NVACF - SNDL and Nova Cannabis enter strategic partnership

• SNDL ( NASDAQ: SNDL ) and Nova Cannabis ( OTCQB:NVACF ) enter into an agreement creating a well-capitalized cannabis retail platform in Canada under a vertical integration model with SNDL's upstream capabilities.
• Pursuant to the transaction, Nova will receive from SNDL: retail contribution; corporate services; debt restructuring that includes $15M revolving credit facility is to be eliminated by SNDL, which is expected to be fully drawn at the time of the closing of the transaction. This will immediately provide Nova with additional liquidity of ~$5.5M from drawing the undrawn amount ahead of closing
• Return of equity including ~14.3M shares of Nova held by SNDL's holdings will be returned to Nova's treasury for cancellation
• And increased liquidity: SNDL plans to reduce its equity ownership in Nova to below 20% through a capital distribution of Nova Shares owned by SNDL to SNDL shareholders.

• As consideration, SNDL will receive intellectual property rights to Nova's fast-growing and disruptive Value Buds banner of 88 stores and the license to grant Nova to operate the Value Buds, Spiritleaf and Superette banners.

For further details see: