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SNDL Inc. (NASDAQ:SNDL) announced on Thursday that its stalking horse bid was chosen as the most successful bid for acquiring the Indiva Limited‘s (TSXV:NDVA) (OTCQX:NDVAF) business and assets.
That's in the context of proceedings under Indiva’s filing under the Companies’ Creditors Arrangement Act and the sales and investment solicitation process. The transaction is subject to approval by the Ontario Superior Court of Justice overseeing the CCAA proceedings.
The company's acquisition includes Indiva’s state-of-the-art facility in London, Ontario as well as a portfolio of owned and licensed brands including Pearls by Grön, No Future, Wana, and Bhang Chocolate.
SNDL first announced in early July it plans to buy all of the issued and outstanding shares of Indiva and the business and assets of the Indiva Group, on the heels of Indiva’s June business restructuring announcement.
Later that month SNDL also announced its restructuring revealing that as part of these operational adjustments, it is consolidating its cannabis segments into a single unit under the leadership of Tyler Robson.
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The deal would boost SNDL’s product offerings while strengthening the company's position in the Canadian cannabis market.
“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,” said Zach George, the company's CEO.
Indiva is the maker of cannabis edibles and produces products across a wide range of brands, with a portfolio of 7 brands and 53 listed SKUs, all manufactured in its 40,000 square-foot production facility on Hargrieve Road in south London, Ontario.
Indiva said it will seek approval for the transaction from the court on or about Sept. 19, 2024.
The transaction is subject to the court granting an approval and vesting order and the transaction receiving the approval of other regulatory authorities.
The deal is expected to close during SNDL’s fourth quarter.
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SNDL's shares traded 1.82% higher at $1.955 per share at the time of writing on Thursday morning.
