Is SNDL's Acquisition of Zenabis a Good Move for the Company?
SNDL (NASDAQ: SNDL) has been active when it comes to mergers and acquisitions over the past few years. The Canadian cannabis producer has been adding pot shops to its portfolio, and it has even expanded into alcohol. This month, it announced it would be acquiring Zenabis, a cannabis company that filed for creditor protection earlier this year and was previously part of Hexo.
While financial terms were not disclosed, it's likely that SNDL got a deal for the struggling company's assets. Here's a closer look at the deal and why it may or may not pay off for SNDL.
Key to the deal is an indoor growing facility that SNDL will acquire, which CEO Zach George says has "considerable capabilities and proven outcomes, significant monetizable cannabis inventory, and valuable non-core real estate assets." The facility, which is based in New Brunswick, will add to SNDL's growing capacity and has obtained European Union Good Manufacturing Practices (EU GMP) certification, which allows it to ship products to Europe.
Source Fool.com
