SNDL Cancels Acquisition of Ontario Retail Locations

SNDL announced that the transaction relating to the acquisition of the remaining 1CM Ontario retail locations is not expected to proceed following a prolonged regulatory review process that extended beyond commercially reasonable timelines contemplated by the parties.The provincial regulatory approvals required in Ontario to complete the Second Closing will not likely be obtained prior to the outside date of May 31, and as such, the Second Closing is not expected to proceed. SNDL completed the first closing under the A&R Arrangement Agreement, pursuant to which SNDL acquired five cannabis retail stores located in Alberta and Saskatchewan from 1CM. That transaction was completed and remains unaffected by this update. SNDL intends to reallocate the capital previously reserved for the Ontario acquisition toward share repurchases under its existing share repurchase program which authorizes SNDL to repurchase up to $100M of its outstanding common shares through November 20. Under SNDL's current Share Repurchase Program, SNDL has repurchased more than 5.5 million shares since March 31, valued at approximately $11.1M.