SNDL, a Canadian cannabis operator, has purchased 32 cannabis stores for CA$32.2 million, which is approximately $23 million in U.S. currency. This acquisition includes 27 stores located in Ontario, three in Saskatchewan, and two in Alberta, as announced in a recent news release.
The deal is contingent upon several conditions, including court and regulatory approvals. Additionally, shareholders of 1CM, the company selling the stores, must approve the acquisition at a special meeting scheduled for June. If all necessary approvals are granted, the transaction is anticipated to close by the end of the third quarter.
This acquisition follows SNDL’s recent investment in High Tide, where it secured a roughly 5.4% stake in Canada’s largest cannabis retail chain. For the fiscal year ending August 31, the 1CM stores generated CA$53 million in revenue, with 30 stores operational at that time. With this purchase, SNDL will expand its total number of owned and franchised cannabis stores to 219.
Zack George, CEO of SNDL, stated that adding these locations will enhance the company’s reach to a diverse consumer base in significant Canadian markets. He emphasized that this move aligns with their goal of building a sustainable cannabis retail portfolio at scale.
According to the release, 1CM plans to return a significant portion of the sale proceeds to its shareholders and use the remaining funds for developing new locations and general corporate purposes.
