Recent Updates
Recently added Catalysts
SNDL Positive Sentiment Score: 75/100

SNDL and Nova Cannabis Complete the Assignment of Dutch Love Stores to Nova Cannabis This news release constitutes a designated news release for the purposes of the prospectus supplement of Nova Cannabis Inc. dated

Key Takeaway: SNDL Inc. and Nova Cannabis Inc. have successfully completed the assignment of rights to operate four Dutch Love stores to Nova Cannabis. This strategic move is anticipated to enhance Nova's expansion into the British Columbia market under the Value Buds banner. In exchange, Nova issued $8.179 million in shares to SNDL, making this transaction a significant step in SNDL's growth strategy. The deal also brings Nova's total store count to 99 and strengthens SNDL's portfolio in the cannabis retail sector.

Market Sentiment Analysis

POSITIVE FACTORS

  • SNDL completes the assignment of Dutch Love stores, enhancing its relationship with Nova Cannabis.
  • The transition to the Value Buds banner marks SNDL's entry into the B.C. market, potentially increasing profitability.
  • The deal significantly boosts Nova's store count to 99, positioning it for smart, value-driven expansion.

Full Press Release Details

SNDL and Nova Cannabis Complete the Assignment
of Dutch Love Stores to Nova Cannabis
This news release constitutes a "designated
news release" for the purposes of the prospectus supplement of Nova Cannabis Inc. dated July 22, 2022, to its short form base shelf
prospectus dated June 27, 2022.
CALGARY, AB, May 9, 2024 /CNW/ - SNDL Inc. (Nasdaq:
SNDL) ("SNDL") and Nova Cannabis Inc. (TSX: NOVC) ("Nova") today announced that they have completed
the assignment of SNDL's rights to own or operate four Dutch Love stores (the "Dutch Love Stores") to Nova (the "Assignment"),
upon the terms announced on April 1, 2024.
"This is a key step in our strategy for growth
and focus on prime real estate," said Marcie Kiziak, Nova's Chief Executive Officer. "We are excited to transition these stores
to the Value Buds banner, marking our entry into the B.C. market. We are confident that our Value Buds banner is exceptionally well-positioned
to fill a critical gap in the marketplace. This move aligns perfectly with our objective for smart, value-driven expansion."
As consideration for the Assignment, Nova issued to
SNDL $8.179 million of Nova shares based on the 20-day VWAP of the Nova shares on March 28, 2024. The addition of the Dutch Love Stores
brings Nova's total store count to 99 and SNDL's direct and indirect cannabis store count across all retail banners to 188.
McCarthy T trault LLP acted as legal counsel
to SNDL. Bennett Jones LLP acted as legal counsel to Nova.
SNDL is a public company whose shares are traded on
the Nasdaq under the symbol "SNDL." SNDL is the largest private-sector liquor and cannabis retailer in Canada with retail banners
that include Ace Liquor, Wine and Beyond, Liquor Depot, Value Buds, Spiritleaf, and Firesale Cannabis. SNDL is a licensed cannabis producer
and one of the largest vertically integrated cannabis companies in Canada specializing in low-cost biomass sourcing, premium indoor cultivation,
product innovation, low-cost manufacturing facilities, and a cannabis brand portfolio that includes Top Leaf, Contraband, Citizen
Stash, SNDL Cannabis, Palmetto, Bon Jak, Spiritleaf Selects, Versus Cannabis, Value Buds, Vacay, Grasslands and Superette. SNDL's investment
portfolio seeks to deploy strategic capital through direct and indirect investments and partnerships throughout the North American cannabis
For more information on SNDL, please go to www.sndl.com.
ABOUT NOVA CANNABIS INC.
Nova Cannabis Inc. (TSX: NOVC) is one of Canada's
largest and fastest-growing cannabis retailers with a goal of disrupting the cannabis retail market by offering a wide range of high-quality
cannabis products at every-day best value prices. Nova currently owns and/or operates 100 locations across Alberta, Ontario, British Columbia
and Saskatchewan, primarily under its "Value Buds" banner.
Additional information about Nova Cannabis Inc. is
available at www.sedarplus.ca and Nova's website at www.novacannabis.ca.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2024/09/c2925.html
For further information: Sophie Pilon, SNDL Inc., O: 1.587.327.2017,
CNW 05:30e 09-MAY-24

Frequently Asked Questions

What stores did SNDL assign to Nova Cannabis?

SNDL assigned four Dutch Love stores to Nova Cannabis as part of their agreement.

How many stores does Nova Cannabis have after the assignment?

With the assignment, Nova's total store count increases to 99 locations.

What did Nova Cannabis issue as consideration for the assignment?

Nova issued SNDL $8.179 million in shares based on their recent valuation.

What is the focus of Nova's expansion strategy?

Nova aims for smart, value-driven growth and targets the B.C. market.

Who were the legal counsels for SNDL and Nova?

McCarthy Tétrault LLP counselled SNDL, while Bennett Jones LLP represented Nova.

Last updated: May 9, 2024