SNDL Inc.'s director Carlo Cannell resigns without named successor
The Oct. 6 departure took effect immediately, while SNDL's board page still listed Cannell among seven directors on Oct. 7.
Theo Marchetti
In Canada's cannabis retail sector, J. Carlo Cannell resigned from a listed company's board on Oct. 6, effective immediately. SNDL Inc. CNSXSNDL NASDAQSNDL still listed seven directors, including Cannell, on its governance page when reviewed Oct. 7.
SNDL's Oct. 6 announcement gives no reason for his departure and names no successor. It does not say whether the board intends to fill his seat or change its size. Because the online roster still includes Cannell, the seven names on that page do not establish the board's membership after his resignation.
SNDL's NASDAQSNDL shares traded at US$1.25 at 3:37 p.m. EDT on Oct. 7.
SNDL Intended to Appoint Cannell
SNDL linked Cannell's proposed board appointment to its purchase of Nova Cannabis's remaining minority shares in October 2024. In its Oct. 21, 2024, release, SNDL said it had acquired about 34.8 per cent of Nova shares it did not already own and intended to appoint Cannell in connection with that arrangement.
"In connection with the Arrangement, SNDL intends to appoint to its board of directors J. Carlo Cannell, 61, a leading practitioner of special situations since the formation of Cannell Capital in 1992," SNDL said in that release.
Nova shareholders approved the arrangement on Oct. 16, 2024, and the Court of King's Bench of Alberta granted a final order the following day, according to SNDL's release. SNDL announced the transaction's closing on Oct. 21, 2024. The board page confirms Cannell later appeared in the company's director roster, although it had not been updated to reflect his October 2026 departure when reviewed.
The governance page identifies J. Gregory Mills as chair and Zachary George as a director. It also names Gregory Turnbull, Lori Ell, Bryan D. Pinney and Frank Krasovec alongside Cannell. Neither that page nor the Oct. 6 notice identifies a replacement or says whether any committee assignments will change.
SNDL produces cannabis and operates cannabis and liquor retail businesses in Canada. Its Oct. 6 company description lists Value Buds, Spiritleaf and Cost Cannabis among its cannabis banners, and Ace Liquor and Wine and Beyond among its liquor banners. The company says its investment portfolio seeks direct and indirect investments and partnerships in the North American cannabis industry.
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The company's July 28 second-quarter report listed four reporting segments: liquor retail, cannabis retail, cannabis operations and investments. It reported C$235.8 million in net revenue for the three months ended June 30 and an operating loss of C$7.8 million for that period. Unrestricted cash was C$183.2 million at June 30, and the company reported no debt.
SNDL also said it had repurchased 11.7 million common shares during the second quarter. Those financial and operating figures predate Cannell's resignation. The Oct. 6 notice gives no revised outlook or timetable for a board appointment.
Cannell's resignation took effect Oct. 6. SNDL's Oct. 6 notice and its governance page, reviewed Oct. 7, provide no date for naming another director; the page still listed Cannell.
