Canadian cannabis operator SNDL paid 32.2 million Canadian dollars (roughly $23 million) for 32 stores in three provinces.
SNDL, which also owns liquor brands, will acquire 27 1CM stores in Ontario, three in Saskatchewan and two in Alberta, according to a Thursday news release.
The deal is subject to conditions that include court and regulatory approval, the release noted, and 1CM shareholders must approve the acquisition at a special meeting expected to be held in June.
If all the required approvals occur, the deal is expected to close by the end of the third quarter.
SNDL’s acquisition of 1CM comes only weeks after the company acquired a roughly 5.4% stake in High Tide, which operates Canada’s largest cannabis retail chain.
The 1CM stores generated CA$53 million in revenue for the fiscal year that ended Aug. 31, with 30 stores active at the end of the fiscal year, SNDL said in the release.
The acquisition brings the Calgary, Alberta-headquartered company’s owned and franchised cannabis store count to 219.
“The addition of these locations will increase SNDL’s exposure to a broad consumer base in key Canadian markets and aligns with our stated capital priorities as we build a sustainable cannabis retail portfolio at scale,” CEO Zack George said in a statement.
According to the release, 1CM expects to return a “substantial portion of the sale proceeds to shareholders” and use the “balance of the proceeds for the development of new locations and for general corporate purposes.”
