Debra BorchardtSNDL Inc. (Nasdaq: SNDL) is buying 32 cannabis retail stores known as Cost Cannabis and T Cannabis in Ontario, Alberta and Saskatchewan from 1CM Inc. (CSE: EPIC) (OTCQB: MILFF) in a deal valued at C$32.2 million. The deal is expected to close by the end of the third quarter of 2025.
According to the statement, the 1CM stores generated an annual revenue of approximately C$53 million in the fiscal year ending Aug. 31, 2024, with 30 active stores at the fiscal year’s end. The acquisition of the 1CM stores will bring SNDL’s total owned and franchised cannabis retail store count to 219. SNDL said in the statement that it paid for the locations in cash.
“We are excited to expand SNDL’s retail network and reinforce our leadership in Canada,” said Zach George, chief executive officer of SNDL. “The addition of these locations will increase 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.”
When 1CM last reported earnings in 2024, it held the licenses required to operate 34 cannabis retail stores and five liquor retail stores across multiple provinces in Canada. The company told its investors that it expects to return a substantial portion of the sale proceeds to shareholders and plans on using the balance of the proceeds for the development of new locations and general corporate purposes.
1CM last reported earnings in November when it delivered C$17.5 million in revenue for the first fiscal quarter of 2025 versus the previous year’s revenue of C$12.3 million. The company attributed the increased revenue to the growth in cannabis retail revenue, which contributed to 91% of the revenue growth. This was due to both new and existing stores, while the remaining 9% was related to the growth of liquor retail revenue. The company also reported a net income for the quarter of C$407,844.
