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Sundial Growers to buy Inner Spirit for $131M


May 6, 2021
By The Canadian Press

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(Credit: Spiritleaf via Facebook)

Sundial Growers Inc. says it will purchase cannabis company Inner Spirit Holdings Ltd. in a $131-million deal.

The transaction will hand 86 Spiritleaf pot stores Inner Spirit owns and franchises to Sundial, which is a licensed producer of craft cannabis.

Inner Spirit’s shareholders will receive 30 cents and 0.0835 of a Sundial common share for every Inner Spirit share they hold.

The offer amounts to roughly 39 cents per Inner Spirit share and is a 62.5 per cent premium based on the company’s closing shares price on Tuesday.

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The Calgary-based companies say the deal will provide “modest” synergies and help Sundial become a stronger and more diverse cannabis company.

The transaction has been unanimously approved by Sundial and Inner Spirit’s board of directions, but still needs the approval of two-thirds of Inner Spirit shareholders, who will vote on the transaction in July.

The companies expect the deal to close early in the third quarter of this year.


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