Sundial Growers to acquire four Dutch Love locations for $7.8M

Sundial Growers is pleased to announce that it has entered into an agreement with Lightbox Enterprises to acquire four cannabis retail stores operating under the Dutch Love Cannabis banner. Under the Agreement, SNDL will acquire from Lightbox the rights to four Dutch Love stores and the rights to use certain Dutch Love related intellectual property for a total consideration of $7.8M. As part of the Agreement, SNDL will acquire the rights to three Dutch Love stores in British Columbia and one store in Ontario. The combined assets generated annual revenue of $11.5M in 2022, with an average gross margin of 36.5%. The completion of the acquisition is expected to further solidify SNDL’s position as a multi-banner cannabis retail operator by enhancing the company’s market share and its exposure to a broader consumer base in two key markets. The closing of the transaction is subject to customary closing conditions, including regulatory approvals. The transaction is anticipated to close by the end of May 2023.