Canadian cannabis company Sundial to acquire Inner Spirit in cash-and-stock deal valued at C$131 million

Canadian cannabis company Sundial Growers Inc.
SNDL,
-4.57%
said Wednesday it has reached an agreement to acquire Inner Spirit Holdings Ltd.
INSHF,
-4.18%
ISH,
-5.88%,
a retailer and franchisor of Spiritleaf recreational cannabis stores across Canada, in a cash and stock deal valued at about C$131 million ($106.7 million). Under the terms of the deal, Inner Spirit shareholders will receive 30 cents in cash and 0.0835 of a Sundial common share for each share owned, equal to 39 cents per share. That represents a premium of 54.8% over the 10-day volume-weighted average price of Inner Spirit shares on the Canadian Securities Exchange, and a premium of 62.5% over its closing price on Tuesday. The deal is expected to close early in the third quarter. Both companies are microstocks; Sundial closed at 79 cents on Tuesday, while Inner Spirit closed at 20 cents. Inner Spirit has 86 stores in British Columbia, Alberta, Saskatchewan, Ontario, and Newfoundland and Labrador. U.S.-listed shares of Sundial, which once had a $1 billion valuation, , were up 3% premarket.