Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information [Line Items] | |
Document Type | 40-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | SNDL Inc. |
Entity Central Index Key | 0001766600 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Incorporation, State or Country Code | A0 |
Entity Primary SIC Number | 2833 |
Entity Common Stock, Shares Outstanding | 262,775,853 |
Entity Emerging Growth Company | false |
Entity Interactive Data Current | Yes |
Title of 12(b) Security | Common Shares, no par value |
Trading Symbol | SNDL |
Security Exchange Name | NASDAQ |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity File Number | 001-39005 |
Entity Address, State or Province | AB |
Entity Address, Address Line One | #300, 919 |
Entity Address, Address Line Two | 11 Avenue SW |
Entity Address, City or Town | Calgary |
Entity Address, Postal Zip Code | T2R 1P3 |
City Area Code | 403 |
Local Phone Number | 948-5227 |
Entity Address, Country | CA |
Document Annual Report | true |
Document Registration Statement | false |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction Flag | false |
Auditor Name | Marcum |
Auditor Location | New York, New York, United States |
Auditor Firm ID | 688 |
Business Contact | |
Document Information [Line Items] | |
Entity Address, State or Province | NY |
Entity Address, Address Line One | 19 West 44th Street |
Entity Address, Address Line Two | Suite 200 |
Entity Address, City or Town | New York |
Entity Address, Postal Zip Code | 10036-8401 |
City Area Code | 877 |
Local Phone Number | 374 6010 |
Contact Personnel Name | Corporation Service Company |
Consolidated Statements of Fina
Consolidated Statements of Financial Position $ in Thousands, $ in Millions | Dec. 31, 2023 CAD ($) | Dec. 31, 2022 CAD ($) |
Current assets | ||
Cash and cash equivalents | $ 195,041 | $ 279,586 |
Restricted cash | 19,891 | 19,338 |
Marketable securities | 225 | 21,926 |
Accounts receivable | 27,059 | 22,636 |
Biological assets | 429 | 3,477 |
Inventory | 129,060 | 127,782 |
Prepaid expenses and deposits | 22,464 | 10,110 |
Investments | 3,400 | 6,552 |
Assets held for sale | 6,375 | 6,375 |
Net investment in subleases | 2,970 | 3,701 |
Current assets | 406,914 | 501,483 |
Non-current assets | ||
Long-term deposits and receivables | 4,837 | 8,584 |
Right of use assets | 129,679 | 134,154 |
Property, plant and equipment | 152,916 | 143,409 |
Net investment in subleases | 18,396 | 19,618 |
Intangible assets | 73,149 | 74,885 |
Investments | 29,660 | 90,702 |
Equity-accounted investees | 538,331 | 519,255 |
Goodwill | 119,282 | 67,260 |
Total assets | 1,473,164 | 1,559,350 |
Current liabilities | ||
Accounts payable and accrued liabilities | 68,210 | 48,153 |
Current lease liabilities | 30,537 | 30,206 |
Derivative warrants | 4,400 | 11,002 |
Current liabilities | 103,147 | 89,361 |
Non-current liabilities | ||
Lease liabilities | 136,492 | 139,625 |
Other liabilities | 4,185 | 2,709 |
Total liabilities | 243,824 | 231,695 |
Shareholders’ equity | ||
Share capital | 2,375,950 | 2,292,810 |
Warrants | 2,260 | 2,260 |
Contributed surplus | 73,014 | 68,961 |
Contingent consideration | 2,279 | 2,279 |
Accumulated deficit | (1,260,851) | (1,091,999) |
Accumulated other comprehensive income | 19,417 | 32,188 |
Total shareholders’ equity | 1,212,069 | 1,306,499 |
Non-controlling interest | 17,271 | 21,156 |
Total liabilities and shareholders’ equity | $ 1,473,164 | $ 1,559,350 |
Consolidated Statements of Loss
Consolidated Statements of Loss and Comprehensive Loss - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Statement of comprehensive income [abstract] | |||
Gross revenue | $ 957,725 | $ 729,694 | |
Excise taxes | 48,719 | 17,497 | |
Net revenue | 909,006 | [1] | 712,197 |
Cost of sales | 689,338 | 558,089 | |
Inventory impairment and obsolescence | 30,644 | 7,012 | |
Gross profit before fair value adjustments | 189,024 | 147,096 | |
Change in fair value of biological assets | (7,936) | (1,309) | |
Change in fair value realized through inventory | 9,327 | (5,412) | |
Gross profit | 190,415 | 140,375 | |
Interest and fee revenue | 14,517 | 16,739 | |
Investment loss | (9,258) | (65,164) | |
Share of profit (loss) of equity-accounted investees | 6,758 | (43,002) | |
General and administrative | 199,725 | 140,168 | |
Sales and marketing | 15,045 | 8,417 | |
Research and development | 324 | 2,448 | |
Depreciation and amortization | 60,216 | 40,945 | |
Share-based compensation | 15,400 | 9,671 | |
Restructuring costs (recovery) | 19,573 | (670) | |
Asset impairment | 54,967 | 196,033 | |
Gain on cancellation of contracts | 0 | (290) | |
Operating loss | (162,818) | (347,774) | |
Transaction costs | (3,718) | (1,352) | |
Finance costs, net | (11,362) | (41,314) | |
Change in estimate of fair value of derivative warrants | 6,602 | 10,783 | |
Foreign exchange loss | (367) | (19) | |
Loss on disposition of assets | (353) | (94) | |
Loss before income tax | (172,016) | (379,770) | |
Income tax recovery | 0 | 7,342 | |
Net loss from continuing operations | (172,016) | (372,428) | |
Net loss from discontinued operations | (4,535) | ||
Net loss | (176,551) | (372,428) | |
Equity-accounted investees - share of other comprehensive income, net of tax | (12,771) | 24,581 | |
Comprehensive loss | (189,322) | (347,847) | |
Net loss from continuing operations attributable to: | |||
Owners of the company | (172,660) | (335,114) | |
Non-controlling interest | (3,891) | (37,314) | |
Net loss from continuing operations | (172,016) | (372,428) | |
Net income (loss) attributable to: | |||
Owners of the company | (168,125) | (335,114) | |
Non-controlling interest | (3,891) | (37,314) | |
Net loss | (176,551) | (372,428) | |
Comprehensive income (loss) attributable to: | |||
Owners of the company | (185,431) | (310,533) | |
Non-controlling interest | (3,891) | (37,314) | |
Comprehensive loss | $ (189,322) | $ (347,847) | |
Net loss per common share attributable to owners of the company | |||
Basic net loss per common share attributable to owners of the Company | $ (0.67) | $ (1.46) | |
Diluted net loss per common share attributable to owners of the Company | $ (0.67) | $ (1.46) | |
[1] The Company has eliminated $ 46.9 million of cannabis operations revenue and equal cost of sales associated with sales to provincial boards that are expected to be subsequently repurchased by the Company’s licensed retailer subsidiaries for resale, at which point the full retail sales revenue will be recognized. The elimination was recorded in the Corporate segment. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - CAD ($) $ in Thousands | Total | Share Capital | Warrants | Contributed Surplus | Contingent Consideration | Accumulated Deficit | Accumulated Other Comprehensive income | Non-controlling interests [member] |
Beginning balance at Dec. 31, 2021 | $ 1,329,533 | $ 2,035,704 | $ 8,092 | $ 60,734 | $ 2,279 | $ (785,112) | $ 7,607 | $ 229 |
Net loss for the period | (372,428) | (335,114) | (37,314) | |||||
Other comprehensive income (loss) | 24,581 | 24,581 | ||||||
Share issuances | 2,870 | 2,870 | ||||||
Share repurchases | (13,390) | (41,617) | 28,227 | |||||
Share issuances by subsidiaries | 115 | 72 | 43 | |||||
Acquisition | 345,351 | 287,129 | 58,222 | |||||
Warrants expired | (5,832) | 5,832 | ||||||
Share-based compensation | 11,047 | 11,047 | ||||||
Employee awards exercised | 8,724 | (8,724) | ||||||
Distribution declared by subsidiaries | (24) | (24) | ||||||
Ending balance at Dec. 31, 2022 | 1,327,655 | 2,292,810 | 2,260 | 68,961 | 2,279 | (1,091,999) | 32,188 | 21,156 |
Net loss for the period | (176,551) | (172,660) | (3,891) | |||||
Other comprehensive income (loss) | (12,771) | (12,771) | ||||||
Share issuances | 1,900 | 1,900 | ||||||
Share repurchases | (1,536) | (5,344) | 3,808 | |||||
Share issuances by subsidiaries | 51 | 25 | 26 | |||||
Acquisition | 84,555 | 83,953 | 602 | |||||
Shares acquired and cancelled | (6,879) | (6,879) | ||||||
Share-based compensation | 12,936 | 12,936 | ||||||
Employee awards exercised | 9,510 | (9,510) | ||||||
Distribution declared by subsidiaries | (20) | (20) | ||||||
Ending balance at Dec. 31, 2023 | $ 1,229,340 | $ 2,375,950 | $ 2,260 | $ 73,014 | $ 2,279 | $ (1,260,851) | $ 19,417 | $ 17,271 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating activities | ||
Net loss for the period | $ (176,551) | $ (372,428) |
Adjustments for: | ||
Income tax recovery | 0 | (7,342) |
Interest and fee revenue | (14,517) | (16,739) |
Change in fair value of biological assets | 7,936 | 1,309 |
Share-based compensation | 15,400 | 9,671 |
Depreciation and amortization | 64,946 | 47,322 |
Loss on disposition of assets | 353 | 94 |
Inventory impairment and obsolescence | 30,644 | 7,012 |
Finance costs, net | 11,362 | 41,314 |
Change in estimate of fair value of derivative warrants | (6,602) | (10,783) |
Unrealized foreign exchange gain | (13) | (16) |
Transaction costs | 1,221 | 0 |
Asset impairment | 54,967 | 196,033 |
Share of (profit) loss of equity-accounted investees | (6,758) | 43,002 |
Realized loss on settlement of marketable securities | 138,874 | 0 |
Unrealized (gain) loss on marketable securities | (129,616) | 65,553 |
Additions to marketable securities | 0 | (3,500) |
Proceeds from settlement of marketable securities | 6,704 | 0 |
Income distributions from equity-accounted investees | 0 | 1,661 |
Interest received | 13,563 | 13,403 |
Exercise of cash-settled deferred share units | 0 | (204) |
Change in non-cash working capital | (32,875) | (22,073) |
Net cash used in operating activities from continuing operations | (20,962) | (6,711) |
Net cash provided by operating activities from discontinued operations | 4,314 | 0 |
Net cash used in operating activities | (16,648) | (6,711) |
Investing activities | ||
Additions to property, plant and equipment | (7,845) | (10,666) |
Additions to intangible assets | (87) | (197) |
Additions to investments | (732) | (75,598) |
Additions to equity-accounted investees | (25,089) | (119,137) |
Proceeds from disposal of property, plant and equipment | 1,213 | 4,000 |
Acquisitions, net of cash acquired | 3,695 | (28,640) |
Change in non-cash working capital | 4,028 | 74 |
Net cash used in investing activities from continuing operations | (24,817) | (230,164) |
Net cash used in investing activities from discontinued operations | 0 | 0 |
Net cash used in investing activities | (24,817) | (230,164) |
Financing activities | ||
Change in restricted cash | (553) | 7,675 |
Payments on lease liabilities, net | (41,013) | (27,693) |
Repurchase of common shares, net of costs | (1,536) | (13,390) |
Proceeds from issuance of shares, net of costs | 0 | 22 |
Distributions declared by subsidiaries | (20) | (24) |
Repayment of long-term debt | 0 | (10,000) |
Change in non-cash working capital | 42 | 1,620 |
Net cash used in financing activities from continuing operations | (43,080) | (41,790) |
Net cash used in financing activities from discontinued operations | 0 | 0 |
Net cash used in financing activities | (43,080) | (41,790) |
Change in cash and cash equivalents | (84,545) | (278,665) |
Cash and cash equivalents, beginning of period | 279,586 | 558,251 |
Cash and cash equivalents, end of period | $ 195,041 | $ 279,586 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2023 | |
Description Of Business [Abstract] | |
Description of Business | 1. Description Of Business SNDL Inc. (“SNDL” or the “Company”) was incorporated under the Business Corporations Act (Alberta) on August 19, 2006. On July 25, 2022, the Company’s shareholders approved a special resolution amending the articles of SNDL to change the name of the Company from “Sundial Growers Inc.” to “SNDL Inc.”. The Company’s head office is located at 300, 919 11th Avenue SW, Calgary, Alberta, Canada. The principal activities of the Company are the retailing of wines, beers and spirits, the operation and support of corporate-owned and franchise retail cannabis stores in Canadian jurisdictions where the private sale of recreational cannabis is permitted, the manufacturing of cannabis products providing proprietary cannabis processing services, the production, distribution and sale of cannabis domestically and for export pursuant to the Cannabis Act (Canada) (the “Cannabis Act”), and the deployment of capital to investment opportunities. The Cannabis Act regulates the production, distribution, and possession of cannabis for both medical and adult recreational access in Canada. The Company also owns approximately 63% of Nova Cannabis Inc. (“Nova”) (TSX: NOVC), whose principal activities are the retail sale of cannabis. SNDL and its subsidiaries operate solely in Canada. Through its joint venture, SunStream Bancorp Inc. (“SunStream”) (note 19), the Company provides growth capital that pursues indirect investment and financial services opportunities in the cannabis sector, as well as other investment opportunities. The Company also makes strategic portfolio investments in debt and equity securities. The Company’s common shares trade on the Nasdaq Capital Market under the ticker symbol “SNDL”. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Basis Of Presentation [Abstract] | |
