- Alcanna shareholders will receive 10.69 Sundial common shares for each Alcanna share held
- The transaction prices represents a 39 per cent premium to Alcanna’s 10-day VWAP on the TSX
- The transaction will require the approval of at least two-thirds of the votes cast by Alcanna shareholders at a shareholder meeting in December
- The agreement includes a $10M termination fee payable to Sundial in the event the transaction is terminated
- Alcanna is one of the largest private-sector retailers of alcohol in North America
- Sundial is a licensed cannabis producer
- Alcanna Inc. (CLIQ) opened trading at C$8.09 per share
Alcanna Inc. (CLIQ) has entered into an agreement with Sundial Growers Inc.
Under the terms of the agreement, Sundial will acquire all of the issued and outstanding common shares of Alcanna for $9.12 per share representing an acquisition value of approximately $346 million. Alcanna shareholders will receive 10.69 Sundial common shares for each Alcanna share held.
“This transaction represents immediate value creation for our shareholders as well as a meaningful ownership position in a large and rapidly growing diversified company,” said James Burns, Vice-Chair and Chief Executive Officer of Alcanna.
“Having reviewed various strategic alternatives for Alcanna over the past 18 months, I am confident that the transaction with Sundial offers the best alternative for Alcanna.”
“We are excited to welcome Alcanna into the Sundial organization,” said Zach George, Chief Executive Officer of Sundial.
“Alcanna’s stable and growing cash flow profile and best in class retail operations expertise will further accelerate our retail growth strategy and also allow us to focus more management effort on our rapidly expanding investment arm.”
The transaction will be subject to the approval of at least two-thirds of the votes cast by Alcanna shareholders at a special meeting expected to be convened by Alcanna in December 2021. The closing of the transaction, expected in December 2021 or in the first quarter of 2022, is subject to regulatory approvals.
The agreement provides a termination fee of $10 million payable to Sundial in the event the transaction is terminated.
Alcanna is one of the largest private-sector retailers of alcohol in North America and the largest in Canada by the number of stores – operating locations in Alberta and British Columbia. The company’s majority-owned subsidiary, Nova Cannabis, also operates cannabis retail stores in Alberta, Ontario, and Saskatchewan.
Sundial is a licensed cannabis producer.
Alcanna Inc. (CLIQ) opened trading at C$8.09 per share.
