May 6, 2021 By The Canadian Press
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.
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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