting issuer in Canada. SNDL plans to appoint J. Carlo Cannell to its board of directors in connection with the arrangement.
SNDL Inc. ha completato con successo la privatizzazione di Nova Cannabis Inc., acquisendo il restante 34,8% delle azioni di Nova non già possedute da SNDL. L'accordo, approvato dagli azionisti di Nova e dalla Corte del King's Bench dell'Alberta, offre 1,75 USD in contanti o 0,58 azioni SNDL per ciascuna azione Nova, soggetto a prorroga. Questo rappresenta un premium del 41,2% rispetto al prezzo medio ponderato per volume delle ultime 20 giornate di trattativa di Nova.
Si prevede che la transazione semplifichi le operazioni di vendita al dettaglio di cannabis di SNDL e generi risparmi eliminando le spese legate alla società pubblica. Le azioni di Nova saranno ritirate dalla TSX e dai mercati OTC, e Nova intende smettere di essere un emittente riportante in Canada. SNDL prevede di nominare J. Carlo Cannell al suo consiglio di amministrazione in relazione all'accordo.
SNDL Inc. ha completado con éxito la privatización de Nova Cannabis Inc., adquiriendo el 34,8% restante de las acciones de Nova que no poseía SNDL. El acuerdo, aprobado por los accionistas de Nova y por la Corte del King's Bench de Alberta, ofrece 1,75 USD en efectivo o 0,58 acciones de SNDL por cada acción de Nova, sujeto a prorrateo. Esto representa una prima del 41,2% sobre el precio de negociación promedio ponderado por volumen de 20 días de Nova.
Se espera que la transacción agilice las operaciones minoristas de cannabis de SNDL y genere ahorros al eliminar los gastos de la empresa pública. Las acciones de Nova serán deslistadas de la TSX y de los mercados OTC, y Nova tiene la intención de dejar de ser un emisor reportante en Canadá. SNDL planea nombrar a J. Carlo Cannell en su consejo de administración en relación con el acuerdo.
SNDL Inc.는 Nova Cannabis Inc.의 민영화를 성공적으로 완료하고, SNDL이 이미 소유하고 있지 않은 Nova의 나머지 34.8%의 주식을 인수했습니다. 이 합의는 Nova 주주와 앨버타의 왕의 법원에 의해 승인되었으며, 1.75 달러 현금 또는 0.58 SNDL 주식을 Nova 주식 하나에 제공하며, 비율에 따라 조정됩니다. 이는 Nova의 20일간 거래량 가중 평균 가격에 41.2%의 프리미엄을 나타냅니다.
이 거래는 SNDL의 대마초 소매 운영을 간소화하고 비용 절감을 생성할 것으로 예상됩니다. Nova의 주식은 TSX와 OTC 시장에서 상장 폐지되며, Nova는 캐나다에서 보고하는 발행자가 되는 것을 중단할 계획입니다. SNDL은 이 합의와 관련하여 J. Carlo Cannell을 이사회에 임명할 계획입니다.
SNDL Inc. a réussi à privatiser Nova Cannabis Inc. en acquérant les 34,8% restants des actions de Nova déjà non détenues par SNDL. L'arrangement, approuvé par les actionnaires de Nova et la Cour du King's Bench de l'Alberta, propose 1,75 $ en espèces ou 0,58 actions de SNDL pour chaque action Nova, sous réserve d'un prorata. Cela représente une prime de 41,2% par rapport au prix moyen pondéré par volume des 20 derniers jours de Nova.
La transaction devrait rationaliser les opérations de vente au détail de cannabis de SNDL et générer des économies en éliminant les frais liés à une société publique. Les actions de Nova seront retirées de la TSX et des marchés OTC, et Nova prévoit de cesser d'être un émetteur de rapports au Canada. SNDL prévoit de nommer J. Carlo Cannell à son conseil d'administration en lien avec l'arrangement.
SNDL Inc. hat die Privatisierung von Nova Cannabis Inc. erfolgreich abgeschlossen und die verbleibenden 34,8% der Aktien von Nova übernommen, die noch nicht im Besitz von SNDL waren. Die Vereinbarung, die von den Aktionären von Nova und dem Court of King's Bench von Alberta genehmigt wurde, bietet 1,75 USD in bar oder 0,58 SNDL-Aktien für jede Nova-Aktie, vorbehaltlich einer Proration. Dies stellt eine 41,2%ige Prämie auf den 20-tägigen volumenweighted Durchschnittspreis von Nova dar.
Es wird erwartet, dass die Transaktion SNDLs Einzelhandelsgeschäft mit Cannabis optimiert und Einsparungen generiert, indem die Kosten eines öffentlichen Unternehmens eliminiert werden. Die Aktien von Nova werden von der TSX und den OTC-Märkten delistet und Nova beabsichtigt, die Berichterstattung als Emittent in Kanada einzustellen. SNDL plant, J. Carlo Cannell in Verbindung mit der Vereinbarung in seinen Vorstand zu berufen.
