SNDL to acquire Cost Cannabis and T Cannabis locations from 1CM

SNDL (SNDL) have entered into an arrangement agreement pursuant to which SNDL will acquire from 1CM 32 cannabis retail stores operating under the Cost Cannabis and T Cannabis banners in Ontario, Alberta and Saskatchewan for total consideration of C$32.2M in cash. The 1CM Stores are comprised of 2 stores in Alberta, 3 stores in Saskatchewan and 27 stores located in Ontario. The 1CM Stores generated annual revenue of an aggregate of C$53M in FY24 with 30 active stores at the fiscal year end. The acquisition of the 1CM Stores will bring SNDL’s total owned and franchised cannabis retail store count to 219. 1CM’s board of directors unanimously approved the Agreement and unanimously recommends that shareholders vote in favour of the Transaction at the upcoming annual and special meeting of shareholders of 1CM. Assuming the timely receipt of all required approvals, the Transaction is anticipated to close by the end of Q3. Assuming the Transaction is completed, 1CM anticipates returning a substantial portion of the sale proceeds to shareholders and using the balance of the proceeds for the development of new locations and for general corporate purposes.