Comments on Sundial Growers Inc. Acquisition of Alcanna Inc EDMONTON, AB, Oct. 7, 2021 /CNW/ - Nova Cannabis Inc. (the "Company" or "Nova") (TSX: NOVC) is pleased to provide comment on today's announcement that Sundial Growers Inc. ("Sundial") (NASDAQ: SNDL) entered into an arrangement agreement to acquire all of the issued and outstanding common shares of Alcanna Inc. ("Alcanna") (TSX: CLIQ), Nova's majority shareholder (the "Transaction").
The Transaction as contemplated is between Sundial and Alcanna and it is not expected to impact Nova's continued access to the services provided under the master services agreement ("MSA") between Nova and Alcanna nor the potential to access debt financing available through the operating line of credit from Alcanna; both of which were made available to the Company to support its aggressive growth strategy and both of which survive an Alcanna change of control.
Alcanna provides Nova, on flat fee basis, a number of management and administrative services outlined in the MSA between the two companies. The terms of the MSA with Alcanna guarantees a continuation of services and service levels until March 2023, including in the event of a change of control as the one contemplated in the Transaction.
In addition, the Company currently has access to an operating line of credit with Alcanna for up to $10 million which also survives an Alcanna change of control.
Nova is committed to working with Sundial and the provincial regulators to ensure the Company remains fully compliant with the various provincial regulatory frameworks that govern cannabis retailing in Canada and looks forward to continuing to work with all of its Licenced Producer partners and industry stakeholders to continue to provide the products our customers want at every-day low prices.