Manitoba, Canada-based marijuana grower and retailer Delta 9 Cannabis closed a deal to acquire 17 stores in Alberta and arranged a private placement worth 10 million Canadian dollars ($8 million) from Sundial Growers.
Delta 9 also closed a CA$32 million credit facility announced in February, the company said in a Thursday news release.
The 17 Alberta cannabis stores acquired by Delta 9 operate under the Uncle Sam’s Cannabis and Discounted Cannabis banners.
Delta 9 paid CA$12.5 million in cash plus roughly 6.7 million Delta 9 common shares.
Delta 9 CEO John Arbuthnot said in a statement that the company now owns 34 cannabis retail locations and is pursuing “an aggressive growth strategy to actively acquire cannabis retail stores that will provide meaningful revenue growth and positive adjusted EBITDA.”
The newly closed credit facility “improves Delta 9’s financial position, lowers our cost of capital and provides funds for the purchase of the 17 Uncle Sam’s cannabis retail store acquisition,” Arbuthnot added.
Meanwhile, Delta 9 said it will also complete a CA$10 million private placement from cannabis producer Sundial Growers.
The CA$10 million in convertible debentures will mature in March 2025 and carry a 10% annual interest rate.
The debentures are convertible into Delta 9 shares at CA$0.35 per share, but that conversion price could be adjusted downward if Delta 9 completes an equity offering within six months at CA$0.29 per share or less.
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Delta 9 also has an option to convert interest into common shares, as does Sundial in the event of an ongoing default.
Sundial is being granted the right to take part in future Delta 9 debt or equity financings.