SNDL Inc. (NASDAQ: SNDL) dropped in early trading session on Tuesday as the firm has joins hands with Lightbox Enterprises Ltd. to purchase four cannabis retail stores operating under the Dutch Love Cannabis banner. Under the agreement, SNDL will purchase from Lightbox the rights to four Dutch Love stores and the rights to use certain intellectual property related to Dutch Love for a total value of $7.8 million.

As part of the deal, SNDL will acquire the rights to three Dutch Love stores in British Columbia and one store in Ontario. Annual revenue for total assets in 2022 was $11.5 million, with an average gross margin of 36.5%. Completion of the acquisition further solidifies SNDL’s position as a multi-banner cannabis retailer by increasing our market share and increasing exposure to a broader consumer base in two key markets. It is expected to become a thing.

Zach George, CEO of SNDL, said: “We believe we have selected the best performing Dutch Love store in some of the best properties available.With this acquisition, we are partnering with Canada’s finest licensed producers. This opens up new opportunities for Dutch Love to offer high-quality cannabis and experiences to its target buyers.”

The transaction is expected to close in a lightbox proceeding under the Corporate Creditors Arrangement Act of the Supreme Court of British Columbia. On December 2, 2022, the court issued an order approving the sale and investment application process for Lightbox’s assets, businesses and assets. This agreement is the result of the SISP process.

Closing a trade is subject to the usual closing conditions, including regulatory approvals. The transaction is expected to close by the end of May 2023, along with Nova Cannabis Inc’s previously announced restructuring proposal. (TSX: NOVC) and SNDL. The addition of 4 Dutch Love stores as part of Nova Restructuring is expected to bring Nova’s total number of stores to 123.