A Reddit favorite cannabis company Sundial Growers Inc. (NASDAQ: SNDL) revealed Tuesday it has finalized the acquisition of Inner Spirit Holdings Ltd. (CSE:ISH) (OTCQB: INSHF), known for its national network of Spiritleaf retail stores. The total consideration for the purchase is set to 30 cents in cash and 0.0835 of a common share of Sundial for each Inner Spirit share.
On the news, Sundial’s shares closed Tuesday market sessions slightly higher – 3.95%, at 84 cents per share.
The completion of the purchase comes on the heels of Sundial’s joint venture SunStream lending $25 million to Clever Leaves Holdings Inc. (NASDAQ: CLVR).
The Calgary, Alberta-headquartered company noted several important benefits resulting from this deal.
- Sundial claims it will become one of the largest vertically integrated cannabis companies in Canada via this acquisition; with the addition of Spiritleaf, the company enters into cannabis retail and will obtain product marketing insights;
- The deal could also make Sundial one of the biggest single-branded networks of retail operations in Canada with more than 100 stores across six provinces;
- The acquisition further strengthens the company’s retail proficiency with cannabis advocates.
“The acquisition of the Spiritleaf cannabis retail network makes Sundial a stronger and more diverse cannabis company,” Zach George, CEO of Sundial stated. “We are excited to work with the Spiritleaf team and franchise partners to further develop and optimize the store network in Canada and provide a clear path to sustainable profitability for Sundial. Spiritleaf has demonstrated the ability to grow its brand from coast to coast, and we plan to support this growth trajectory, enhance the use of data to make key business decisions, and provide an optimal product assortment to meet the diverse needs of Canadian cannabis consumers.”
Darren Bondar, president and CEO of Inner Spirit noted that the acquisition will benefit Inner Spirit shareholders while accelerating Sundial’s path to profitability.
ATB Capital Markets served as financial advisor and McCarthy Tétrault LLP acted as legal counsel to Sundial. Echelon Capital Markets took the role of a financial advisor and DS Burstall LLP acted as legal counsel to Inner Spirit.
Sundial’s shares were trading 0.54% higher at 85 cents per share during Wednesday’s pre-market session.
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