SNDL Enters into Agreement to Acquire Cost Cannabis and T Cannabis Locations from 1CM

Core Viewpoint - SNDL Inc. has entered into an agreement to acquire 32 cannabis retail stores from 1CM Inc. for a total consideration of $32.2 million in cash, enhancing SNDL's retail presence in Canada [1][2][3]. Group 1: Transaction Details - The acquisition includes 2 stores in Alberta, 3 in Saskatchewan, and 27 in Ontario, with the 1CM Stores generating annual revenue of$53 million for the fiscal year ending August 31, 2024 [2]. - Following the acquisition, SNDL's total owned and franchised cannabis retail store count will increase to 219 [2]. - The transaction is expected to close by the end of the third quarter of 2025, pending customary closing conditions, including court and regulatory approvals [9]. Group 2: Management Statements - SNDL's CEO expressed excitement about expanding the retail network and increasing exposure to a broad consumer base in key Canadian markets [3]. - 1CM's CEO highlighted the opportunity to unlock shareholder value through this transaction and expressed readiness to assist SNDL during the transition [3]. Group 3: Board and Shareholder Support - The 1CM Board unanimously approved the agreement, deeming it in the best interests of 1CM and fair to its shareholders [4]. - Directors and senior officers of 1CM holding shares have committed to vote in favor of the transaction, representing approximately 12.9% of the issued and outstanding shares [6]. Group 4: Financial Considerations - Valuracion Appraisal & Consulting Services Ltd. provided an opinion that the purchase price is fair from a financial perspective for 1CM shareholders [5]. - 1CM anticipates returning a substantial portion of the sale proceeds to shareholders and using the remainder for developing new locations and general corporate purposes [9].