News

SNDL purchase of retail stores falls through

Published on July 22, 2026 by Pat Bulmer

Photo: Contributed

SNDL is cancelling its planned purchase of 27 retail stores in Ontario.

Last year, the Edmonton-based cannabis and liquor company announced a deal to buy 32 stores from 1CM for $32.2 million.

The sale of five stores in Alberta and Saskatchewan went ahead, but regulatory hurdles were said to be holding up the Ontario portion of the deal.

“SNDL has advised that due to a prolonged regulatory review process that has extended beyond the commercially reasonable timelines contemplated by the parties, it will be unable to obtain the required regulatory approvals necessary to complete the second stage of the transaction,” 1CM said in a news release.

“As a result of the delayed regulatory approvals, the acquisition of the Ontario assets by SNDL is not expected to proceed and 1CM expects to be paid a termination fee from SNDL of $250,000.”

The Ontario stores were to be sold for about a $1 million apiece.

1CM said it will continue to operate the Ontario stores under the Cost Cannabis and T Cannabis banners.

1CM said its retail operations are performing well: “Based on April 2026 results, 1CM’s retained retail network is generating annualized revenue of approximately $69.4 million and annualized gross profit of approximately $11.3 million.

“1CM is currently developing additional retail locations and expects to add approximately 10 new stores during 2026, which management believes could increase annualized revenue toward $100 million once operational.”

SNDL said the money that was going to go to 1CM will now be used in a share repurchase program.

SNDL has repurchased more than 5.5 million shares since March 31, valued at approximately $11.1 million, the company said in its own news release.

“While we were unable to complete the Ontario portion of the transaction, we remain confident in the strength of our retail platform and our ability to deploy capital in ways that generate long-term shareholder value,” said CEO Zach George.