Nova Comments on Plan of Arrangement involving Alcanna and Sundial Growers

EDMONTON, AB, Jan. 7, 2022 /CNW/ - Nova Cannabis Inc. (the "Company" or "Nova") (TSX: NOVC) today issued comments following Alcanna Inc.'s ("Alcanna") (TSX: CLIQ) Special Meeting of Shareholders on January 7, 2022 (the "Meeting") to pass a Plan of Arrangement (the "Arrangement") whereby Sundial Growers Inc. ("Sundial") (NASDAQ: SNDL) would acquire all of the issued and outstanding common shares of Alcanna, Nova's majority shareholder. At the Meeting, the Arrangement was approved by the requisite number of votes and as a result, Sundial can proceed with its agreement to acquire Alcanna including its majority shareholder position in Nova.

"Sundial's financial depth and available capital, demonstrated commitment to cannabis and cannabis retail, and strong support for our value-focused business model makes Sundial a compelling partner as we enter our next phase of growth in executing on our disruptive strategy," said Darren Karasiuk, CEO of Nova.

As at the date of this release, Nova's total store count is seventy-four (74) and the Company's revenue continues to grow across the portfolio, inclusive of stores only recently opened or converted. Nova remains committed to its expectation of having two hundred (200) stores opened by the end of 2023.

Nova looks forward to working with Sundial and the provincial regulators to ensure the Company remains fully compliant with the various provincial regulatory frameworks that govern cannabis retailing in Canada and remains committed to continuing to work with all of its Licenced Producer partners and industry stakeholders in providing the products our customers want at every-day low prices.

ABOUT NOVA CANNABIS INC.

Nova Cannabis Inc. (TSX: NOVC) is one of Canada's largest and fastest growing cannabis retailers with a goal to disrupt the cannabis retail market by offering a wide range of high-quality cannabis products at every-day best value prices. The Company currently operates seventy-four (74) locations across Alberta, Ontario and Saskatchewan primarily under its Value Buds banner.

Additional information about Nova Cannabis Inc. is available at www.sedar.com and the Company's website at www.novacannabis.ca.  

FORWARD LOOKING STATEMENTS

This news release contains information that, to the extent that they are not historical fact, may constitute "forward-looking information" or "forward looking statements" within the meaning of applicable securities legislation (collectively "forward-looking statements").  Forward-looking statements are typically, but not always, identified by the use of words such as "continue", "anticipate", "will", "expect", "project", "to be", "objective", "should", "plan", "intention", and similar words, including negatives thereof, or other similar expressions concerning matters that are not historical facts. All statements and information other than statements of historical fact contained in this news release are forward-looking statements.

With respect to forward-looking statements contained in this news release, the Company has made assumptions regarding, among other things: the Company's ability to identify locations for, construct and open, new stores and the costs related thereto; the availability of hardware and equipment for those stores; government regulations and applicable laws will not change in a manner adverse to the Company; receipt of necessary regulatory approvals to open new stores; the Company's ability to obtain leases for new sites and attract the necessary personnel to operate new stores; demand for the products the Company sells; other factors that will drive sales growth in the Value Buds banner; availability of acquisition opportunities; sustainability of competitors' businesses and competition in the retail cannabis industry, including from the illicit cannabis market; consumer demands; and factors that influence consumer behaviour.

Although the Company believes the expectations reflected in the forward-looking-statements, and the assumption on which such forward-looking statement are made, are reasonable, especially given the unprecedented uncertainty of the full extent and impact of COVID-19, there can be no assurance that such expectations and assumptions will prove to be correct. Readers should not place undue reliance on forward-looking-statements included in this news release. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that may cause actual performance and financial results to differ materially from any estimates, forecasts or projections. These risks and uncertainties include, among other things, the duration and severity of the COVID-19 pandemic on the business, operations and financial condition of the Company; the risk that Nova will be unable to execute its strategic plan and growth strategy as planned without significant adverse impacts from various factors beyond its control; dependence on suppliers; potential delays or changes in plans with respect to capital expenditures and the availability of capital on acceptable terms; risks inherent in the retail cannabis industry; competition for, among other things, customers, supply, capital and skilled personnel; changes in labour costs and markets; incorrect assessments of the value of acquisitions; general economic and political conditions in Canada (including Alberta, Saskatchewan and Ontario), and globally; industry conditions, including changes in government regulations; fluctuations in foreign exchange or interest rates; unanticipated operating events; failure to obtain regulatory and third-party consents and approval when required; changes in tax and other laws that affect us and our shareholders; the potential failure of counterparties to honour their contractual obligations; stock market volatility; and the other factors described in the Company's public filings available at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking statements contained in this news release are made as of the date hereof. Except as expressly required by applicable securities legislation, Nova does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

SOURCE Nova Cannabis Inc.

Darren Karasiuk, Chief Executive Officer Nova Cannabis Inc., [phone], [email protected]