Basis of Presentation | 2. Basis of presentation A) Statement of compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) and interpretations of the International Financial Reporting Interpretations Committee in effect as of December 31, 2023. These consolidated financial statements were approved and authorized for issue by the board of directors of SNDL (the “Board”) on March 20, 2024. B) Basis of measurement These consolidated financial statements have been prepared on a historical cost basis, except for biological assets, deferred share units (“DSUs”) and certain financial instruments (note 34(a)) which are measured at fair value with changes in fair value recorded in profit or loss. C) Functional and presentation currency These consolidated financial statements are presented in Canadian dollars, which is the functional currency of the Company and its Canadian-based subsidiaries. The Company’s equity-accounted joint venture uses the United States dollar as its functional currency. Transactions in currencies other than the functional currency are translated at the rate prevailing at the date of transaction. Monetary assets and liabilities that are denominated in foreign currencies are translated at the rate prevailing at each reporting date. Income and expense amounts are translated at the dates of the transactions. In preparing the Company’s consolidated financial statements, the financial statements of foreign subsidiaries and the foreign equity-accounted joint venture are translated into Canadian dollars, the presentation currency of the Company. The assets and liabilities of foreign operations that do not have a functional currency of Canadian dollars, are translated into Canadian dollars using exchange rates at the reporting date. Revenues and expenses of foreign operations are translated into Canadian dollars using foreign exchange rates that approximate those on the date of the underlying transactions. Foreign exchange differences from the translation of foreign subsidiaries and the foreign equity-accounted joint venture into Canadian dollars are recognized in other comprehensive income (“OCI”). The Company’s consolidated financial statements include its share of the Canadian dollar profit or loss and OCI of the equity-accounted joint venture. D) Basis of consolidation Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly and indirectly, to govern the financial and operating policies of an entity and be exposed to the variable returns from its activities. The financial statements of subsidiaries are included in these consolidated financial statements from the date that control commences until the date that control ceases. All intercompany balances, income and expenses and unrealized gains and losses resulting from intercompany transactions are eliminated upon consolidation. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 3. Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements. CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash on hand, deposits held with banks and other short-term liquid investments with maturities of less than 90 days. RESTRICTED CASH Restricted cash is recorded as current assets representing minimum funding requirements for two separate captive insurance structures. BIOLOGICAL ASSETS The Company’s biological assets consist of cannabis plants. The Company capitalizes all direct and indirect costs related to the biological transformation of the biological assets between the point of initial recognition and the point of harvest, including labour-related costs, consumables, materials, utilities, facilities costs, depreciation and quality and testing costs. Biological assets are then recorded at fair value and consist of cannabis plants in various stages of vegetation, including cannabis clones which have not been harvested. Net unrealized changes in fair value of biological assets less costs to sell during the period are included in the results of operations for the related period. Biological assets are valued in accordance with International Accounting Standard 41 – Agriculture (“IAS 41”) and are presented at their fair values less costs to sell up to the point of harvest. The fair values are determined using a model which estimates the expected harvest yield in grams for plants currently being cultivated, and then adjusts the amount for the expected selling price less costs to produce and sell per gram. The fair value measurements for biological assets have been categorized as Level 3 fair values based on the inputs to the valuation technique used. The Company’s method of accounting for biological assets attributes value accretion on a straight-line basis throughout the life of the biological asset from initial cloning to the point of harvest. The estimated expected harvest yield is based on assumptions of the estimated yield per plant and the weighted average number of growing weeks completed as a percentage of total expected growing weeks as at year end. These estimates are subject to volatility in market prices, market conditions, yields and costs, which could significantly affect the fair value of biological assets in future periods. Differences from the anticipated yield will be reflected in the net change in fair value of biological assets in future periods. INVENTORY Procured cannabis Inventory is valued at the lower of cost and net realizable value. Cost of cannabis and biomass is comprised of initial third-party acquisition costs, plus analytical testing costs. Costs of extracted cannabis, hemp oil and finished goods inventory are comprised of initial acquisition cost of the biomass and all direct and indirect processing costs including labour-related costs, consumables, materials, packaging supplies, utilities, facility costs, analytical testing costs and production-related depreciation. Net realizable value is determined as the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to make the sale. Packaging and supplies are initially valued at cost and subsequently at the lower of cost and net realizable value. Harvested cannabis Inventories of harvested cannabis are valued at the lower of cost and net realizable value. Inventories of harvested cannabis are transferred from biological assets at their fair value less costs to sell up to the point of harvest, which becomes the initial deemed cost. All subsequent direct and indirect post-harvest costs are capitalized to inventory as incurred, including labour-related costs, consumables, materials, packaging supplies, utilities, facilities costs, as well as quality and testing costs. Net realizable value is determined as the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Cannabis supplies and consumables are initially valued at cost and subsequently at the lower of cost and net realizable value. The valuation of biological assets at the point of harvest is used as the measurement basis for all cannabis-based inventory and, thus, any critical estimates and judgements related to the valuation of biological assets are also applicable to inventory. The valuation of work-in-progress and finished goods also requires the estimate of conversion costs incurred, which become part of the carrying amount of the inventory. Retail inventory Retail inventory at Company-owned stores is valued at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of selling the final product. Cost is determined using the weighted average method and comprises direct purchase costs. Inventory is written down to its net realizable value when the cost of inventory is estimated to be unrecoverable due to obsolescence, damage or declining selling prices. The Company makes estimates related to obsolescence, future selling prices, seasonality, customer behavior and fluctuations in inventory levels. PROPERTY, PLANT, AND EQUIPMENT Property, plant and equipment (“PP&E”) are carried at cost less accumulated depreciation, less any recognized impairment losses. The cost of additions, betterments, renewals, and interest during construction is capitalized. Each part of a component of PP&E with a cost that is significant in relation to the total cost of the component is depreciated separately. When the cost of replacing a portion of a component of PP&E is capitalized, the carrying amount of the replaced component is derecognized. Depreciation of construction in progress assets commences at the later of the assets being ready for their intended use or when a Health Canada producer’s licence is granted. The assets’ residual values and useful lives are reviewed, and adjusted as appropriate, at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by adjusting the depreciation period or method, as appropriate, and are treated as changes in accounting estimates. Any gain or loss arising on the disposal or retirement of a component of PP&E is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognized in profit and loss. PP&E are depreciated as they become available for use. Buildings are not depreciated until a producer’s licence is obtained, if required for operation. For assets available for use, depreciation is computed using the straight-line method over the estimated useful lives of the assets, as described below: • Production facilities — 20 years • Equipment — 1 to 10 years • Right of use assets and leasehold improvements — Shorter of estimated useful life or lease term LEASES A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. As a lessee The Company recognizes a right of use asset and a lease liability at the lease commencement date. The right of use asset is initially measured at cost and any direct costs of obtaining the lease, and subsequently at cost less any accumulated depreciation and impairment losses and adjusted for certain remeasurements of the lease liability. Depreciation is recognized on the lease asset over the shorter of the estimated useful life of the asset or the lease term. The lease liability is initially measured at the present value of the lease payments that have not been paid at the commencement date, discounted at the rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. Lease payments are allocated between the liability and accretion expense. Accretion expense is recognized on the lease liability using the effective interest rate method and payments are applied against the lease liability. The carrying amounts of the right of use assets, lease liability, and the resulting interest and depreciation expense are based on the implicit interest rate within the lease arrangement or, if this information is unavailable, the incremental borrowing rate. Incremental borrowing rates are based on judgements including economic environment, term, and the underlying risk inherent to the asset. As a lessor When the Company acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease. To classify each lease, the Company makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. Under a finance lease, the Company recognizes a receivable at an amount equal to the net investment in the lease which is the present value of the aggregate of lease payments receivable by the lessor. Under an operating lease, the Company recognizes lease payments received as income on a straight-line basis over the lease term. When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right of use asset arising from the head lease, not with reference to the underlying asset. INTANGIBLE ASSETS Intangible assets are recorded at cost less accumulated amortization and impairment losses, if any. Intangible assets acquired in a business combination are measured at fair value at the acquisition date. Amortization of definite life intangibles is provided on a straight-line basis over their estimated useful lives, once the intangible asset is available for use. If the intangible asset is not yet available for use it will be tested for impairment on an annual basis in accordance with International Accounting Standard 38 – Intangible Assets (“IAS 38”). Joint arrangements Joint arrangements represent activities where the Company has joint control established by a contractual agreement. Joint control requires unanimous consent for the relevant financial and operational decisions. A joint arrangement is either a joint operation, whereby the parties have rights to the assets and obligations for the liabilities, or a joint venture, whereby the parties have rights to the net assets. For a joint operation, the parties consolidate their proportionate share of the assets, liabilities, revenues, expenses and cash flows of the arrangement with items of a similar nature on a line-by-line basis, from the date that joint control commences until the date that joint control ceases. Joint ventures are accounted for using the equity method of accounting and are initially recognized at cost, or fair value if acquired as part of a business combination. Joint ventures are adjusted thereafter for the post-acquisition change in the Company's share of the equity accounted investment's net assets. The Company’s consolidated financial statements include its share of the equity accounted investment's profit or loss and other comprehensive income, until the date that joint control ceases. When the Company’s share of losses exceeds its interest in an equity accounted investee, the carrying amount of that interest, including any long-term investments, is reduced to nil, and the recognition of further losses is discontinued except to the extent that the Company has an obligation or has made payments on behalf of the investee. Distributions from and contributions to investments in equity accounted investees are recognized when received or paid. Interests in equity-accounted investees The Company’s interest in equity-accounted investees comprise interests in an associate and a joint venture. Associates are those entities in which the Company has significant influence, but not control or joint control, over the financial and operating policies. A joint venture is an arrangement in which the Company has joint control, whereby the Company has rights to the net assets of the arrangement, rather than rights to assets and obligations for its liabilities. Interests in associates and joint ventures are accounted for using the equity method. They are initially recognized at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Company’s share of the profit or loss and OCI of equity-accounted investees, until the date on which significant influence or joint control ceases. FINANCIAL INSTRUMENTS The Company classifies the fair value of financial instruments according to the following hierarchy based on the amount of observable inputs used to value the instruments: Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 – quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Financial assets and liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. A financial asset or liability is measured initially at fair value plus, for an item not measured at fair value through profit and loss (“FVTPL”), transaction costs that are directly attributable to its acquisition or issuance. (i) Financial assets At initial recognition, a financial asset is classified and measured at: amortized cost, FVTPL or fair value through other comprehensive income (“FVOCI”) depending on the business model and contractual cash flows of the instrument. Financial assets at amortized cost are subsequently measured at amortized cost using the effective interest rate method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Financial assets at FVTPL are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss. Financial assets are derecognized when the rights to receive cash flows from the assets have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership. A substantial modification to the terms of an existing financial asset results in the derecognition of the financial asset and the recognition of a new financial asset at fair value. In the event that the modification to the terms of an existing financial asset do not result in a substantial difference in the contractual cash flows the gross carrying amount of the financial asset is recalculated and the difference resulting from the adjustment in the gross carrying amount is recognized in profit or loss. The Company’s cash and cash equivalents, restricted cash and accounts receivable, are measured at amortized cost. The Company’s marketable securities are measured at FVTPL. The Company’s investments are measured at amortized cost and FVTPL. The Company has no financial assets measured at FVOCI. (ii) Financial liabilities Financial liabilities are initially measured at amortized cost or FVTPL. Accounts payable and accrued liabilities are initially recognized at the amount required to be paid less any required discount to reduce the payables to fair value. