Canadian cannabis producer SNDL and retail operator Nova Cannabis are amending a previously announced deal in which SNDL will transfer stores to Nova and return shares to the retail company for cancellation, among other things.
SNDL, headquartered Calgary, Alberta, is the majority shareholder of Edmonton, Alberta-based Nova after SNDL acquired Nova’s previous parent company Alcanna.
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“Overall, the amended terms aim to increase the number of retail stores SNDL will vend into Nova Cannabis (by an additional six locations) while reconfiguring SNDL’s equity ownership in Nova,” Matt Bottomley, an analyst for Toronto-based Canaccord Genuity, wrote in a Tuesday research note summarizing the amended deal.
The multifaceted deal between SNDL, formerly known as Sundial Growers, and Nova was announced in December 2022.
The arrangement originally involved SNDL transferring 26 cannabis stores to Nova while retaining a management- and administrative-services deal with the retailer, replacing a credit facility and
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