By Stephen Nakrosis
SNDL and Nova Cannabis said Friday they have mutually agreed to terminate the implementation agreement concerning their previously-announced strategic partnership.
The companies also said they reaffirmed commitment to their ongoing partnership under a management and administrative services agreement.
The terms of the deal, which was announced in December of last year, called for SNDL to vend into Nova’s cannabis retail business 26 cannabis retail stores located in Ontario and Alberta which operated under the Spiritleaf and Superette banners. Nova would have been permitted to use SNDL’s brands’ intellectual property and other intangible property in exchange for a license fee, the companies said.
Other terms included the elimination of a $15 million revolving credit facility by SNDL, and the return of about 14.3 million common shares by SNDL to Nova’s treasury for cancellation.
“In connection with the termination of the Implementation Agreement, SNDL and Nova have extended the maturity date of Nova’s credit facility with SNDL to March 31, 2024,” the companies said.
They also said a previously planned distribution of Nova common shares to SNDL shareholders will not proceed at this time.
Write to Stephen Nakrosis at [email protected]
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