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense and foreign exchange gains and losses, are recognized in profit or loss. Financial liabilities are derecognized when the liability is extinguished. A substantial modification of the terms of an existing financial liability is recorded as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of a financial liability extinguished and the consideration paid is recognized in profit or loss. Where a financial liability is modified in a way that does not constitute an extinguishment, the modified cash flows are discounted at the liability’s original effective interest rate. Transaction costs paid to third parties in a modification are amortized over the remaining term of the modified debt. The Company’s accounts payable and accrued liabilities and financial guarantee liability (included in other liabilities) are measured at amortized cost. The Company’s derivative warrant liabilities were designated as FVTPL upon initial recognition. IMPAIRMENT OF ASSETS Management assesses and continually monitors internal and external indicators of impairment relating to the Company’s assets. (i) Financial assets The Company applies an expected credit loss (“ECL”) model to all financial assets not held at FVTPL where credit losses that are expected to transpire in future years are provided for, irrespective of whether a loss event has occurred or not as at the statement of financial position date. For trade receivables, the Company has applied the simplified approach under International Financial Reporting Standard 9 – Financial Instruments (“IFRS 9”) and have calculated ECLs based on lifetime expected credit losses, taking into consideration historical credit loss experience and financial factors specific to the debtors and general economic conditions. ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of the difference between the cash flows due in accordance with the contract and the cash flow the Company expects to receive. ECLs are discounted at the effective interest rate of the financial asset. For financial assets measured at amortized cost, the Company has applied the general approach under IFRS 9 and has calculated ECLs based on lifetime expected credit losses, taking into consideration whether the credit risk of a financial asset has increased significantly since initial recognition. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Company considers quantitative and qualitative information and analysis, based on the Company’s historical experience and informed credit assessment, that includes forward-looking information. (ii) Non-financial assets The carrying amounts of the Company’s PP&E, right of use assets and intangible assets are assessed for impairment indicators and impairment reversal indicators at each reporting period end to determine whether there is an indication that such assets have experienced impairment or impairment reversal. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss or impairment reversal, if any. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s or group of asset’s estimated fair value less costs of disposal and its value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable independent cash inflows (a cash generating unit (“CGU”)). Where an impairment loss is subsequently determined to have reversed, the carrying amount of the asset or CGU is adjusted to the revised estimate of its recoverable amount but limited to the carrying amount that would have been determined had no impairment loss been recognized previously. A reversal of an impairment loss, net of any depreciation that would have been recorded, is recognized immediately in the statements of loss and comprehensive loss. Goodwill is assessed for impairment annually or when facts and circumstances indicate that it might be impaired. Goodwill is tested for impairment at a CGU level by comparing the carrying amount to the recoverable amount, which is determined as the greater of fair value less costs of disposal and value in use. Any excess of the carrying amount over the recoverable amount is the impaired amount. The recoverable amount estimates are categorized as Level 3 according to the fair value hierarchy. Impairment charges are recognized in profit and loss. Goodwill is reported at cost less any accumulated impairment. Goodwill impairments are not reversed. Provisions A provision is recognized when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be reliably estimated. The amount of a provision is the best estimate of the consideration at the end of the reporting period. Provisions measured using estimated cash flows required to settle the obligation are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. A provision for onerous contracts is recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The Company has no onerous contracts during the years ended and as at December 31, 2023 and 2022. NON-MONETARY TRANSACTIONS All non-monetary transactions are measured at the fair value of the asset surrendered or the asset received, whichever is more reliable, unless the transaction lacks commercial substance, or the fair value cannot be reliably established. The lack of commercial substance requirement is met when the future cash flows are expected to change significantly as a result of the transaction. When the fair value of a non-monetary transaction cannot be reliably measured, it is recorded at the carrying amount (after reduction, when appropriate, for impairment) of the asset given up, adjusted by the fair value of any monetary consideration received or given. When the asset received or the consideration given consists of shares in an actively traded market, the value of those shares will be considered fair value. COMPOUND FINANCIAL INSTRUMENTS The liability component of a compound financial instrument is recognized initially at the fair value of a similar liability which does not have an equity conversion option. The equity component is recognized initially as the difference between the fair value of the compound financial instrument taken as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability and equity components in proportion to their initial carrying amounts. Subsequent to initial recognition, the liability component of a compound financial instrument is measured at amortized cost using the effective interest method. The equity component of a compound financial instrument is not re-measured subsequent to initial recognition. Interest and losses and gains relating to the financial liability are recognized in profit and loss. On conversion, the financial liability is reclassified to equity; no gain or loss is recognized on conversion. REVENUE Under International Financial Reporting Standard 15 – Revenue from Contracts with Customers (“IFRS 15”), to determine the amount and timing of revenue to be recognized, the Company follows a five-step model: 1. Identifying the contract with a customer 2. Identifying the performance obligations 3. Determining the transaction price 4. Allocating the transaction price to the performance obligations 5. Recognizing revenue when/as performance obligations are satisfied Cannabis revenue Gross revenue from the direct sale of cannabis for a fixed price is recognized when the Company transfers control of the goods to the customer. The transfer of control is specific to each contract and can range from the point of delivery to a specified length of time for the customer to accept the goods. The Company eliminates cannabis revenue and related cost of sales from sales to provincial boards when it is expected to be subsequently repurchased by its licensed retailer subsidiaries for resale, at which point the full retail sales revenue will be recognized. For contracts that permit the customer to return goods, revenue is recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Therefore, the amount of revenue recognized is adjusted for expected returns, which are estimated based on historical data and management’s expectation of future returns. In these circumstances, a refund liability and a right to recover returned goods asset are recognized. The right to recover returned goods asset is measured at the former carrying amount of the inventory less any expected costs to recover goods. The refund liability is included in accounts payable and accrued liabilities and the right to recover returned goods is included in inventory. The Company reviews its estimate of expected returns at each reporting date and updates the amounts of the asset and liability accordingly. Gross revenue earned in Canada includes excise taxes, which the Company pays as principal, but excludes duties and taxes collected on behalf of third parties. Net revenue is gross revenue less excise taxes. Gross revenue is recognized to the extent that it is highly probable that a significant reversal will not occur. Therefore, gross revenue is stated net of expected price discounts, allowances for customer returns and similar items. Generally, payment of the transaction price is due within credit terms that are consistent with industry practices, with no element of financing. Retail revenue Retail revenue consists of sales through corporate stores and e-commerce operations. Revenue at corporate stores is recognized at the point of sale when the customer takes control of the goods or service and is measured at the amount of consideration to which the Company expects to be entitled to, net of estimated returns, and sales incentives. The Company considers its performance obligations to be satisfied at the point of sale. The Company’s goods and services are generally capable of being distinct and are accounted for as a separate performance obligation. Sales through e-commerce operations are recognized when the customer takes control of the goods or services upon delivery and is measured at the amount of consideration to which the Company expects to be entitled, net of estimated returns, and sales incentives. It is the Company’s policy to sell merchandise with a limited right to return. Returns are only provided through exchanges or the issuance of a gift card. The Company sells gift cards. The sale of a gift card creates a future performance obligation. When (or as) the performance obligation is satisfied, the Company recognizes revenue as the amount of the transaction price. Franchise revenue Franchise fees are recognized at a point in time when the Company satisfies its performance obligations which is determined to be when the franchise begins operations. Performance obligations include site selection, lease assistance and training. Initial franchise fees are allocated to the performance obligations based on the estimated standalone selling prices. Funds received in advance of a franchise starting operations are recorded as franchise fee deposits. Ongoing royalty and advertisement fees, which are determined on a formula basis in accordance with the terms of the relevant franchise agreement, based on monthly revenues or margins of the franchisees, are recognized as revenue when the contractual performance obligations have been achieved or other service-related performance obligations have been completed. The performance obligations relate to providing support to the franchise partners and stewarding the Spiritleaf brand. While the franchisees are operating under the name Spiritleaf, they utilize the Spiritleaf trademark, thereby, the Company has performed its obligations to recognize the revenue, as per the franchise agreements. Other revenue Proprietary licensing revenue is generated from proprietary licensing services provided to customers. Revenue is recognized when the services are delivered to the customer at a point in time as outlined by the contract. The Company does not operate or manage these services separately from its primary retail sales or operations, and there are no significant costs of sale related to proprietary licensing revenue. Millwork revenue is defined as the proceeds and receivables related to the sale of millwork, which includes store fixtures. Millwork revenue is recognized at a point in time when a contractual exchange agreement has been entered into, and the performance obligation is considered to have been met when the millwork has been delivered to the franchise partner. Supply revenue represents revenues earned from the sales of custom Spiritleaf accessories to franchise locations. The Spiritleaf accessory revenue is earned when the goods are shipped. RESEARCH AND DEVELOPMENT Research costs are expensed in the period incurred. Development costs are expensed in the period incurred unless the Company believes a development project meets the generally accepted criteria for deferral and amortization per IAS 38. Research and development costs comprise consulting fees, costs to cultivate and test cultivar batches to the point of commercialization and licence acquisition fees. No development costs have been capitalized as at December 31, 2023, or December 31, 2022. SHARE-BASED COMPENSATION The Company’s share-based compensation plans include equity-settled awards and cash-settled awards. The fair value of share-based compensation expenses is estimated using the Black-Scholes pricing model and relies on a number of estimates, such as the expected life of the award, the volatility of the underlying share price, the risk-free rate of return and the estimated rate of forfeiture of awards granted. Equity-settled Simple and performance warrants, stock options and restricted share units (“RSUs”) are granted from time to time to employees, directors, and others at the discretion of the Board. The grant date fair value of simple warrants, performance warrants, stock options and RSUs is recognized as share-based compensation expense, with a corresponding increase in contributed surplus, over the vesting period of the awards. On exercise of simple warrants, performance warrants and stock options, the cash consideration received is credited to share capital and the associated amount in contributed surplus is reclassified to share capital. On exercise of RSUs, the associated amount in contributed surplus is reclassified to share capital. Cash-settled DSUs are granted to directors and represent a right for the holder to receive a cash payment equal to the fair value of the Company’s common shares calculated at the date of such payment. Nova DSUs are granted to Nova directors and represent a right for the holder to receive a cash payment equal to the fair value of Nova’s common shares calculated at the date of such payment, or Nova common shares, at the discretion of Nova. DSUs are accounted for as a liability instrument and measured at fair value based on the market value of the Company’s common shares at each period end. The fair value is recognized as share-based compensation over the vesting period. Fluctuations in the fair value are recognized within share-based compensation in the period in which they occur. INCOME TAXES Income taxes are recognized in profit and loss, except to the extent that they relate to items recognized directly in equity, in which case the tax is recognized in equity. Current taxes are generally the expected income tax payable on taxable income for the reporting period, calculated using rates enacted or substantively enacted at the consolidated |
