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SNDL Inc. (Nasdaq: SNDL) and Nova Cannabis Inc. (TSX: NOVC) announced on Monday that SNDL has agreed to assign its rights to own or operate four Dutch Love cannabis retail stores to Nova in a deal that will see Nova issue $8.179 million of its shares to SNDL.

The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close by the end of April 2024. Upon completion, Nova’s total store count will reach 100, while SNDL’s direct and indirect cannabis store count across all retail banners will stand at 190.

“SNDL remains committed to strengthening Nova’s retail position and the sustainability of its capital structure, as underscored by the extension of the credit facility,” SNDL CEO Zach George said in a statement. “The assignment of four well-located cannabis retail stores to be owned or operated by Nova creates an opportunity for Nova to open its first Value Buds branded locations in British Columbia and highlights the benefit of SNDL’s M&A pipeline.”

In addition to the store assignment, SNDL has extended the maturity date of a $15 million revolving credit facility with Nova for an additional 24 months, to March 31, 2026. The credit facility has also been amended to remove SNDL’s right to demand repayment prior to the maturity date, subject to certain conditions.

“The updates announced further solidify SNDL’s continued support of Nova’s growth trajectory,” said Anne Fitzgerald, lead independent director of Nova. “We will continue to collaboratively pursue avenues that support Nova’s expansion and optionality with our partners at SNDL.”

McCarthy Tétrault LLP is acting as legal counsel to SNDL, while Bennett Jones LLP is acting as legal counsel to Nova.

The post SNDL divests four stores to Nova Cannabis in share deal appeared first on Green Market Report.

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Adam Jackson, KahliBuds, 420GrowLife