Sundial Growers Inc. has completed its acquisition of all the issued and outstanding common shares of Alcanna Inc., for considerations of approximately $320 million consisting of both cash and common shares of Sundial.

Alcanna is an alcohol retailer in North America. Its largest market is in Canada, where the company has the most stores. Alcanna’s majority-owned subsidiary is Nova Cannabis Inc., which owns or operates a total of 78 cannabis retail stores in Canada.

The merger has made Sundial Canada’s largest private sector liquor retailer and expanded its revenue profile with the largest cannabis retail network in Canada. Sundial also now holds an approximately 63 percent equity interest in Nova and will continue to provide capital and management services to Nova, as was done by Alcanna.

Former shareholders of Alcanna are entitled to receive 8.85 Sundial shares and $1.50 in cash for each Alcanna share. Upon closing of the acquisition, there are approximately 86.6 percent of such Sundial Shares and former Alcanna shareholders holding approximately 13.4 percent of such Sundial shares.

“This is an exciting day for Sundial as we become a stronger and more capable regulated products platform,” said Chief Executive Officer of Sundial Zach George. “We are developing a business model that has never existed at this scale in Canada, and are committed to continuously improving our business while delighting consumers.”

ATB Capital Markets, Inc. acted as financial advisor to Sundial. McCarthy Tetrault LLP provided legal counsel to Sundial. Cormark Securities Inc. is acting as financial advisor to Alcanna and Clark Wilson LLP is acting as legal counsel to the special committee of the board of directors of Alcanna, and Bennett Jones is providing legal counsel to Alcanna.