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Monday, May 20, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Canada

Sundial completes acquisition of Zenabis Business

SNDL has added a substantial EU-GMP-certified cultivation facility to its resources with the transaction

SNDL's yearly revenue skyrockets to $712.2M, marking a record-breaking 1170% surge
Photo via SNDL Inc.

SNDL Inc. (NASDAQ: SNDL) has successfully completed its acquisition of the Zenabis Business in accordance with an approval order of the Québec Superior Court.

On Tuesday, the major Canadian liquor and cannabis retailer announced news of the transaction which will provide the company with a large cultivation facility in New Brunswick.

That 380,000-square-foot facility is capable of producing 46,000 kilograms of dried cannabis annually. The complex was the core asset of the Zenabis Business prior to the acquisition and it had previously received EU-GMP certification, enabling pot shipments to be sent from the location to Australia, Israel and Malta.

Read more: SNDL and IM Cannabis ship first pot flower batch to Israel under joint agreement

Read more: Hexo to enter Europe with $265M Zenabis acquisition

“In preparation for the exit of Zenabis from the Companies’ Creditors Arrangement Act (CCAA) process, our operational teams have been working closely with Zenabis’ Monitor and leadership as we plan to integrate our two businesses,” said Zach George, CEO of SNDL.

“As a result of the transaction, SNDL will acquire an indoor cultivation facility with considerable capabilities and proven outcomes, significant monetizable cannabis inventory, and valuable non-core real estate assets. We look forward to partnering with our colleagues at Zenabis to take advantage of the opportunities this acquisition offers.”

SNDL has also acquired 22 million grams of cannabis inventory and a 255,000-square-foot industrial facility in Nova Scotia through the acquisition, which the company is considering selling. Intellectual property rights for Zenabis brands and cultivars were also obtained by SNDL.

Zenabis was previously owned by HEXO Corp. (TSX: HEXO; NYSE: HEXO) prior to being purchased by SNDL.

 

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