SNDL Inc. has been selected as the successful bidder for the acquisition of Indiva Limited’s business and assets, following proceedings under Canada’s Companies’ Creditors Arrangement Act (CCAA).
The acquisition includes Indiva’s 40,000 square foot facility in London, Ontario, and a portfolio of leading cannabis brands such as Pearls by Grön and Bhang Chocolate.
SNDL’s CEO, Zach George, said: “We are thrilled by the opportunity to partner with our colleagues at Indiva to deliver high-quality products and brands to consumers.
“This transaction will materially improve our market share in the edibles category and is expected to unlock value through improved capacity utilization, a reduction in aggregate corporate expenses, and the potential sale of redundant real estate holdings.”
The transaction, pending approval from the Ontario Superior Court of Justice and other regulatory authorities, is expected to close in SNDL’s fourth quarter of 2024.
In June, Business of Cannabis reported that Indiva Limited had officially received creditor protection ‘in order to restructure (its) business and financial affairs’.
The embattled company said that the Ontario Superior Court of Justice had granted the initial order under the Comapnies Creditors’ Arrangement Act (CCAA)
This is a process reserved for larger corporations that owe their creditors over $5m and are facing financial difficulty, allowing the company protection from its creditors while it develops a restructuring plan, which can involve selling assets or raising new capital,
SNDL, a key creditor and significant stakeholder in Indiva, announced its intention at the time to ‘acquire substantially all of the business and assets of the Indiva Group, by issuing an initial ‘stalking horse’ bid, which set the bottom price for the bidding process to begin.
In early June, 2024, Indiva announced that its liabilities from a strategic investment of $22m from SNDL in 2021 had been extended, after the company paid back $2m in April, 2024. In their most recent quarterly report, Indiva announced a net loss of $1.8 million.
The company cited ‘the fragmentation of the cannabis industry, financial underperformance and pressures resulting from obligations owing to creditors’, for its financial woes.
The post SNDL to Acquire Indiva’s Cannabis Assets After Stalking Horse Bid appeared first on Business of Cannabis.
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