SNDL (NASDAQ: SNDL) is set to acquire an indirect interest in US cannabis assets through its interests in SunStream Bancorp following a review by the listing authority of Nasdaq. Sunstream Bancorp holds non-voting and non-participating exchangeable interests in SunStream USA Group, which has been approved to acquire US-based cannabis assets.
Notably, SNDL will not be able to consolidate the financial statements of the US operations until such time it is legally permissible under law and listing regulations.
With approval now in hand, Sunstream USA is set to acquire certain assets from SunStream Opportunities, which will result in majority ownership over assets of Surterra Holdings, whom operates as Parallel, and Greenpeak Industries, whom operates as Skymint. On a combined basis, the transaction will result in exposure to operations in the states of Florida, Massachusetts, Nevada, Texas, and Michigan.
The holdings are expected to rank Sunstream USA as a top ten US multi-state operator, however estimated topline revenues were not provided. SNDL added that should legislation change, and the assets were to be fully acquired, it would rank the company as a top five North American operator in terms of the cannabis industry.
“This initiative creates attractive optionality for SNDL upon federal legalization to deploy additional investment capital into the SunStream USA Group structure, improving the return potential of attractive U.S. cannabis assets in growing markets,” commented SNDL CEO Zach George.
SNDL last traded at $2.21 on the Nasdaq.
Information for this story was found via Sedar and the companies 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.
