EDMONTON, AB, Oct. 7, 2021 /CNW/ - Nova Cannabis Inc. (the
"Company" or "Nova") (TSX: NOVC) is pleased to
provide comment on today's announcement that Sundial Growers Inc.
("Sundial") (NASDAQ: SNDL) entered into an arrangement
agreement to acquire all of the issued and outstanding common
shares of Alcanna Inc. ("Alcanna") (TSX: CLIQ), Nova's
majority shareholder (the "Transaction").
The Transaction as contemplated is between Sundial and Alcanna
and it is not expected to impact Nova's continued access to the
services provided under the master services agreement
("MSA") between Nova and Alcanna nor the potential to access
debt financing available through the operating line of credit from
Alcanna; both of which were made available to the Company to
support its aggressive growth strategy and both of which survive an
Alcanna change of control.
Alcanna provides Nova, on flat fee basis, a number of
management and administrative services outlined in the MSA between
the two companies. The terms of the MSA with Alcanna
guarantees a continuation of services and service levels until
March 2023, including in the event of a change of control as
the one contemplated in the Transaction.
In addition, the Company currently has access to an operating
line of credit with Alcanna for up to $10
million which also survives an Alcanna change of
Nova is committed to working with Sundial and the provincial
regulators to ensure the Company remains fully compliant with the
various provincial regulatory frameworks that govern cannabis
retailing in Canada and looks
forward to continuing to work with all of its Licenced Producer
partners and industry stakeholders to continue to provide the
products our customers want at every-day low prices.
ABOUT NOVA CANNABIS INC.
Nova is one of Canada's largest
and fastest growing cannabis retailers with a goal to disrupt the
cannabis retail market by offering a wide range of high-quality
cannabis products at every-day best value prices. The Company
currently operates 62 locations across Alberta, Ontario, and Saskatchewan, primarily under its Value Buds
and Nova Cannabis banners. The Company is majority owned by Alcanna
Inc. (TSX: CLIQ). Additional information about Nova Cannabis Inc.
is available at www.sedar.com and the Company's website at
SOURCE Nova Cannabis Inc.