Canadian company SNDL is reducing its direct exposure to marijuana retail in a multifaceted deal involving Nova Cannabis.
SNDL, formerly known as Sundial Growers, is currently a majority owner of the Edmonton, Alberta-based retail chain.
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Under terms of the deal, SNDL will give Nova 26 cannabis retail stores under the Spirtleaf and Superette banners, all in Alberta and Ontario.
“Nova will also have a right of first refusal on (SNDL’s) Canadian cannabis retail pipeline,” Calgary, Alberta-headquartered SNDL noted in a Tuesday night news release.
SNDL will maintain its management and administrative services deal with Nova, amending the deal so the latter pays no fee for three years and a 2 million Canadian dollar ($1.5 million) annual fee after that.
Also under the deal, SNDL will eliminate a CA$15 million revolving credit facility after Nova draws the remaining CA$5.5 million.
It will be replaced by a new
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