Significant Accounting Estimate
Significant Accounting Estimates, Assumptions and Judgements | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of initial application of standards or interpretations [abstract] | |
Significant accounting estimates, assumptions and judgements | 4. Significant accounting estimates, assumptions and judgements The preparation of these consolidated financial statements in accordance with IFRS Accounting Standards requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Judgement is used mainly in determining whether a balance or transaction should be recognized in the consolidated financial statements. Estimates and assumptions are mostly used in determining the measurement of recognized transactions and balances. However, judgements and estimates are often interrelated. Judgements, estimates and assumptions are continually evaluated and are based on factors including expectations of future events that are believed to be reasonable under the circumstances. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in future periods affected. Judgements, assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment include the following: IMPAIRMENTS CGU’s are defined as the lowest grouping of integrated assets that generate identifiable cash inflows that are largely independent of the cash inflows of other assets or groups of assets. The classification of assets into CGU’s requires significant judgement and interpretations with respect to the integration between assets, the existence of active markets, external users, shared infrastructure and the way in which management monitors the Company’s operations. The recoverable amounts of CGU’s and individual assets have been determined as the higher of the CGU’s or the asset’s fair value less costs of disposal and its value in use. These calculations require the use of estimates and assumptions and are subject to changes as new information becomes available including information on the likelihood of obtaining future licences from Health Canada, total addressable market, market share escalation factor, gross profit escalation factor, terminal multiple and discount rates. Changes in assumptions used in determining the recoverable amount could affect the carrying value of the related assets and CGU’s. BIOLOGICAL ASSETS AND INVENTORY Biological assets, comprising cannabis plants and agricultural product consisting of cannabis, are measured at fair value less costs to produce and sell up to the point of harvest. Determination of the fair values of the biological assets and the agricultural product requires the Company to make assumptions about how market participants assign fair values to these assets. These assumptions primarily relate to the level of effort required to bring the cannabis up to the point of harvest, costs to convert the harvested cannabis to finished goods, sales price, risk of loss, expected future yields from the cannabis plants and estimating values during the growth cycle. The valuation of biological assets at the point of harvest is used as the measurement basis for all internally cultivated cannabis-based inventory and thus any critical estimates and judgements related to the valuation of biological assets are also applicable to inventory. The valuation of work-in-progress and finished goods also requires the estimate of conversion costs incurred, which become part of the carrying amount of the inventory. The Company must also determine if the carrying value of any inventory exceeds its net realizable value, such as cases where prices have decreased, or inventory has spoiled or has otherwise been damaged. Revenue Government customers typically have a right of product return, and in some cases, the right to pricing adjustments for products that are subsequently discounted or sold for a lower price in another jurisdiction. Licensed producers can, in some cases, have a right of product return or warranty period. The estimate of potential future returns includes the use of estimates and assumptions and are subject to change as new information becomes available. ACQUISITIONS The Company assesses whether an acquisition should be accounted for as an asset acquisition or a business combination under International Financial Reporting Standard 3 – Business Combinations (“IFRS 3”). This assessment requires management to make judgements on whether the assets acquired and liabilities assumed constitute a business as defined in IFRS 3 and if the integrated set of activities, including inputs and processes acquired, is capable of being conducted and managed as a business and the Company obtains control of the business inputs and processes. Investments The Company’s investments at FVTPL are financial assets measured at fair value each reporting period. The determination of the fair value of each investment requires judgement from management and the primary assumption is the discount rate. equity-accounted investees The Company’s interest in a joint venture is accounted for using the equity-method. The current investment portfolio of the joint venture is comprised of secured debt and hybrid instruments which include options and warrants. These investments are recorded at fair value each reporting period with any changes in fair value recorded through profit or loss. The determination of the fair value of the underlying investments is based on a discounted cash flow methodology and requires judgement from management. The discounted cash flows are based on various assumptions, including an estimation of market prices, volatility and discount rates. The Company has independent valuations done every quarter. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about business combination [abstract] | |
Business Acquisitions | 5. Business acquisitions A) Alcanna On October 7, 2021, the Company announced that it had entered into an arrangement agreement with Alcanna Inc. (“Alcanna”) pursuant to which the Company would acquire all of the issued and outstanding common shares of Alcanna by way of a statutory plan of arrangement (the “Alcanna Transaction”). The Company and Alcanna amended the arrangement agreement in respect of the Alcanna Transaction on January 6, 2022 , and the Alcanna Transaction closed on March 31, 2022 . Alcanna is a Canadian liquor retailer, operating predominantly in Alberta under its three retail brands, “Wine and Beyond”, “Liquor Depot” and “Ace Liquor”. Alcanna holds an approximate 63 % equity interest in Nova, a Canadian cannabis retailer operating stores across Alberta, Saskatchewan and Ontario, under its “Value Buds” and “Sweet Tree” retail brands. The Company is deemed to control Nova through its equity interest and Nova’s results are included in the consolidated financial statements of the Company with the minority interest shown as non-controlling interest through equity. Alcanna was acquired to diversify and stabilize cash flows and advance the Company’s vertical integration strategy. The Alcanna Transaction consideration was comprised of (i) an aggregate $ 54.3 million cash ($ 1.50 in cash for each Alcanna common share), and (ii) an aggregate 32.1 million SNDL common shares valued at $ 287.1 million based on the fair value of each common share of the Company on the closing date ( 0.885 of a SNDL common share for each Alcanna common share). The Company engaged independent valuation experts to assist in determining the fair value of certain assets acquired and liabilities assumed and related deferred income tax impacts, if any. The fair value of consideration paid was as follows: Provisional Adjustments Final Cash 54,339 — 54,339 Issuance of common shares 287,129 — 287,129 341,468 — 341,468 The fair value of the assets and liabilities acquired was as follows: Provisional Adjustments Final Cash 23,190 — 23,190 Accounts receivable 1,868 — 1,868 Prepaid expenses and deposits 10,986 — 10,986 Inventory 105,022 — 105,022 Right of use assets 171,866 ( 31,117 ) 140,749 Property, plant and equipment 86,059 24,632 110,691 Intangible assets — 45,100 45,100 Goodwill 280,243 ( 129,308 ) 150,935 Accounts payable and accrued liabilities ( 36,703 ) ( 44 ) ( 36,747 ) Long-term debt ( 10,000 ) — ( 10,000 ) Lease liabilities ( 232,755 ) 90,736 ( 142,019 ) Derivative warrants ( 58 ) ( 27 ) ( 85 ) Non-controlling interest ( 58,250 ) 28 ( 58,222 ) 341,468 — 341,468 Non-controlling interest has been measured as the fair value of the non-controlling interest in Nova, which at the time was 37 %, and was measured by applying a market approach with reference to Nova’s closing share price on the day of the Alcanna Transaction of $ 2.66 . On March 31, 2022, the Company repaid in full the acquired long-term debt balance of $ 10.0 million. These consolidated financial statements incorporate the operations of Alcanna commencing March 31, 2022. During the period March 31, 2022 to December 31, 2022, the Company recorded revenu es of $ 639.5 mi llion and net loss of $ 101.0 million from the Alcanna operations. Had the Alcanna Transaction closed on January 1, 2022, management estimates that for the period January 1, 2022, to March 30, 2022, revenue would have increased by $ 162.5 million and net loss would have increased by $ 25.5 million. In determining these amounts, management assumes the fair values on the date of acquisition would have been the same as if the acquisition had occurred on January 1, 2022. The Company incurred costs related to the Alcanna Transaction of $ 7.0 million which have been included in transaction costs for the year ended December 31, 2022. The Company recorded adjustments to the fair value in the fourth quarter of 2022 to reflect additional information and greater certainty with respect to management estimates pertaining to facts and circumstances that were either unknown or uncertain at the date of acquisition. These adjustments related to changes in preliminary valuation assumptions, including refinement of right of use assets, property, plant and equipment, intangible assets, accounts payable and accrued liabilities, lease liabilities, derivative warrants and non-controlling interest. All measurement period adjustments were offset to goodwill. B) Zenabis On November 1, 2022, the Company announced that, in the context of proceedings pursuant to the Zenabis Group’s (as defined below) filing under the Companies’ Creditors Arrangement Act (“CCAA”), it had successfully acquired all of the assets of the business of the Zenabis Group, subject to certain exclusions, (the “Zenabis Business”), pursuant to an approval order of the Québec Superior Court (the “Court”). The order of the Court approved the acquisition by a wholly owned subsidiary of SNDL of all issued and outstanding shares of Zenabis Ltd., a corporation resulting from the amalgamation of select Zenabis entities (collectively, the “Zenabis Group”), as part of the consideration for the senior secured debt of the Zenabis Group due to the SNDL subsidiary. Zenabis Ltd. owns all of the Zenabis Business, free and clear of any encumbrances except certain permitted encumbrances (namely the security of the wholly owned subsidiary of SNDL, which was preserved). The Zenabis acquisition consideration was comprised of (i) the extinguishment of the Company’s senior loan. The Company engaged independent valuation experts to assist in determining the fair value of certain assets acquired and liabilities assumed and related deferred income tax impacts, if any. The fair value of consideration paid was as follows: Final Extinguishment of senior loan 18,215 18,215 The fair value of the assets and liabilities acquired was as follows: Final Cash 2,509 Accounts receivable 888 Biological assets 909 Prepaid expenses and deposits 1,856 Inventory 4,512 Assets held for sale 6,375 Right of use assets 32 Property, plant and equipment 4,658 Accounts payable and accrued liabilities ( 3,437 ) Lease liabilities ( 87 ) 18,215 Assets held for sale are comprised of a processing facility in Stellarton, Nova Scotia, whose primary purpose was the packaging and processing of value added and derivative products for the adult-use cannabis market. These consolidated financial statements incorporate the operations of Zenabis commencing November 1, 2022. During the period November 1, 2022 to December 31, 2022, the Company recorded revenu es of $ 0.4 mi llion and net loss of $ 1.8 million from the Zenabis operations. Had the acquisition closed on January 1, 2022, management estimates that for the period January 1, 2022, to October 31, 2022, revenue would have increased by $ 2.0 million and net loss would have increased by $ 9.0 million. In determining these amounts, management assumes the fair values on the date of acquisition would have been the same as if the acquisition had occurred on January 1, 2022. The Company incurred costs related to the Zenabis acquisition of $ 0.8 million which have been included in transaction costs for the year ended December 31, 2022. C) Valens On January 17, 2023, the Company acquired all of the issued and outstanding common shares of The Valens Company Inc. (“Valens”), other than those owned by SNDL and its subsidiaries, by way of a statutory plan of arrangement (the “Valens Transaction”). The Valens Transaction consideration was comprised of (i) the assumption of Valens’ $ 60 million non-revolving term loan facility from its then existing lender, (ii) an aggregate 27.6 million SNDL common shares valued at $ 84.0 million based on the fair value of each common share of the Company on the closing date ( 0.3334 of a SNDL common share for each Valens common share), and (iii) contingent consideration valued at $ 0.6 million representing the fair value of Valens stock options. Valens is a manufacturer of cannabis products providing proprietary cannabis processing services, in addition to product development, manufacturing, and commercialization of cannabis consumer packaged goods. Valens products are formulated for the medical, health and wellness, and recreational consumer segments. The Company engaged independent valuation experts to assist in determining the fair value of certain assets acquired and liabilities assumed and related deferred income tax impacts, if any. The fair value of consideration paid was as follows: Provisional Adjustments Final Valens loan facility 61,512 — 61,512 Issuance of common shares 83,953 — 83,953 Contingent consideration — 602 602 145,465 602 146,067 Th e