SNDL & 1CM Provide Update Regarding Arrangement

Core Points - SNDL Inc. and 1CM Inc. have entered into an amended and restated arrangement agreement to acquire 32 cannabis retail stores for a total purchase price of $32.2 million in cash [1][3] Group 1: Transaction Details - The transaction will be completed in two stages: the first closing will involve 5 stores in Alberta and Saskatchewan, while the second closing will involve 27 stores in Ontario [2] - The purchase price for the first closing is set at $5.0 million, and for the second closing at $27.2 million, with the total purchase price remaining unchanged [3] - The deadline for completing the transaction has been extended from December 31, 2025, to May 31, 2026 [2] Group 2: Shareholder and Court Approvals - 1CM's shareholders voted overwhelmingly in favor of the transaction, and a final court order was obtained on June 18, 2025 [4] - A court hearing is scheduled for January 5, 2026, to seek approval for the amendments to the transaction [4] Group 3: Financial Implications - 1CM plans to return a portion of the net proceeds from the transaction to its shareholders after the second closing [5] - The net proceeds from the first closing are expected to cover transaction costs and working capital [5] Group 4: Company Backgrounds - SNDL Inc. is one of the largest vertically integrated cannabis companies in Canada, with a diverse portfolio of retail brands and products [6] - 1CM Inc. operates cannabis and liquor retail locations and aims to continue expanding through organic growth and future mergers and acquisitions [7]