SNDL adds low-cost indoor cultivation with international export capabilities
Calgary, AB, November 1 January 2022 /PRNewswire/ — SNDL Inc. (NASDAQ: SNDL) (“SNDL“or”company“) announced today that, in accordance with the Zenabis Group (as defined below) under the Companies Creditors Arrangements Act (Canada) (This”CCAA”), according to the High Court of Quebec (“court”).
“In preparation for Zenabis’ exit from the CCAA process, our operations team has been working closely with Zenabis’ Monitor and leadership as we plan to integrate our two businesses,” said Zach George, CEO of SNDL. “As a result of the transaction, SNDL will acquire an indoor cultivation facility with considerable capacity and proven outcomes, a substantial monetizable cannabis inventory, and valuable non-core real estate assets. We look forward to working with our colleagues at Zenabis , to take advantage of the opportunities provided by this acquisition.”
The core asset of Zenabis Business is a 380,000 sq. ft. indoor grow facility Atholville, New Brunswick, with an annual output of about 46,000 kilograms of dry cannabis and an extraction capacity of 15,000 kilograms.The facility was previously EU GMP certified and has exported cannabis shipments to Malta, Israel and Australia. SNDL completed its first international shipment of dried cannabis flower in August 2022, as the company works to expand its international export operations, atsolville Facilities and Zenabis Business’ customer relationships are valuable assets.
The company acquired more than 22 million grams of cannabis stock, which will reduce near-term cultivation demand and is expected to be monetized through wholesale transactions, international exports and branded product sales through SNDL’s network of 185 retail stores. Zenabis Business’ non-core assets include a 255,000 sq. ft. industrial facility located in Stratton, Nova Scotia, which is in non-binding sale discussions by SNDL. Certain intellectual property rights for the Zenabis brand and cannabis varieties were also acquired.
Court Order Approves SNDL’s Wholly Owned Subsidiary’s Acquisition of All Issued and Outstanding Shares of Zenabis Ltd., a Company Created by Merger of Select Zenabis Entities (collectively “Zenabis Group”), as Zenabis Group’s Account Payable to SNDL Subsidiary The consideration for the senior secured debt. Zenabis Limited owns all assets of the Zenabis Group business (“Zenabis Business”), subject to certain exceptions, other than certain permitted encumbrances (i.e. the security of SNDL’s wholly owned subsidiaries, which title is retained), without any encumbrances).
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McCarthy Tétrault LLP acted as legal counsel to SNDL.Ernst & Young serves as Zenabis Group’s supervisor in relation to CCAA litigation and is represented by OslerHoskin & Harcourt LLP.
About SNDL Inc.
SNDL is a public company whose shares are traded on the Nasdaq under the symbol “SNDL”.
SNDL is the largest privately held liquor and cannabis retailer in the U.S. Canada Retail banners include Ace Liquor, Wine and Beyond, Liquor Depot, Value Buds and Spiritleaf. SNDL is a licensed cannabis producer using a state-of-the-art in-house facility to serve wholesale and retail clients to a portfolio of cannabis brands, including Top Leaf, Sundial Cannabis, Palmetto, Spiritleaf Selects and Grasslands. SNDL’s portfolio is designed to deploy strategic capital through direct and indirect investments and partnerships in the global cannabis industry.
For more information on SNDL, visit https://www.sndl.com/.
Forward-Looking Statements
This press release includes statements containing certain “forward-looking information” within the meaning of applicable securities laws (“forward-looking statements”).Forward-looking statements in this press release include, but are not limited to, the company’s Canada Internationally, the company provides customers with the ability to provide uninterrupted supply, as well as a statement about the company’s future performance. Forward-looking statements are often characterized by words such as “plan,” “continue,” “anticipate,” “project,” “intend,” “believe,” “anticipate,” “estimate,” “may,” “will,” etc. “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Throughout this press release, various assumptions have been used in arriving at the conclusions or making the projections contained in the forward-looking statements. Forward-looking statements are based on management’s opinions and estimates as of the date they are made and are subject to various risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Except as expressly required by applicable law, the company disclaims and expressly disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Sundial Growers Inc.