fair value of the assets and liabilities acquired was as follows: Provisional Adjustments Final Cash 3,615 — 3,615 Accounts receivable 21,361 — 21,361 Marketable securities 876 — 876 Prepaid expenses and deposits 4,980 — 4,980 Inventory 14,140 — 14,140 Assets held for sale 6,330 — 6,330 Right of use assets 2,882 — 2,882 Property, plant and equipment 63,030 ( 10,938 ) 52,092 Intangible assets 2,285 ( 785 ) 1,500 Goodwill 68,697 12,325 81,022 Accounts payable and accrued liabilities ( 34,185 ) — ( 34,185 ) Contractual obligation ( 5,339 ) — ( 5,339 ) Lease liabilities ( 3,207 ) — ( 3,207 ) 145,465 602 146,067 Valens subsidiary Green Roads, Inc. (“Green Roads”) was sold and has been classified as held for sale and discontinued operations (note 6). Valens facility located in Mission, British Columbia was also classified as held for sale and was disposed of during the current year (note 13). The financial statements incorporate the operations of Valens commencing January 18, 2023. During the period January 18, 2023 to December 31, 2023 the Company recorded gross revenues of $ 99.1 million and net loss of $ 85.8 million fro m the Valens operations. Had the Valens Transaction closed on January 1, 2023, management estimates that for the period January 1, 2023, to January 17, 2023, revenue would have increased by $ 4.2 million and net loss would have increased by $ 2.1 million. In determining these amounts, management assumes the fair values on the date of acquisition would have been the same as if the acquisi tion had occurred on January 1, 2023. The Company incurred costs related to the Valens Transaction of $ 2.8 million w hich have been included in transaction costs for the year ended December 31, 2023. D) Superette On February 7, 2023, the Company acquired the right, title and interest in (i) five Superette retail locations within Toronto and Ottawa; (ii) the intellectual property rights related to the Superette brand; and (iii) the shares of Superette Ontario (collectively, the “Superette Transaction”). The Superette acquisition consideration was comprised of the extinguishment of the Company’s promissory note. The fair value of consideration paid was as follows: Extinguishment of promissory note 2,625 2,625 The fair value of the assets and liabilities acquired was as follows: Cash 80 Accounts receivable 30 Prepaid expenses and deposits 141 Inventory 371 Right of use assets 1,129 Property, plant and equipment 2,077 Accounts payable and accrued liabilities ( 74 ) Lease liabilities ( 1,129 ) 2,625 The financial statements incorporate the operations of Superette commencing February 8, 2023. During the period February 8, 2023 to December 31, 2023 the Company recorded gross revenues o f $ 3.8 million and net loss of $ 2.0 million from the Superette operations. Had the Superette Transaction closed o n January 1, 2023, management estimates that for the period January 1, 2023, to February 7, 2023, revenue would have increased by $ 0.5 million and net loss would have increased by $ 0.1 million. In determining these amounts, management assumes the fair values on the date of acquisition would have been the same as if the acquisition had occurr ed on January 1, 2023. The Company incurred costs related to the Superette Transaction of $ 0.7 million which have been included in transaction costs for the year ended December 31, 2023. E) Inner spirit On May 5, 2021, the Company and Inner Spirit Holdings Ltd. (“Inner Spirit”) announced that they had entered into an arrangement agreement pursuant to which the Company acquired all of the issued and outstanding common shares of Inner Spirit (the “Inner Spirit Transaction”). The Inner Spirit Transaction closed on July 20, 2021 . The Inner Spirit Transaction consideration was comprised of (i) an aggregate $ 92.6 million cash ($ 0.30 in cash for each Inner Spirit common share), (ii) an aggregate 2.4 million SNDL common shares valued at $ 26.2 million based on the fair value of each common share of the Company on the closing date ( 0.00835 of a SNDL common share for each Inner Spirit common share) and (iii) contingent consideration valued at $ 1.2 million representing the fair value of Inner Spirit warrants. The Company engaged independent valuation experts to assist in determining the fair value of certain assets acquired and liabilities assumed and related deferred income tax impacts. The fair value of consideration paid was as follows: Provisional Adjustments Final Cash 92,583 — 92,583 Issuance of common shares 26,216 — 26,216 Contingent consideration 1,150 — 1,150 119,949 — 119,949 The fair value of the assets and liabilities acquired was as follows: Provisional Adjustments Final Cash 9,808 — 9,808 Accounts receivable 750 ( 327 ) 423 Prepaid expenses and deposits 853 — 853 Inventory 2,733 2,011 4,744 Right of use assets — 5,730 5,730 Property, plant and equipment 12,108 ( 5,730 ) 6,378 Intangible assets — 46,000 46,000 Net investment in subleases 23,751 50 23,801 Goodwill 114,537 ( 42,041 ) 72,496 Accounts payable and accrued liabilities ( 2,678 ) — ( 2,678 ) Convertible debentures ( 12,025 ) — ( 12,025 ) Lease liabilities ( 29,481 ) ( 50 ) ( 29,531 ) Financial guarantee liability ( 407 ) — ( 407 ) Deferred tax liability — ( 5,643 ) ( 5,643 ) 119,949 — 119,949 The Company recorded adjustments to the fair value in the third quarter of 2022 to reflect additional information and greater certainty with respect to management estimates pertaining to facts and circumstances that were either unknown or uncertain at the date of acquisition. These adjustments related to changes in preliminary valuation assumptions, including refinement of accounts receivable, inventory, net investment in subleases, lease liabilities and amounts allocated to intangible assets and deferred tax liability. All measurement period adjustments were offset to goodwill. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of analysis of single amount of discontinued operations [abstract] | |
Discontinued Operations | 6. Discontinued operations The Green Roads operations acquired as part of the Valens acquisition were classified as held for sale and discontinued operations as the carrying amount of the disposal group was expected to be recovered through a sale transaction rather than through continued use. Green Roads filed for bankruptcy on March 6, 2023. A successful bid of US$ 3.1 million was accepted and the sale was approved at a court hearing on May 10, 2023. The disposition of Green Roads closed on May 31, 2023 and a loss on disposition of $ 2.3 million was recorded. The consolidated statement of loss and comprehensive loss and consolidated statement of cash flows have been presented to show the discontinued operations separately from continuing operations. Results of discontinued operations Year ended 2023 2022 Net revenue 7,510 — Cost of sales 3,841 — Gross profit 3,669 — General and administrative 3,639 — Sales and marketing 1,817 — Depreciation and amortization 450 — Operating loss ( 2,237 ) — Finance costs ( 16 ) — Loss on disposition ( 2,282 ) — Net loss ( 4,535 ) — |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of operating segments [abstract] | |
Segment Information | 7. Segment information The Company’s re portable segments are organized by business line and are comprised of four repo rtable segments: liquor retail, cannabis retail, cannabis operations, and investments. Liquor retail includes the sale of wines, beers and spirits through owned liquor stores. Cannabis retail includes the private sale of adult-use cannabis through owned and franchise retail cannabis stores. Cannabis operations include the cultivation, distribution and sale of cannabis for the adult-use and medical markets domestically and for export, and providing proprietary cannabis processing services, in addition to product development, manufacturing, and commercialization of cannabis consumer packaged goods. Investments include the deployment of capital to investment opportunities. Certain overhead expenses not directly attributable to any operating segment are reported as “Corporate”. Liquor Cannabis (1) Cannabis (2) Investments (3) Corporate Total As at December 31, 2023 Total assets 320,239 206,988 208,295 717,751 19,891 1,473,164 Year ended December 31, 2023 Net revenue (4) 578,895 289,980 87,071 — ( 46,940 ) 909,006 Gross profit 137,286 73,690 ( 20,561 ) — — 190,415 Operating income (loss) 24,630 4,919 ( 112,445 ) 11,746 ( 91,668 ) ( 162,818 ) Earnings (loss) before income tax 19,190 1,310 ( 112,159 ) 8,429 ( 88,786 ) ( 172,016 ) (1) Cannabis retail includes the operations of Superette for the period February 8, 2023 to December 31, 2023 (note 5(d) ). (2) Cannabis operations includes the operations of Valens for the period January 18, 2023 to December 31, 2023 (note 5(c) ). (3) Total assets include cash and cash equivalents. (4) The Company has eliminated $ 46.9 million of cannabis operations revenue and equal cost of sales associated with sales to provincial boards that are expected to be subsequently repurchased by the Company’s licensed retailer subsidiaries for resale, at which point the full retail sales revenue will be recognized. The elimination was recorded in the Corporate segment. Liquor (1) Cannabis (1) Cannabis (2) Investments (3) Corporate Total As at December 31, 2022 Total assets 351,338 200,393 163,130 825,151 19,338 1,559,350 Year ended December 31, 2022 Net revenue 462,180 205,610 44,407 — — 712,197 Gross profit 106,307 47,334 ( 13,266 ) — — 140,375 Operating income (loss) 20,619 ( 180,956 ) ( 29,372 ) ( 91,275 ) ( 66,790 ) ( 347,774 ) Earnings (loss) before income tax 17,726 ( 183,055 ) ( 29,618 ) ( 127,362 ) ( 57,461 ) ( 379,770 ) (1) Liquor retail includes operations of Alcanna retail stores for the period March 31, 2022 to December 31, 2022, and cannabis retail includes operations of Nova retail stores for the period March 31, 2022 to December 31, 2022 (note 5(a) ). (2) Cannabis operations includes the operations of Zenabis for the period November 1, 2022 to December 31, 2022 (note 5(b) ). (3) Total assets include cash and cash equivalents. Geographical disclosure As at December 31, 2023, the Company had non-current assets related to investment credit operations in the United States of $ 538.3 million (December 31, 2022 — $ 519.3 million ). For the year ended December 31, 2023, share of profit of equity-accounted investees related to investment credit operations in the United States was a gain of $ 6.8 million (year ended December 31, 2022 — loss of $ 43.0 million ). All other non-current assets relate to operations in Canada and revenues from external customers relate to operations in Canada. |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2023 | |
Restricted Cash [Abstract] | |
Restricted Cash | 8. Restricted cash As at December 31, 2023 December 31, 2022 Captive insurance 19,616 19,044 Other 275 294 19,891 19,338 The Company has secured insurance coverage for its directors and officers through two separate captive insurance structures (note 3). |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2023 | |
Marketable Securities Disclosure [Abstract] | |
Marketable Securities | 9. Marketable securities As at December 31, 2023 December 31, 2022 Balance, beginning of year 21,926 83,724 Acquisition (note 5(c)) 876 — Additions — 3,755 Dispositions ( 13,319 ) — Change in fair value recognized in profit or loss ( 9,258 ) ( 65,553 ) Balance, end of period 225 21,926 During the year ended December 31, 2023, proceeds o f $ 6.7 million ( year ended December 31, 2022 — nil ) were received for dispositions of marketable securities and a loss on disposition of $ 8.6 million ( year ended December 31, 2022 — nil ) was recognized. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Accounts Receivable | 10. Accounts receivable As at December 31, 2023 December 31, 2022 Trade receivables 23,422 17,558 Other receivables 3,637 5,078 27,059 22,636 The Company has calculated ECLs based on lifetime expected credit losses, taking into consideration historical credit loss experience and financial factors specific to the debtors and general economic conditions. Refer to note 34 for credit risk disclosures. |
Biological Assets
Biological Assets | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of reconciliation of changes in biological assets [abstract] | |
Biological Assets | 11. Biological assets The Company’s biological assets consist of cannabis plants in various stages of vegetation, including plants which have not been harvested. The change in carrying value of biological assets is as follows: As at December 31, 2023 December 31, 2022 Balance, beginning of year 3,477 4,410 Increase in biological assets due to capitalized costs 21,501 27,749 Acquisition — 909 Net change in fair value of biological assets ( 7,936 ) ( 1,309 ) Transferred to inventory upon harvest ( 16,613 ) ( 28,282 ) Balance, end of year 429 3,477 Biological assets are valued in accordance with IAS 41 and are presented at their fair value less costs to sell up to the point of harvest. This is determined using a model which estimates the expected harvest yield in grams for plants currently being cultivated, and then adjusts that amount for the expected selling price less costs to produce and sell per gram. The fair value measurements for biological assets have been categorized as Level 3 fair values based on the inputs to the valuation technique used. The Company’s method of accounting for biological assets attributes value accretion on a straight-line basis throughout the life of the biological asset from initial cloning to the point of harvest. The Company estimates the harvest yields for cannabis at various stages of growth. As at December 31, 2023, it is estimated that the Company’s biological assets will yield approximately 2,230 kilograms (December 31, 2022 — 3,904 kilograms) of dry cannabis when harvested. During the year ended December 31, 2023, the Company harvested 15,064 kilograms of dry cannabis (year ended December 31, 2022 — 19,854 kilograms). |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2023 | |
Classes of current inventories [abstract] | |
Inventory | 12. Inventory As at December 31, 2023 December 31, 2022 Retail liquor 83,923 82,589 Retail cannabis 19,516 13,373 Millwork — 276 Harvested cannabis Raw materials, packaging and components 7,781 4,577 Extracted cannabis & hemp oils 11,989 — Work-in-progress 995 19,927 Finished goods 4,856 7,040 129,060 127,782 During the year ended December 31, 2023, inventories of $ 689.3 million were recognized in cost of sales as an expense (year ended December 31, 2022 — $ 558.1 million ). During the year ended December 31, 2023, the Company recognized inventory write downs of $ 30.8 million (year ended December 31, 2022 — $ 8.9 million ), of which $ 30.6 million (year ended December 31, 2022 — $ 7.0 million ) was recognized as a provision for impaired and obsolete inventory, and $ 0.2 million (year ended December 31, 2022 — $ 1.9 million ) was included in the change in fair value realized through inventory as the fair value component of the provision for impaired and obsolete inventory. |
