SNDL makes successful bid for Indiva and its Ontario edibles facility
Following edibles producer Indiva receiving creditor protection in June, SNDL Inc. (NASDAQ: SNDL) will now be acquiring its assets through a successful stalking horse bid. A stalking horse refers to an initial bid on the assets of a bankrupt company.
SNDL has been a major stakeholder in Indiva for years. The Nasdaq-listed cultivator invested C$22 million into Indiva in 2021.
Now, SNDL will soon be completely taking over Indiva and its 40,000-square-foot edibles production facility in London, Ontario. Through the acquisition, SNDL will obtain seven edibles brands.
“This transaction will materially improve our market share in the edibles category and is expected to unlock value through improved capacity utilization, a reduction in aggregate corporate expenses and the potential sale of redundant real estate holdings,” SNDL chief executive Zach George said.
Ontario’s Superior Court of Justice still needs to approve the transaction. This is expected by to occur by the end of September. Indiva and its assets are estimated to be worth about C$26.5 million.
$SNDL Announces Successful Bid to Purchase Indiva.
SNDL’s acquisition includes Indiva’s state-of-the-art facility in London, Ontario and a portfolio of leading owned and licensed brands including Pearls by Grön, No Future, Wana, and Bhang Chocolate. The Transaction is expected…
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Canada’s largest private liquor retailer
In addition to having a major presence in the cannabis business, currently holding 10 per cent of the nation’s private dispensaries, SNDL sells more booze than any other private retailer nationwide.
The company conducts its liquor business through the Wine and Beyond, Ace Liquor and Liquor Depot brands. SNDL has over 170 locations under these names, primarily in Alberta.
Wine and Beyond is the largest liquor store chain in western Canada.
SNDL turned a gross profit of C$58.1 million in Q2 this year. Adjusted operating income from alcohol retail totalled C$8.2 million last quarter.
rowan@mugglehead.com