- Acquisition of remaining 34.8% of Nova shares streamlines SNDL's cannabis retail operations
- Expected material savings from eliminating public company expenses
- 41.2% premium offered to Nova shareholders
- Debt-free and cash-rich balance sheet positions SNDL for continued expansion
- Transaction structured to minimize share dilution
- Cash outlay of $37,283,790.25 for the acquisition
- Issuance of 159,792 new SNDL shares, potentially diluting existing shareholders
Pursuant to the Arrangement, each Nova Shareholder (other than SNDL and its affiliates that hold Nova Shares) will receive
"The acquisition of Nova's remaining minority interest represents a significant milestone that will streamline SNDL's cannabis retail operations and generate material savings by eliminating public company expenses," said Zachary George, SNDL's Chief Executive Officer. "With a debt-free and cash-rich balance sheet we are well-positioned to drive the continued expansion of our Canadian cannabis retail platform. We intentionally and successfully structured this transaction to incentivize shareholders to opt for cash, which further underscores our focus on accretive growth, allowing us to efficiently deploy capital without significant share dilution."
The Nova Shares are expected to be delisted from the TSX and the OTC Markets. Following the delisting of the Nova Shares, Nova intends to submit an application to cease to be a reporting issuer in each applicable jurisdiction of
Registered holders of Nova Shares are reminded that they must send their completed and executed letter of transmittal and election form and related share certificates or DRS advices, if any, to the depository for the Arrangement, Odyssey Trust Company, as soon as possible in order to receive the Consideration to which they are entitled under the Arrangement.
DIRECTOR APPOINTMENT
In connection with the Arrangement, SNDL intends to appoint to its board of directors J. Carlo Cannell, 61, a leading practitioner of special situations since the formation of Cannell Capital in 1992.
EARLY WARNING REPORTING
Immediately prior to the effective date of the Arrangement, SNDL and its subsidiaries owned an aggregate of 40,501,641 Nova Shares, representing approximately
An early warning report will be filed on SEDAR+ at www.sedarplus.ca under Nova's profile. In order to obtain a copy of the early warning report, please contact Matthew Husson at legal@sndl.com.
ADVISORS
McCarthy Tétrault LLP has acted as legal counsel to SNDL.
Eight Capital has acted as financial advisor and Bennett Jones LLP has acted as legal counsel to Nova.
ABOUT SNDL INC.
SNDL is a public company whose shares are traded on the Nasdaq under the symbol "SNDL". SNDL is the largest private-sector liquor and cannabis retailer in
For more information on SNDL, please go to www.sndl.com.
ABOUT NOVA CANNABIS INC.
Nova is one of
The head office of Nova Cannabis is located at 101, 17220 Stony Plain Rd. NW,
Forward-Looking Information Cautionary Statement
This news release contains statements and information that, to the extent that they are not historical fact, may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable securities legislation ("forward-looking information"). Forward-looking information is typically, but not always, identified by the use of words such as "will", "expected", "projected", "to be" and similar words, including negatives thereof, or other similar expressions concerning matters that are not historical facts. Forward-looking information in this news release includes, but is not limited to, statements regarding; the combined company and its focus going forward; the anticipated delisting of the Nova Shares from the TSX and OTC Markets (including the timing thereof); Nova's application to cease to be a reporting issuer (including the timing thereof); the anticipated amalgamation of SNDL and Nova (including the timing thereof); and the anticipated benefits associated with the Arrangement, including any anticipated financial benefits and growth opportunities. Such forward-looking information is based on various assumptions and factors that may prove to be incorrect, including, but not limited to, factors and assumptions with respect to; the anticipated benefits of the Arrangement; the business and operations of both SNDL and Nova, including that each business will continue to operate in a manner consistent with past practice and pursuant to certain industry and market conditions; and the ability of SNDL to successfully implement its strategic plans and initiatives and whether such strategic plans and initiatives will yield the expected benefits. Although SNDL and Nova believe that the assumptions and factors on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because SNDL and Nova can give no assurance that it will prove to be correct or that any of the events anticipated by such forward-looking information will transpire or occur, or if any of them do so, what benefits SNDL and/or Nova will derive therefrom. Actual results could differ materially from those currently anticipated due to a number of factors and risks including, but not limited to: that the benefits or the Arrangement will not be as anticipated; risks associated with general economic conditions; adverse industry events; future legislative, tax and regulatory developments; conditions in the liquor and cannabis industries; the risk that Nova is not able to open additional retail liquor or cannabis stores, directly or indirectly, as anticipated or at all; the ability of management to execute its business strategy, objectives and plans; and the availability of capital to fund the build-out and opening of additional retail liquor or cannabis stores.
Readers, therefore, should not place undue reliance on any such forward-looking information. Further, this forward-looking information is given as of the date of this press release and, except as expressly required by applicable law, SNDL and Nova disclaim any intention and undertake no obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable Canadian securities laws. All of the forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements.
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SOURCE SNDL Inc.
FAQ
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