Assets Held for Sale
Assets Held for Sale | 12 Months Ended |
Dec. 31, 2023 | |
Assets Held For Sale [Abstract] | |
Assets Held for Sale | 13. Assets held for sale At December 31, 2023, and December 31, 2022, assets held for sale were measured at their fair value less costs to sell and comprised of the following: Stellarton facility 6,375 6,375 The Stellarton facility is located in Stellarton, Nova Scotia, and its primary purpose was the packaging and processing of value added and derivative products for the adult-use cannabis market. The Stellarton facility was acquired in the Zenabis acquisition (note 5(b)). During the year ended December 31, 2023 , the Company sold the Mission facility and recorded a gain on disposal of $ 0.1 million. The Mission facility was located in Mission, British Columbia, and its primary purpose was the cultivation of cannabis and the packaging of dried cannabis flower in consumer packaging. The Mission facility was acquired in the Valens Transaction (note 5(c) ). |
Right Of Use Assets
Right Of Use Assets | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of quantitative information about right-of-use assets [abstract] | |
Right Of Use Assets | 14. right of use assets Cost Balance at December 31, 2021 8,038 Acquisitions (note 5(a), note 5(b)) 140,781 Additions 6,103 Tenant inducement allowances ( 46 ) Dispositions and remeasurements 12,191 Balance at December 31, 2022 167,067 Acquisition (note 5(c), note 5(d)) 4,011 Additions 3,530 Renewals, remeasurements and dispositions 24,424 Balance at December 31, 2023 199,032 Accumulated depreciation and impairment Balance at December 31, 2021 1,321 Depreciation 25,227 Impairment 6,365 Balance at December 31, 2022 32,913 Depreciation 32,640 Impairment 3,852 Dispositions ( 52 ) Balance at December 31, 2023 69,353 Net book value Balance at December 31, 2022 134,154 Balance at December 31, 2023 129,679 During the year ended December 31, 2023, renewals, remeasurements and dispositions of $ 24.4 million mainly related to lease renewals. As at December 31, 2023 , the Company recorded impairment losses of right of use assets of $ 3.9 million (December 31, 2022 — $ 6.4 million) with $ 2.7 million (December 31, 2022 — $ 3.9 million) in the cannabis retail reporting segment and $ 1.2 million ( December 31, 2022 — $ 2.5 million) in the liquor retail reporting segment. Refer to note 15 for the significant assumptions applied in the impairment test. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, plant and equipment [abstract] | |
Property, Plant and Equipment | 15. Property, plant and equipment Land Production facilities Leasehold improvements Equipment Construction Total Cost Balance at December 31, 2021 12,388 153,332 3,899 32,777 6,103 208,499 Acquisitions (note 5(a), note 5(b)) 130 4,528 64,059 44,263 2,369 115,349 Additions 57 256 3,465 5,907 982 10,667 Dispositions ( 611 ) ( 3,882 ) ( 609 ) ( 4,025 ) — ( 9,127 ) Balance at December 31, 2022 11,964 154,234 70,814 78,922 9,454 325,388 Acquisitions (note 5(c), note 5(d)) 8,661 24,330 3,660 17,518 — 54,169 Additions — — 2,739 5,609 102 8,450 Transfers from CIP — 882 — — ( 882 ) — Dispositions — 38 ( 314 ) ( 2,885 ) — ( 3,161 ) Balance at December 31, 2023 20,625 179,484 76,899 99,164 8,674 384,846 Accumulated depreciation and impairment Balance at December 31, 2021 — 131,867 411 13,928 5,821 152,027 Depreciation — 1,464 7,131 11,278 — 19,873 Impairment — — 7,794 7,415 — 15,209 Dispositions — ( 1,324 ) ( 610 ) ( 3,196 ) — ( 5,130 ) Balance at December 31, 2022 — 132,007 15,369 28,782 5,821 181,979 Depreciation — 2,526 11,675 15,796 — 29,997 Impairment — 10,825 1,697 8,924 — 21,446 Dispositions — 62 ( 293 ) ( 1,261 ) — ( 1,492 ) Balance at December 31, 2023 — 145,420 28,448 52,241 5,821 231,930 Net book value Balance at December 31, 2022 11,964 22,227 55,445 50,140 3,633 143,409 Balance at December 31, 2023 20,625 34,064 48,451 46,923 2,853 152,916 During the year ended December 31, 2023, depreciation expense of $ 4.7 million was capitalized to biological assets and inventory (year ended December 31, 2022 – $ 6.4 million ). During the year ended December 31, 2023, the Company determined that indicators of impairment existed relating to certain idle machinery and equipment. The estimated recoverable amount of the assets was determined to be nil and an impairment o f $ 3.0 million was recorded. The impairment was recognized in the Company’s cannabis operations reporting segment. In October 2023, management decided to close the Olds facility and consolidate all cultivation activities at its Atholville facility. This resulted in an indicator of impairment and a test for impairment was performed by comparing the estimated recoverable amount to the carrying value of the assets, using its fair value less costs of disposal. Based on the analysis, the Company recognized an impairment loss of $ 15.6 million, as the estimated recoverable amount of $ 18.7 million was lower than the respective carrying amount. The impairment was recognized in the cannabis operations reporting segment. The fair value measurement is categorized within Level 2 of the fair value hierarchy and the valuation technique was based on a market comparison for comparable assets. Subsequent to December 31, 2023, the Olds facility was classified as held for sale. During the year ended December 31, 2023, the Company determined that indicators of impairment existed relating to certain retail stores due to underperforming store level operating results. For impairment testing of retail property, plant and equipment and right of use assets, the Company determined that a CGU was defined as each individual retail store. The Company completed impairment tests for each CGU determined to have an indicator of potential impairment using a discounted cash flow model. The recoverable amounts for each CGU were based on the higher of its estimated value in use and fair value less costs of disposal using Level 3 inputs. The significant assumptions applied in the impairment test are described below: • Cash flows: Projected future sales and earnings for cash flows are based on actual operating results and operating budgets. Management determined forecasted growth rates of sales based on past performance, expectations of future performance for each location and industry averages. Expenditures were based upon a combination of historical percentages of revenue, sales growth rates, forecasted inflation rates and contractual lease payments. The duration of the cash flow projections for individual CGUs varies based on the remaining lease term of the CGU. • Discount rate: A pre-tax discount rate of 12.0 % was estimated and is based on market assessments of the time value of money and CGU specific risks. To determine a pre-tax discount rate, a weighted average cost of capital was used as a reference point which is based on market capital structure of debt, risk-free rate, equity risk premium, beta adjustment to the equity risk premium based on a review of betas of comparable publicly traded companies, the Company’s historical data, an unsystematic risk premium and after-tax cost of debt based on corporate bond yields. As at December 31, 2023, the Company recorded impairment losses of property, plant and equipment of $ 2.8 million (2022 – $ 12.8 million) ($ 1.7 million in leasehold improvements and $ 1.1 million in equipment) with $ 2.4 million (2022 – $ 5.3 million) in the cannabis retail reporting segment and $ 0.4 million (2022 – $ 7.5 million) in the liquor retail reporting segment. The Company also recorded impairment losses of right of use assets (note 14). During the year ended December 31, 2022, proceeds of $ 3.5 million were received for the disposition of the Company’s Merritt facility and a gain on disposal of $ 0.5 million was recognized. At December 31, 2021, the Merritt facility was classified as assets held for sale. During the year ended December 31, 2022, proceeds of $ 3.9 million were received for the disposition of the Company’s Rocky View facility and no gain on disposal was recognized. During the year ended December 31, 2022, the Company determined that indicators of impairment existed relating to idle machinery and equipment. The estimated recoverable amount of the assets was determined to be nil and an impairment of $ 2.4 million was recorded. The impairment was recognized in the Company’s cannabis operations reporting segment. |
Net Investment In Subleases
Net Investment In Subleases | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Net Investment In Subleases [Abstract] | |
Disclosure of Net Investment in Subleases Explanatory | 16. Net investment in subleases December 31, 2023 December 31, 2022 Balance, beginning of year 23,319 26,562 Additions 832 1,408 Finance income 857 833 Rents recovered (payments made directly to landlords) ( 4,004 ) ( 4,141 ) Dispositions and remeasurements 362 ( 1,343 ) Balance, end of year 21,366 23,319 Current portion 2,970 3,701 Long-term 18,396 19,618 Net investment in subleases represent leased retail stores that have been subleased to certain franchise partners. These subleases are classified as a finance lease as the sublease terms are for the remaining term of the head lease. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about intangible assets [abstract] | |
Intangible Assets | 17. Intangible assets Brands and trademarks Franchise agreements Software Retail Total Cost Balance at December 31, 2021 41,445 10,000 — — 51,445 Acquisition (note 5(a)) 38,950 — 5,400 750 45,100 Additions 55 — 142 — 197 Dispositions ( 50 ) — — — ( 50 ) Balance at December 31, 2022 80,400 10,000 5,542 750 96,692 Acquisition (note 5(c)) 1,500 — — — 1,500 Additions — — 87 — 87 Dispositions — — ( 73 ) — ( 73 ) Balance at December 31, 2023 81,900 10,000 5,556 750 98,206 Accumulated amortization and impairment Balance at December 31, 2021 736 561 — — 1,297 Amortization 293 1,250 679 — 2,222 Impairment 18,288 — — — 18,288 Balance at December 31, 2022 19,317 1,811 679 — 21,807 Amortization 195 1,250 888 — 2,333 Impairment 935 — — — 935 Dispositions — — ( 18 ) — ( 18 ) Balance at December 31, 2023 20,447 3,061 1,549 — 25,057 Net book value Balance at December 31, 2022 61,083 8,189 4,863 750 74,885 Balance at December 31, 2023 61,453 6,939 4,007 750 73,149 Brands and trademarks are related to intellectual property purchased from Sun 8 Holdings Inc. (“Sun 8”) with a useful life of 15 years, intellectual property acquired through the acquisition of Inner Spirit consisting of proprietary rights to brands and trademarks with an indefinite useful life, and intellectual property acquired through the acquisition of Alcanna and Valens with indefinite useful lives. The brands and trademarks acquired from Inner Spirit, Alcanna and Valens were determined to have an indefinite useful life due to the fact that there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows. Franchise agreements consist of intellectual property acquired through the acquisition of Inner Spirit consisting of franchise relationships with a useful life of 8 years. Software is comprised of licenses acquired through the acquisition of Alcanna and are amortized using the straight-line method over the life of the licence. Retail licenses acquired through the acquisition of Alcanna have an indefinite life and are therefore not amortized. The retail licenses do not expire, but rather are subject to an administrative extension process each year indefinitely. During the year ended December 31, 2023 , the Company determined that indicators of impairment existed regarding the Sun 8 intellectual property and the intellectual property and rights pertaining to certain other cannabis strains due to decreasing market demand. The estimated recoverable amount of the intangible assets was determined to be $ 1.5 million (2022 – $ 2.5 million) and nil , respectively, and an impairment of $ 0.8 million (2022 – $ 1.9 million) and $ 0.1 million was recorded in the cannabis operations reporting segment. At September 30, 2022, the Company recorded impairments to intangible assets with indefinite useful lives of $ 16.4 million due to changes in circumstances since the date of the Inner Spirit acquisition, mainly caused by the continued oversaturation of the cannabis retail market. At December 31, 2022, the Company tested intangible assets with indefinite useful lives and goodwill for impairment based on changes in circumstances since the date of the Alcanna and Nova acquisition, mainly caused by the continued oversaturation of the cannabis retail market. The Company concluded that there was no further impairments to intangible assets with indefinite useful lives. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Investments [Abstract] | |
Investments | 18. Investments As at December 31, 2023 December 31, 2022 Investments at amortized cost 24,405 24,493 Investments at FVTPL 8,655 72,761 33,060 97,254 Current portion 3,400 6,552 Long-term 29,660 90,702 Investments at amortized cost The Company has a loan outstanding to Indiva Limited (“Indiva”) with a principal balance of $ 19.8 million that had a maturity date of February 23, 2024 . On August 28, 2023, the Company amended the maturity date to February 24, 2026 . Investments at fvtpl Valens On August 22, 2022, in connection with the proposed Valens Transaction, the Company assumed Valens’ non-revolving term loan facility from its then-existing lender, and amended and restated the related credit agreement to provide for a $ 60.0 million non-revolving term loan facility with a maturity date of December 15, 2023 and an interest rate of 10 % per annum. On January 17, 2023, the Company announced that it had successfully closed the Valens Transaction. The $ 60.0 million non-revolving term loan formed part of the consideration (note 5(c)). As Valens is now a wholly-owned subsidiary of the Company, the non-revolving term loan became inter-company debt and was removed from investments at FVTPL. Superette On February 9, 2022, the Company closed an investment in a $ 5.0 million promissory note with a maturity date of February 9, 2025 , and an interest rate of 15 % per annum. On August 26, 2022, November 22, 2022 and December 31, 2022, the Company entered into an amended and restated promissory note whereby the Company would advance additional funds up to $ 8.1 million as part of pre-CCAA advances and debtor-in-possession advances and the maturity date was amended such that the full balance of the promissory note plus accrued interest and advances became due August 30, 2022. On August 31, 2022, the Company announced that, in the context of the initial order obtained by Superette Inc., Superette Ontario Inc. and certain of its subsidiaries (collectively, “Superette”) from the Ontario Superior Court of Justice on August 30, 2022 pursuant to the CCAA proceedings, it had entered into an agreement of purchase and sale with Superette, pursuant to which it proposed to acquire substantially all of the business and assets of Superette. As at December 31, 2022, the Company had advanced an additional $ 1.8 million under the amended and restated promissory note. The Company adjusted the fair value of the promissory note downward by $ 3.7 million during the year ended December 31, 2022 to management’s best estimate of the recoverable value of the collateral underlying the security of the promissory note. During January and February 2023 the Company advanced an additional $ 0.9 million under the amended and restated promissory note. On February 7, 2023, the Company announced that it had successfully closed the Superette Transaction (note 5(d) ). The Company adjusted the fair value of the Superette promissory note downward by an additional $ 1.7 million (note 31 ) to management’s best estimate of the fair value of the Superette promissory note at February 7, 2023. The Superette promissory note was extinguished immediately preceding the business combination and forms the consideration transferred. |
