SNDL acquires Canadian cannabis products maker Valens for C$138 million

Cannabis producer and retailer SNDL has agreed to buy a stake in manufacturer The Valens Co. in a deal the Alberta-based company says will create a "dominant" vertically integrated operator in Canada. SNDL changed its name from Sundial in July, the companies announced in a news release Monday, in a proposed all-stock deal valued at about C$138 million ($106 million). According to the SNDL release, the outright acquisition of Valens would give the company a combined 4.5 percent share of the overall Canadian cannabis market and a 5.2 percent share of the cannabis 2.0 product market. Cannabis 2.0 refers to categories such as cannabis-infused food products, e-cigarette pens and topicals. According to the press release, SNDL already has 555,500 square feet of cultivation and manufacturing space and 185 cannabis stores under the Spiritleaf and Value Buds stores. As of Dec. 31, 2021, the company's accumulated losses total $788.5 million. The agreement is expected to close in January 2023, with a termination fee of C$8 million payable to SNDL if the deal is unwound under certain circumstances. SNDL says it has approximately C$314 million in cash and no debt. Its shares are traded on the Nasdaq exchange under the name SNDL.

Source: mjbizdaily.com/