SNDL Acquires Delta 9 Cannabis'; Debt, Ascends to Senior Secured Creditor Status

Rhea-AI Summary

SNDL announced the acquisition of Delta 9 Cannabis' principal indebtedness, securing a first priority security interest in all Delta 9 assets. The transaction, valued at CAD $28,138,284, was completed on July 5, 2024, in agreement with Connect First and Servus Credit Union Following this acquisition, SNDL's total secured claims against Delta 9 amount to CAD $40,653,352.

Positive

• SNDL enhances its financial leverage by becoming Delta 9's senior secured creditor.
• Total secured claims against Delta 9 now amount to CAD $40,653,352, increasing SNDL's influence over Delta 9.

Negative

• The acquisition cost SNDL CAD $28,138,284, adding to its expenditure.

News Market Reaction – SNDL

+1.55%

+1.55% Session move

In the trading session that priced this news, SNDL gained 1.55%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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CALGARY, AB, July 5, 2024 /PRNewswire/ - SNDL Inc. (Nasdaq: SNDL) ("SNDL" or "The Company") today announced that it has completed the acquisition (the "Debt Acquisition") of the principal indebtedness (the "Purchased Indebtedness") of Delta 9 Cannabis Inc. ("Delta 9") from Connect First and Servus Credit Union Ltd. ("CFCU") for a purchase price of CAD $28,138,284 pursuant to a purchase and sale of indebtedness agreement dated July 5, 2024.

As a result of the Debt Acquisition, SNDL has become Delta 9's senior secured creditor with a first priority security interest in all of the assets of Delta 9 and certain Delta 9 subsidiaries. The Purchased Indebtedness brings Delta 9's total indebtedness owing to SNDL to CAD $40,653,352.

ABOUT SNDL INC. 

SNDL is a public company whose shares are traded on the Nasdaq under the symbol "SNDL." SNDL is the largest private-sector liquor and cannabis retailer in Canada with retail banners that include Ace Liquor, Wine and Beyond, Liquor Depot, Value Buds, Spiritleaf, and Firesale Cannabis. SNDL is a licensed cannabis producer and one of the largest vertically integrated cannabis companies in Canada specializing in low-cost biomass sourcing, premium indoor cultivation, product innovation, low-cost manufacturing facilities, and a cannabis brand portfolio that includes Top Leaf, Contraband, Palmetto, Bon Jak, Versus, Value Buds, and Vacay. SNDL's investment portfolio seeks to deploy strategic capital through direct and indirect investments and partnerships throughout the North American cannabis industry. For more information on SNDL, please go to https://sndl.com/.

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SOURCE SNDL Inc.

FAQ

What did SNDL acquire from Delta 9 Cannabis?

SNDL acquired the principal indebtedness of Delta 9 Cannabis, making it the senior secured creditor with a first priority security interest in Delta 9's assets.

What is the value of the acquisition deal between SNDL and Delta 9?

The acquisition deal is valued at CAD $28,138,284.

How much total indebtedness does Delta 9 owe to SNDL?

Delta 9's total indebtedness to SNDL is CAD $40,653,352.

When was the acquisition of Delta 9 Cannabis' debt by SNDL completed?

The acquisition was completed on July 5, 2024.

Who were the previous creditors of Delta 9 Cannabis before SNDL?

The previous creditors were Connect First and Servus Credit Union