Equity-Accounted Investees
Equity-Accounted Investees | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Interests In Other Entities [Abstract] | |
Equity-Accounted Investees | 19. Equity-accounted investees As at December 31, 2023 December 31, 2022 Interest in joint venture 538,331 519,255 A) Interest in joint venture SunStream is a joint venture in which the Company has a 50 % ownership interest. SunStream is a private company, incorporated under the Business Corporations Act (Alberta), which provides growth capital that pursues indirect investment and financial services opportunities in the cannabis sector, as well as other investment opportunities. SunStream is structured as a separate vehicle and the Company has a residual interest in the net assets of SunStream. Accordingly, the Company has classified its interest in SunStream as a joint venture, which is accounted for using the equity-method. The current investment portfolio of SunStream is comprised of secured debt, hybrid debt and derivative instruments with United States based cannabis businesses. These investments are recorded at fair value each reporting period with any changes in fair value recorded through profit or loss. SunStream actively monitors these investments for changes in credit risk, market risk and other risks specific to each investment. As at December 31, 2023 , the Company had fully funded the $ 538.0 million it had originally committed to SunStream . The following table summarizes the carrying amount of the Company’s interest in the joint venture: Carrying amount Balance at December 31, 2021 412,858 Capital contributions 119,137 Share of net loss ( 43,002 ) Share of other comprehensive income 31,923 Distributions ( 1,661 ) Balance at December 31, 2022 519,255 Capital contributions 25,089 Share of net earnings 6,758 Share of other comprehensive income (loss) ( 12,771 ) Balance at December 31, 2023 538,331 SunStream is a related party due to it being classified as a joint venture of the Company. Capital contributions to the joint venture and distributions received from the joint venture are classified as related party transactions. The following table summarizes the financial information of SunStream: As at December 31, 2023 December 31, 2022 Current assets (including cash and cash equivalents - 2023: $ 0.3 million, 2022: $ 1.5 million) 2,675 5,437 Non-current assets 532,740 509,418 Current liabilities ( 1,096 ) ( 1,146 ) Net assets (liabilities) ( 100 %) 534,319 513,709 Year ended December 31 2023 2022 Revenue (loss) 14,098 ( 35,046 ) Profit (loss) from operations 7,348 ( 42,627 ) Other comprehensive income (loss) ( 12,771 ) 31,923 Total comprehensive income (loss) ( 5,177 ) ( 10,619 ) B) Interest in associate The Company holds a 25 % equity interest in its associate Pathway RX Inc. (“Pathway”). Pathway is a private company focused on developing cannabis-based pharmaceutical drugs to treat symptoms associated with a range of medical cannabis. The carrying amount of the Company’s interest in Pathway is nil. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill [Abstact] | |
Goodwill | 20. Goodwill Net book value Balance at December 31, 2021 72,496 Acquisitions through business combinations (note 5(a)) 150,935 Impairment ( 156,171 ) Balance at December 31, 2022 67,260 Acquisitions through business combinations (note 5(c)) 81,022 Impairment ( 29,000 ) Balance at December 31, 2023 119,282 impairment test The Company considers its CGUs based on the interdependence of cash flows between different segments of the business, lowest level of cash flows within each segment and how management monitors operations. As such, the CGUs are defined as Liquor retail, Cannabis retail, Cannabis retail franchise group, Cannabis operations – Valens and Cannabis operations - Atholville. For the purpose of impairment testing, goodwill has been allocated as follows: December 31, 2023 December 31, 2022 Liquor retail 24,338 24,338 Cannabis retail 38,624 38,624 Cannabis retail franchise group 4,298 4,298 Cannabis operations - Valens 52,022 — 119,282 67,260 For the purpose of impairment testing at December 31, 2023, intangible assets with indefinite lives were allocated to the Company’s CGUs as follows: (i) $ 2.7 million to the cannabis retail CGU, (ii) $ 18.3 million to the cannabis retail franchise group CGU, (iii) $ 38.3 million to the liquor retail CGU and (iv) $ 1.5 million to the cannabis operations – Valens CGU. On December 31, 2023 and December 31, 2022, the Company performed its annual goodwill impairment test in accordance with its policy described in note 3. The impairment test for the Company’s cannabis retail, cannabis retail franchise group and cannabis operations – Valens CGUs used a fair value less costs of disposal model. The key assumptions used to calculate the fair value less costs of disposal are market revenue and EBITDA multiples (where applicable) which are considered Level 2 fair value assumptions as well as revenue and EBITDA one year forecasts which are considered to be Level 3 fair value assumptions. The impairment test for the Company’s liquor retail CGU used a value in use approach based on internal cash flow estimates at December 31, 2023, and a discount rate of 12.5 %. The discount rate was estimated based on the Company’s weighted average cost of capital, adjusted for risks specific to the CGU. The estimated cash flows were based on a 5-year model taking into account the overall forecasted Canadian liquor and spirits industry market growth projections. A terminal value thereafter was applied. Based on the analysis, there was an impairment of the Company’s cannabis operations – Valens CGU of $ 29.0 million as at December 31, 2023 as the estimated recoverable amount for this CGU of $ 124.1 million was lower than the respective carrying amount. The impairment loss was fully allocated to goodwill and included in asset impairment. The impairment was recognized in the Company’s cannabis operations reportable segment. The Company concluded that the recoverable amount of the remaining CGUs exceeded their carrying amounts and, therefore, goodwill was not impaired. For the purpose of impairment testing at December 31, 2022, intangible assets with indefinite lives were allocated to the Company’s CGUs as follows: (i) $ 2.7 million to the cannabis retail CGU, (ii) $ 18.3 million to the cannabis retail franchise group CGU and (iii) $ 43.1 million to the liquor retail CGU. The impairment test for the Company’s cannabis retail CGU used its fair value less costs of disposal and the fair value measurement was categorized as a Level 1 fair value based on the inputs in the valuation technique used. The impairment test for the Company’s cannabis franchise and liquor retail CGUs used a value in use approach based on internal cash flow estimates at December 31, 2022, and a discount rate of 12.0 %. The discount rate was estimated based on the Company’s weighted average cost of capital, adjusted for risks specific to the CGUs. The estimated cash flows were based on a 5-year model taking into account the overall forecasted Canadian cannabis and liquor industry market sizes and the Company’s forecasted market share. A terminal value thereafter was applied. Based on the analysis, there was an impairment of the Company’s retail cannabis CGU of $ 88.0 million as at December 31, 2022 as the estimated recoverable amount for this CGU of $ 84.8 million was lower than the respective carrying amount. The impairment loss was fully allocated to goodwill and included in asset impairment. The impairment was recognized in the Company’s cannabis retail reportable segment. The Company concluded that the recoverable amount of the remaining CGUs exceeded their carrying amounts and, therefore, goodwill was not impaired. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Accounts Payable and Accrued Liabilities | 21. Accounts payable and accrued liabilities December 31, 2023 December 31, 2022 Trade payables 22,035 9,774 Accrued and other liabilities 46,175 38,379 68,210 48,153 |
Derivative Warrants
Derivative Warrants | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Warrant Liabilities [Abstract] | |
Derivative Warrants | 22. Derivative warrants December 31, 2023 December 31, 2022 Balance, beginning of year 11,002 21,700 Change in fair value recognized in profit or loss ( 6,602 ) ( 10,783 ) Acquisition — 85 Balance, end of year 4,400 11,002 The carrying amount is an estimate of the fair value of the derivative warrants and is presented as a current liability. The derivative warrants are classified as a liability due to the Company’s share price being denominated in U.S. dollars, which creates variability as to the value in Canadian dollars when they are exercised. The derivative warrants are recorded as a current liability, however, the Company has no cash obligation nor is there any cash loss with respect to the derivative warrants, rather it will deliver common shares if and when warrants are exercised. The 118,067 remaining December 2018 performance warrants that were acquired in the Alcanna Transaction expired on December 18, 2023 . The following table summarizes outstanding derivative warrants as at December 31, 2023: Exercise price (US$) Number of warrants Weighted average contractual life 2020 Series A Warrants (1) 1.77 50,000 1.6 Unsecured Convertible Notes Warrants (1) 1.77 50,000 0.0 New Warrants (2) 2.29 9,833,333 0.6 9,933,333 0.6 (1) The conversion or exercise price, as applicable, is subject to full ratchet antidilution protection upon any subsequent transaction at a price lower than the price then in effect and standard adjustments in the event of any share split, share dividend, share combination, recapitalization or other similar transaction. If the Company issues, sells or enters into any agreement to issue or sell, any variable rate securities, the investors have the additional right to substitute the variable price (or formula) of such securities for the conversion or exercise price, as applicable. (2) The exercise price of the New Warrants was adjusted from US$ 15.00 to US$ 2.29 based on the July 26, 2022 Share Consolidation (as defined below) representing a share combination event (note 26(a) ). |
Lease Liabilities
Lease Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Lease liabilities [abstract] | |
Lease Liabilities | 23. Lease LIABILITIES December 31, 2023 December 31, 2022 Balance, beginning of year 169,831 33,470 Acquisitions (note 5) 4,336 142,106 Additions 4,362 7,497 Lease payments ( 45,017 ) ( 31,834 ) Renewals, remeasurements and dispositions 25,505 10,890 Tenant inducement allowances received 91 1,799 Accretion expense 7,921 5,903 Balance, end of year 167,029 169,831 Current portion 30,537 30,206 Long-term 136,492 139,625 During the year ended December 31, 2023, renewals, remeasurements and dispositions of $ 25.5 million mainly related to lease renewals. The following table presents the contractual undiscounted cash flows, excluding periods covered by lessee lease extension options that have been included in the determination of the lease term, related to the Company’s lease liabilities as at December 31, 2023: December 31, 2023 Less than one year 41,743 One to three years 69,660 Three to five years 51,372 Thereafter 35,719 Minimum lease payments 198,494 The Company has short-term leases with lease terms of 12 months or less as well as low-value leases. As these costs are incurred, they are recognized as general and administrative expense. These costs were immaterial in 2023 and 2022. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Other Liabilities [Abstract] | |
Other Liabilities | 24. Other liabilities December 31, 2023 December 31, 2022 Financial guarantee liability (A) 268 407 Deferred share units liability (B) 3,917 2,302 4,185 2,709 A) Financial guarantee liability For franchise operated locations where the Company provided an indemnity for its franchisees, lease payments are made directly to the landlord by the franchisee, and the obligation to make lease payments would only revert to the Company if a franchisee defaulted on their obligations under the terms of the sub-lease or lease. The Company has made an estimate of ECLs in the event of default by the franchisees in making lease payments. This amount is recognized as a financial guarantee liability in the consolidated statement of financial position, and changes in the estimated liability are recognized as a financial guarantee liability expense within finance costs (note 31) in the consolidated statement of loss and comprehensive loss. B) DSU liability DSUs are granted to directors and generally vest in equal instalments over one year. DSUs are settled by making a cash payment to the holder, equal to the fair value of the Company’s common shares calculated at the date of such payment, when a director leaves the Board. DSUs are accounted for as a liability instrument and measured at fair value based on the market value of the Company’s common shares at each period end. Changes in the fair value are recognized within share-based compensation expense (note 27(d) ). |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Major components of tax expense (income) [abstract] | |
