EDMONTON, AB, April 1, 2021 /CNW/ - Further to its news
release dated February 16, 2021,
Alcanna Inc. (the "Company" or "Alcanna") (TSX: CLIQ)
today announces the successful closing of the Company's sale (the
"Transaction") of nineteen (19) convenience-format liquor
stores in British Columbia to
Otter Home and Farm Co-operative ("Otter Co-op").
The total purchase price was approximately $81.0 million, inclusive of inventory and other
assets. Alcanna received approximately $80.1 million on closing and anticipates
receiving up to an additional $0.9
million prior to the end of May, 2021 as part of the
post-closing price adjustments. The stores will continue to
be operated under the Liquor Depot banner for a period as part of
the transitional services provided by the Company.
Redemption of 4.70% Convertible Debentures
The Company announced today that it has sent a notice to
Computershare Trust Company of Canada, as debenture trustee under the third
supplemental indenture dated as of September
29, 2016 between the Company and Computershare Trust Company
of Canada, that Alcanna will
redeem the entire aggregate principal amount of $77,625,000 of its outstanding 4.70% convertible
unsecured subordinated debentures due January 31, 2022 and having a conversion price of
$14.60 per common share, which are
listed for trading on the Toronto Stock Exchange under the symbol
"CLIQ.DB" (the "Debentures") in accordance with the terms of
the Debentures.
The Debentures will be redeemed on May 4,
2021 (the "Redemption Date"). The total redemption
amount payable for each $1,000
principal amount of the Debentures will equal a redemption price of
$1,000 plus all accrued and unpaid
interest up to but excluding the Redemption Date, being
approximately $11.98 for each
$1,000 principal amount (less any
taxes required to be deducted or withheld) (collectively, the
"Redemption Price").
Alcanna will satisfy its obligation to pay to the holders of
Debentures the Redemption Price in cash through available funds,
primarily from the Transaction proceeds.
Beneficial holders of debentures should contact their investment
dealer if they have any questions about the redemption. The
interest upon the principal amount of Debentures called for
redemption will cease to be payable from and after the Redemption
Date.
A full description of the redemption process is set out in the
Indenture dated as of December 21,
2007 and the Third Supplemental Indenture dated as of
September 29, 2016. All of the
foregoing documents are available under Alcanna's SEDAR profile at
www.sedar.com.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities in any
jurisdiction.
ABOUT ALCANNA INC.
Alcanna is one of the largest private sector retailers of
alcohol in North America and the
largest in Canada by number of
stores – operating 177 locations in Alberta and British
Columbia. The Company's majority-owned subsidiary, Nova
Cannabis Inc. (TSXV: NOVC), also operates 53 cannabis retail stores
in Alberta, Ontario, and Saskatchewan
Alcanna's common shares and convertible subordinated debentures
trade on the Toronto Stock Exchange under the symbols "CLIQ" and
"CLIQ.DB", respectively.
Additional information about Alcanna Inc. is available at
www.sedar.com and the Company's website at www.alcanna.com.
SOURCE Alcanna Inc.