Nova Cannabis rises on deal with SNDL

Nova Cannabis

21/12/2022 16:57

** Shares of Nova Cannabis  NOVC.TO  jump as much as 42.17%
to C$1.18, the highest in over four months
    ** SNDL, a liquor and cannabis retailer in Canada, and NOVC
enter into a deal that provides Nova with a low-cost operating
retail platform  urn:newsml:reuters.com:*:nPn8g8757a
    ** Nova says C$15 mln ($11.02 mln) revolving credit facility
is to be eliminated by SNDL
    ** SNDL plans to reduce its equity ownership in Nova to
below 20%, enabling Nova to scale its operations with direct
ownership of cannabis retail stores in Ontario and British
Columbia
    ** SNDL up 3% at $2.12
    ** Deal expected to be completed in May 2023
    ** NOVC down 61.6%, while SNDL falls 63.3% so far this year
($1 = 1.3613 Canadian dollars)
 (Reporting by Arunima Kumar in Bengaluru)
 ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94))