Canadian marijuana and alcohol company SNDL has acquired the debt of Delta 9 Cannabis for 28.1 Canadian dollars ($20.6 million) and entered a stalking-horse agreement to purchase distressed edibles maker Indiva.
Alberta-based SNDL acquired the debt position from Connect First and Servus Credit Union, according to a news release.
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SNDL now senior secured creditor
As a result of that transaction, SNDL is now Delta 9’s senior secured creditor with a first priority security interest in all the company’s assets and certain subsidiaries.
Under SNDL’s deal with Delta 9, the Winnipeg, Manitoba-based marijuana cultivator and retailer’s indebtedness to SNDL increases to CA$40.6 million.
Delta 9 has struggled for profitability, invoking layoffs and other cost-cutting measures the past few years.
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