SNDL-Backed Entity Acquires 56 Parallel Cannabis Locations Across Florida, Texas and Massachusetts
- SNDL, through its Sunstream joint venture, acquired certain Parallel cannabis assets in Florida, Texas, and Massachusetts, including 56 retail locations and three cultivation and manufacturing facilities with about $150 million in annualized revenue.
- SNDL has indirect majority exposure to 66.7% of equity and 69.4% of debt in the acquiring entity and plans to convert this into direct consolidated holdings pending regulatory and accounting approvals.
- The acquisition includes 43 Surterra Wellness dispensaries in Florida, 10 Goodblend locations in Texas, and three New England Treatment Access dispensaries plus cultivation facilities in Massachusetts, expanding SNDL’s retail network across Canada and the U.S. to 249 stores.
- The transaction was completed through a secured creditor foreclosure after Parallel defaulted on a $150 million loan, extinguishing approximately $842 million in Parallel debt and replacing creditor claims with new debt and ownership interests; SNDL’s financial reporting will change only after consolidation steps are completed.
SNDL announced Monday that an entity backed by its Sunstream joint venture has completed the acquisition of certain Parallel cannabis assets in Florida, Texas and Massachusetts.
The transaction includes 56 retail locations and three cultivation and manufacturing facilities generating approximately $150 million in annualized revenue.
Through the deal, SNDL has indirect majority economic exposure equivalent to 66.7% of the acquiring entity’s equity and 69.4% of its debt. The company expects to convert that exposure into direct, consolidated holdings in the coming months, subject to legal, regulatory, accounting and Nasdaq requirements.
If completed, the restructuring could make SNDL one of the first Nasdaq-listed companies to directly consolidate state-licensed medical marijuana operations in the United States. SNDL said adult-use operations, including those in Massachusetts, are expected to remain deconsolidated unless federal law, Nasdaq policies and accounting standards allow otherwise.
The acquired Florida operations include 43 Surterra Wellness dispensaries and a cultivation and production facility totaling approximately 175,000 square feet.
In Texas, the transaction includes 10 Goodblend retail or pickup locations and one cultivation and production facility. Goodblend is one of three active licensed medical marijuana operators in the state.
The Massachusetts operations include three New England Treatment Access dispensaries and a cultivation and production facility comprising approximately 19,600 square feet.
SNDL said the transaction gives it exposure to a cannabis retail network totaling 249 stores across Canada and the United States.
The acquisition was completed through a secured creditor foreclosure following Parallel’s default on a $150 million loan and other debt obligations. The restructuring extinguished approximately $842 million in Parallel debt and replaced certain creditor claims with new debt and ownership interests in the acquiring entity.
SNDL said the closing will not immediately change its financial reporting. Consolidation is expected only after the company completes the steps required to convert its indirect exposure into direct majority ownership and operational control.