SNDL Expected To Close On Assets Of Indiva Following Stalking Horse Bid
Two months after the initiation of creditor protection, the assets of Indiva Limited have been sold off, with SNDL Inc (NASDAQ: SNDL) being the benefactor of the sales and investment solicitation process. The company has seen its stalking horse bid for the assets of Indiva be selected as the winning bid under the process.
Assets acquired under the CCAA process include a 40,000 square foot facility in London, Ontario, as well as a portfolio of owned and licensed brands, which include Bhang Chocolate, Wana, o Future, and Pearls by Gron. The company in total has seven separate brands in its portfolio and 53 listed SKU’s within the Canadian cannabis market, all of which are manufactured at the Ontario facility.
READ: Indiva Files For Creditor Protection, Assets Expects To Be Picked Up By SNDL
While financial terms of the stalking horse bid itself weren’t disclosed directly by SNDL, the company is serving as the debtor-in-possession for Indiva through the CCAA process. The company previously was one of Indiva’s largest shareholders, as well as the largest debtor, prior to the process being initiated.
Filings made on August 27 suggest the SNDL has approved funding of up to $2.4 million plus interest, fees and expenses and a DIP facility as part of the CCAA process. This figure is expected to be used as payment for the stalking horse bid, along with the clearing of the outstanding note debt that Indiva presently owes to SNDL, which sits t roughly $17.8 million.
The closing of the transaction is expected to follow the receipt of approval from the courts, which is currently estimated to occur around September 19, 2024.
“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,” commented Zach George, CEO of SNDL.
SNDL last traded at $1.92 on the Nasdaq.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
