Sundial Growers (NASDAQ: SNDL) is doing all that it can to salvage its proposed acquisition of Alcanna Inc (TSX: CLIQ). The firm this morning announced that it would be changing the transaction slightly, in an attempt to boost interest among Alcanna shareholders.
The firm now intends to transition the standing offer to purchase Alcanna from an all-stock transaction to that of a cash and stock deal. The new proposal, which is to be voted on tomorrow at the scheduled special shareholder meeting being held by the retailer, would see shareholders receive 8.85 common shares of Sundial as well as $1.50 in cash for each share of Alcanna held.
Effectively, Sundial has come to the realization that Alcanna shareholders simply do not want Sundial paper, and is now looking to make the deal more enticing by adding the cash component. The arrangement also slightly increases the proposed offer, with the prior offer being valued at $8.37 per share at current prices, versus the new offer which sits at $8.43. The latter represents a premium of 15.3% to the closing price of Alcanna as of yesterday.
Whether the offer is approved by shareholders of Alcanna at this point appears to be a matter of whether Alcanna can convince enough of its shareholders to make the effort to vote.
Sundial Growers last traded at $0.61 on the Nasdaq.
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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.