Nova to broaden to 100 merchants with SNDL’s Dutch Like transfer extends $15 million credit line.
SNDL Inc. (Nasdaq: SNDL) and Nova Hashish Inc. (TSX: NOVC) introduced on Monday that SNDL has agreed to assign its rights to have or operate four Dutch Love hashish retail outlets to Nova in a deal that will see Nova concern $8.179 million of its shares to SNDL.
The transaction, which is issue to customary closing conditions and regulatory approvals, is envisioned to shut by the finish of April 2024. On completion, Nova’s total keep rely will achieve 100, while SNDL’s direct and oblique hashish keep count across all retail banners will stand at 190.
“SNDL stays fully commited to strengthening Nova’s retail situation and the sustainability of its funds framework, as underscored by the extension of the credit rating facility,” SNDL CEO Zach George mentioned in a statement. “The assignment of 4 properly-located hashish retail retailers to be owned or operated by Nova results in an chance for Nova to open up its initially Worth Buds branded places in British Columbia and highlights the benefit of SNDL’s M&A pipeline.”
In addition to the shop assignment, SNDL has extended the maturity date of a $15 million revolving credit score facility with Nova for an more 24 months, to March 31, 2026. The credit score facility has also been amended to take away SNDL’s appropriate to demand from customers compensation prior to the maturity day, subject to sure disorders.
“The updates introduced even more solidify SNDL’s continued aid of Nova’s progress trajectory,” said Anne Fitzgerald, lead unbiased director of Nova. “We will continue on to collaboratively pursue avenues that help Nova’s expansion and optionality with our partners at SNDL.”
McCarthy Tétrault LLP is acting as authorized counsel to SNDL, though Bennett Jones LLP is performing as lawful counsel to Nova.
