Calgary-based pot retailer SNDL Inc. says it is buying four Dutch Love cannabis stores from Lightbox Enterprises Ltd.
SNDL says it is paying $7.8 million for three stores in B.C., one in Ontario and the right to use some of Dutch Love's intellectual property.
Around $1.5 million of the price will be paid in cash, $3 million will come in the form of cancelled debt owed by Lightbox to SNDL and $3.3 million will be paid in common shares of SNDL.
The stores SNDL will acquire generated a combined annual revenue of $11.5 million in 2022, with an average gross margin of 36.5 per cent.
The deal is anticipated to close by the end of May, and is the result of a sale and investment solicitation process undertaken by Lightbox as part of its proceedings under the Companies' Creditors Arrangement Act.
The expected close will be concurrent with the proposed restructuring of Nova Cannabis Inc. and SNDL.
Lightbox Entertainment is run by those behind Vancouver’s Donnelly Group, best known for its chain of pubs. The West Coast company sought creditor protection late last year.
This report by The Canadian Press was first published March 28, 2023.
The Canadian Press