SNDL Inc. completed the first closing of its acquisition of five cannabis retail stores from 1CM Inc. on January 7 2026, adding locations in Alberta and Saskatchewan to its Value Buds banner.
The deal is part of a two‑stage transaction originally announced on April 9 2025 for 32 stores valued at $32.2 million in cash. The first closing brings five stores into SNDL’s vertically integrated model, while the remaining 27 stores are slated for a second closing in the first half of 2026.
The acquisition expands SNDL’s footprint in Canada’s western provinces, targeting price‑sensitive consumers and reinforcing its strategy to grow the Value Buds brand. By adding 1CM’s Cost Cannabis and T Cannabis locations, SNDL gains access to established customer bases and operational efficiencies that complement its existing retail network.
SNDL’s Q3 2025 results showed revenue of $244.2 million and a gross margin of 26.3%, a slight decline of 0.3 percentage points from the prior year largely due to non‑cash inventory adjustments in its cannabis operations segment. The retail segment generated $85 million in revenue and $9.1 million in profit, underscoring the importance of retail growth to the company’s overall profitability.
CEO Zach George said the acquisition “increases SNDL’s exposure to a broad consumer base in key Canadian markets and aligns with our stated capital priorities as we build a sustainable cannabis retail portfolio at scale.” The move also positions SNDL to benefit from industry consolidation, as larger operators acquire smaller chains to achieve economies of scale.
With a debt‑free balance sheet and substantial cash reserves, SNDL is well positioned to absorb the costs of integrating the new stores while maintaining its focus on margin expansion and operational leverage across its cannabis, liquor, and retail brands.
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