Alcanna Completes the Previously Announced Transaction Regarding Stores in British Columbia and Announces Redemption of Convertible Unsecured Subordinated Debentures

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.

James Burns, Vice Chair and Chief Executive Officer, Alcanna Inc., [phone]