SNDL Acquires Zenabis Business

SNDL Inc. SNDL announced that, in the context of proceedings pursuant to the Zenabis Group's filing under the Companies' Creditors Arrangement Act (Canada), it has successfully closed its acquisition of the Zenabis business, pursuant to an approval order of the Québec Superior Court.

"In preparation for the exit of Zenabis from the CCAA process, our operational teams have been working closely with Zenabis' monitor and leadership as we plan to integrate our two businesses," stated Zach George, SNDL's CEO. "As a result of the transaction, SNDL will acquire an indoor cultivation facility with considerable capabilities and proven outcomes, significant monetizable cannabis inventory, and valuable non-core real estate assets. We look forward to partnering with our colleagues at Zenabis to take advantage of the opportunities this acquisition offers."

The Zenabis business' core asset is the 380,000-square-foot indoor growing facility in Atholville, New Brunswick, which has an annual production capacity of approximately 46,000 kilograms of dried cannabis and 15,000 kilograms of extraction capacity. The facility previously received EU GMP certification and has exported cannabis shipments to Malta, Israel and Australia. SNDL completed its first international shipment of dried cannabis flower in August of 2022, and as the company works to expand its international export business, the Atholville facility and Zenabis business' customer relationships are valuable assets.

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Photo: Benzinga; Sources: courtesy of jarmoluk and lindsayfox via Pixabay

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