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SDNL completes $138 million acquisition of The Valens Company

SNDL has completed the acquisition of all of the issued and outstanding common shares of The Valens Company for total consideration of approximately $138 million consisting of common shares of SNDL and assumption of Valens' $60 million non-revolving term loan facility. All financial information in this press release is reported in Canadian dollars unless otherwise indicated.

With approximately $262.5 million in net cash and no debt, SNDL will continue to have one of the strongest balance sheets in the North American cannabis industry. SNDL will also have the highest pro forma consolidated net revenue among all Canadian cannabis companies based on the last fiscal quarter of each company on an annualized basis. The combined company will operate as SNDL Inc., headquartered in Calgary, Alberta.

"This is an exciting day for SNDL as we become stronger and more adaptable, with capabilities that provide us an opportunity to become a leader and trusted partner within the Canadian cannabis industry," said Zach George, Chief Executive Officer of SNDL. "SNDL's existing consumer packaged cannabis business will be transformed by Valens' high-quality extraction, processing, and manufacturing capabilities. Broad capabilities in all relevant product categories will further our goals of bringing people together through exceptional products and experiences. With the close of this transaction, we will focus on integrating our assets and teams while delivering both cost synergies and incremental revenue from greater distribution of Valens products."

The company is pleased to announce that Frank Krasovec has been appointed to the Board of Directors ("Board'), effective January 17, 2023. The Board now consists of six directors.

Frank Krasovec is an experienced, successful entrepreneur with a history of co-founding highly successful companies in multiple industries, including venture capital, media/ telecommunications, food service, energy products, urgent care medicine, and real estate development and management. Mr. Krasovec is currently the CEO of Norwood Investments and is also co-founder and Chairman of DPC Dash, which owns and operates approximately 600 Domino's Pizza stores in China. DPC Dash has plans to list on the Hong Kong Exchange in 2023.

Zach George will continue to serve as Chief Executive Officer of SNDL, and Tyler Robson, the former CEO of Valens, will join the leadership team as President of Cannabis, effective January 17, 2023. Andrew Stordeur, SNDL's former President and Chief Operating Officer, has left the company effective January 13, 2023. SNDL thanks Mr. Stordeur for his tireless efforts in building our commercial infrastructure and wishes him the best in his future endeavors.

"I am excited by the strong cultural fit between our teams and humbled by the opportunity to work alongside our new colleagues and leadership team," added George. "I want to thank and congratulate everyone at SNDL and Valens for their dedication and hard work in bringing this transaction to a successful conclusion. This is another significant milestone for our company, and we are determined to seize the opportunity to create value for our stakeholders and delight consumers.

For more information:
The Valens Company
[email protected]  

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