Income Taxes | 25. Income taxes The following table reconciles the expected income tax expense (recovery) at the Canadian federal and provincial statutory income tax rates to the amounts recognized in profit and loss for the years ended December 31, 2023 and December 31, 2022: December 31, 2023 December 31, 2022 Loss before taxes ( 172,016 ) ( 379,770 ) Statutory income tax rates 23.0 % 23.0 % Expected income tax recovery ( 39,564 ) ( 87,347 ) Non-deductible share-based compensation 4,954 2,508 Revaluation of the fair value of warrant liabilities — ( 2,461 ) Non-controlling interest 1,118 8,167 Non-deductible portion of capital losses 1,107 7,458 Other ( 2,937 ) 5,409 Goodwill impairment — 35,919 Deferred tax benefits not recognized 35,322 23,005 Income tax (recovery) expense — ( 7,342 ) Details of the deferred tax assets (liabilities) are as follows: December 31, 2023 December 31, 2022 Deferred tax assets (liabilities): Property, plant and equipment ( 4,148 ) — Inventory 29,835 23,329 Biological assets ( 8,093 ) ( 9,451 ) Net investment in subleases ( 4,914 ) ( 5,363 ) Intangible assets ( 16,230 ) ( 16,632 ) Lease liabilities 465 ( 5,488 ) Marketable securities 3,159 14,981 Fair value of derivatives ( 83 ) — Equity-accounted investee 9 ( 1,376 ) Net deferred tax asset (liability) — — Deferred tax assets have not been recognized for the following deductible temporary differences: December 31, 2023 December 31, 2022 Unrecognized deductible temporary differences: Property, plant and equipment — 7,413 Intangible assets 183 183 Share issue costs 24,691 28,926 Investments 18,748 18,239 Lease liabilities 165,252 193,691 Financial obligations and other 3,917 2,300 Non-capital losses & scientific research and experimental development 986,422 490,326 Unrecognized deductible temporary differences 1,199,213 741,078 The movement in deferred income tax liability is as follows: December 31, 2023 December 31, 2022 Balance, beginning of year — — Recognized in profit and loss — ( 7,342 ) Recognized in other comprehensive income — 7,342 Balance, end of year — — The Company has $ 985.0 million (December 31, 2022 - $ 490.3 million) of non-capital losses available for future periods that will expire prior to 2035-2043. |
Share Capital and Warrants
Share Capital and Warrants | 12 Months Ended |
Dec. 31, 2023 | |
Share Capital And Warrants [Abstract] | |
Share Capital and Warrants | 26. Share capital and warrants A) Authorized The authorized capital of the Company consists of an unlimited number of voting common shares and preferred shares with no par value. On July 26, 2022, the Board approved a 1 to 10 share consolidation of the Company’s issued and outstanding common shares (the “Share Consolidation”). Each shareholder of record of the Company as of the close of business on the record date of July 25, 2022, received 1 common share for each 10 shares held on such date. All references to common shares, warrants, derivative warrant liabilities, simple warrants, performance warrants, stock options, RSUs and DSUs (excluding the Nova RSUs and DSUs) have been fully retrospectively adjusted to reflect the Share Consolidation. B) Issued and outstanding December 31, 2023 December 31, 2022 Note Number of Carrying Number of Carrying Balance, beginning of year 235,194,236 2,292,810 206,040,836 2,035,704 Share issuances 931,740 1,900 370,179 2,870 Share repurchases ( 546,700 ) ( 5,344 ) ( 4,252,489 ) ( 41,617 ) Acquisitions 5 27,605,782 83,953 32,060,135 287,129 Shares acquired and cancelled ( 2,261,778 ) ( 6,879 ) — — Employee awards exercised 1,852,573 9,510 975,575 8,724 Balance, end of year 262,775,853 2,375,950 235,194,236 2,292,810 (1) Included in employee awards exercised are 50,000 RSUs that vested and were exercised in December 2021; however, the common shares were not issued until January 2022. For the year ended December 31, 2023, th e Company purchased and cancelled 0.5 million common shares at a weighted average price of $ 2.78 (US$ 2.04 ) per common share for a total cost of $ 1.5 million. Accumulated deficit was reduced by $ 3.8 million, representing the excess of the average carrying value of the common shares over their purchase price. For the year ended December 31, 2022, the Company purchased and cancelled 4.3 million c ommon shares at a weighted average price of $ 3.12 (US$ 2.33 ) per common share for a total cost of $ 13.3 million. Accumulated deficit was reduced by $ 28.3 million, representing the excess of the average carrying value of the common shares over their purchase price. In connection with the Valens Transaction (note 5(c) ), the Company received and cancelled 2.2 million of its own common shares valued at $ 6.6 million based on the fair value on the closing date. At the time of the acquisition, the Company owned 6.5 million Valens common shares which were classified as marketable securities. In accordance with the Valens Transaction consideration, the Company received 2.2 million common shares ( 0.3334 of a SNDL common share for each Valens common share). (C) Common share purchase warrants Number of Warrants Carrying Amount Balance at December 31, 2021 356,612 8,092 Warrants expired ( 48,000 ) ( 5,832 ) Balance at December 31, 2022 308,612 2,260 Balance at December 31, 2023 308,612 2,260 During the year ended December 31, 2022, the warrants issued in relation to the acquisition of a financial obligation expired. The financial obligation related to an agreement from 2018 with a company controlled by the Company’s former executive chairman whereby equity financing was provided to the Company in exchange for quarterly royalty payments based on a prescribed formula derived from revenue. In 2019, the company that held the financial obligation was acquired by the Company for consideration that included the warrants, and the financial obligation was terminated. The following table summarizes outstanding warrants as at December 31, 2023: Warrants outstanding and exercisable Issued in relation to Weighted average exercise price Number of warrants Weighted average Financial services 45.98 54,400 5.6 Acquired from Inner Spirit (1) 3.37 190,212 0.2 Sun 8 9.40 64,000 2.0 $ 12.13 308,612 1.5 (1) Inner Spirit warrants are exchangeable for 0.00835 SNDL common shares in accordance with the Inner Spirit transaction consideration and have been presented based on the number of SNDL common shares that are issuable. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Share-based Compensation | 27. Share-based compensation The Company has a number of share-based compensation plans which include simple and performance warrants, stock options, RSUs and DSUs. Subsequent to the Company’s initial public offering, the Company established the stock option, RSU and DSU plans to replace the granting of simple warrants and performance warrants. The components of share-based compensation expense are as follows: Year ended 2023 2022 Equity-settled expense Simple warrants (A) ( 332 ) 1,299 Stock options (B) ( 1 ) 78 Restricted share units (1) (C) 13,350 9,423 Cash-settled expense Deferred share units (1)(2) (D) 2,383 ( 1,129 ) 15,400 9,671 (1) For the year ended December 31, 2023, the Company recognized share-based compensation expense under Nova’s RSU plan of $ 34 (2022 — recovery of $ 107 ) and share-based compensation expense under Nova’s DSU plan of $ 768 (2022 — $ 404 ) . (2) Cash-settled DSUs are accounted for as a liability and are measured at fair value based on the market value of the Company’s common shares at each reporting period. Fluctuations in the fair value are recognized during the period in which they occur. Equity-settled plans A) Simple and performance warrants The Company issued simple warrants and performance warrants to employees, directors and others at the discretion of the Board. Simple and performance warrants granted generally vest annually over a three-year period, simple warrants expire five years after the grant date and performance warrants expire five years after vesting criteria are met. The following table summarizes changes in the simple and performance warrants during the year ended December 31, 2023 and the year ended December 31, 2022: Simple Weighted Performance Weighted Balance at December 31, 2021 259,420 $ 48.60 138,720 $ 41.77 Forfeited ( 82,400 ) 57.77 ( 15,520 ) 37.86 Expired ( 11,200 ) 6.25 — 0.00 Balance at December 31, 2022 165,820 $ 46.91 123,200 $ 42.26 Forfeited ( 74,640 ) 63.86 ( 52,800 ) 54.55 Expired ( 24,480 ) 14.68 ( 16,000 ) 14.07 Balance at December 31, 2023 66,700 $ 39.77 54,400 $ 38.62 The following table summarizes outstanding simple and performance warrants as at December 31, 2023: Warrants outstanding Warrants exercisable Range of exercise prices Number of Weighted Weighted Number of Weighted Weighted Simple warrants $6.25 - $9.38 36,300 7.63 0.86 36,300 7.63 0.86 $29.69 - $45.31 7,200 34.90 1.82 7,200 34.90 1.82 $62.50 - $93.75 17,280 64.81 2.98 17,280 64.81 2.98 $125.00 - $312.50 5,920 169.62 3.92 4,640 156.07 3.61 66,700 $ 39.77 1.79 65,420 $ 36.26 1.72 Performance warrants $6.25 - $9.38 19,200 6.25 1.19 19,200 6.25 1.19 $29.69 - $45.31 23,200 32.60 1.27 23,200 32.60 1.27 $62.50 - $93.75 9,334 77.68 n/a 1,334 93.75 2.16 $125.00 - $218.75 2,666 187.50 n/a — — n/a 54,400 $ 38.62 n/a 43,734 $ 22.90 1.26 B) Stock options The Company issues stock options to employees and others at the discretion of the Board. Stock options granted generally vest annually in thirds over a three-year period and generally expire ten years after the grant date. The following table summarizes changes in stock options during the year ended December 31, 2023 and the year ended December 31, 2022: Stock options outstanding Weighted Balance at December 31, 2021 44,460 $ 13.28 Expired ( 100 ) 31.50 Balance at December 31, 2022 44,360 $ 13.24 Acquired (note 5(c)) 1,317,837 17.63 Forfeited ( 424,027 ) 17.21 Expired ( 84,465 ) 14.44 Balance at December 31, 2023 853,705 $ 17.92 The following table summarizes outstanding stock options as at December 31, 2023: Stock options outstanding Stock options exercisable Exercise prices Number of Weighted Number of Weighted $11.50 10,000 6.41 10,000 6.41 $11.90 8,160 6.49 8,160 6.49 $31.50 3,000 4.73 2,700 4.65 $11.79 - $38.88 (Legacy Valens) 832,545 2.36 832,545 2.36 853,705 2.46 853,405 2.45 C) Restricted share units RSUs are granted to employees and the vesting requirements and maximum term are at the discretion of the Board. RSUs are exchangeable for an equal number of common shares. The following table summarizes changes in RSUs during the year ended December 31, 2023 and the year ended December 31, 2022: RSUs Balance at December 31, 2021 753,593 Granted 1,728,557 Forfeited ( 175,245 ) Exercised ( 925,575 ) Balance at December 31, 2022 1,381,330 Granted 10,259,228 Forfeited ( 1,158,279 ) Exercised ( 1,852,573 ) Balance at December 31, 2023 8,629,706 Cash-settled plans D) Deferred share units DSUs are granted to directors and generally vest in equal instalments over one year . DSUs are settled by making a cash payment to the holder equal to the fair value of the Company’s common shares calculated at the date of such payment. DSUs are accounted for as a liability instrument and measured at fair value based on the market value of the Company’s common shares at each period end. As at December 31, 2023, the Company recognized a liability of $ 3.9 million relating to the fair value of cash-settled DSUs (December 31, 2022 – $ 2.3 million). The liability is included as a non-current liability within other liabilities (note 24). The following table summarizes changes in DSUs during the year ended December 31, 2023 and the year ended December 31, 2022: DSUs Balance at December 31, 2021 551,250 Granted 1,216,076 Exercised ( 58,943 ) Balance at December 31, 2022 1,708,383 Granted 689,950 Balance at December 31, 2023 2,398,333 As at December 31, 2023, 1.5 million D SUs were vested but none were exercisable. As at December 31, 2022 , 0.8 million were vested but none were exercisable. DSUs can only be exercised once a director ceases to be on the board. |
Gross Revenue
Gross Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue [abstract] | |
Gross Revenue | 28. Gross revenue Liquor retail revenue is derived from the sale of wines, beers and spirits to customers. Cannabis retail revenue is derived from retail cannabis sales to customers, franchise revenue consisting of royalty and franchise fee revenue, and other revenue consisting of millwork, supply and accessories revenue and proprietary licensing. Cannabis operations revenue is derived from contracts with customers and is comprised of sales to provincial boards that sell cannabis through their respective distribution models, sales to licensed producers for further processing, provision of proprietary cannabis processing services, product development, manufacturing and commercialization of cannabis consumer products and sales to medical customers. Year ended 2023 2022 Liquor retail revenue 578,895 462,180 Cannabis retail revenue Retail 270,454 192,710 Franchise 7,100 8,337 Other 12,426 4,563 Cannabis retail revenue 289,980 205,610 Cannabis operations revenue Provincial boards 71,894 58,728 Medical 24 9 Wholesale 15,682 3,167 Analytical testing 1,250 — Cannabis operations revenue 88,850 61,904 Gross revenue 957,725 729,694 The Company has recognized the following receivables from contracts with customers: December 31, 2023 December 31, 2022 Receivables, included in 'trade receivables' (note 10) 23,422 17,558 Receivables from contracts with customers are typically settled within 30 days. As at December 31, 2023, an impairment of $ 10.4 million (December 31, 2022 – $ 0.6 million) has been recognized on receivables from contracts with customers (note 34 ). |
Investment Revenue (Loss)
Investment Revenue (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Investment Revenue (Loss) [Abstract] | |
Investment Revenue (Loss) | 29. Investment revenue (Loss) Year ended 2023 2022 Interest and fee revenue Interest revenue from investments at amortized cost 3,781 3,660 Interest and fee revenue from investments at FVTPL 1,374 6,036 Interest revenue from cash 9,362 7,043 14,517 16,739 Year ended 2023 2022 Investment loss ( 9,258 ) ( 65,164 ) |
Other Operating Expenses
Other Operating Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Expenses by nature [abstract] | |
Other Operating Expenses | 30. Other operating expenses A) General and administrative Year ended 2023 2022 Salaries and wages 114,684 80,134 Consulting fees 4,320 1,934 Office and general 51,191 37,061 Professional fees 14,620 11,563 Merchant processing fees 6,332 4,748 Director fees 550 472 Other 8,028 4,256 199,725 140,168 B) Sales and marketing Year ended 2023 2022 Marketing 13,599 7,308 Events 114 102 Media 1,332 1,007 15,045 8,417 C) Restructuring costs Restructuring costs of $ 19.6 million for the year ended December 31, 2023 relate to severance costs from workforce reductions, legal costs that relate directly to the restructuring and other costs related to the closure of the Olds facility. |
Finance Costs
Finance Costs | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Finance Cost [Abstract] | |
Finance Costs | 31. Finance costs Year ended 2023 2022 Cash finance expense Other finance costs 81 178 81 178 Non-cash finance expense (income) Change in fair value of investments at FVTPL 3,317 36,087 Accretion on lease liabilities 7,921 5,903 Financial guarantee liability recovery ( 139 ) ( 59 ) Other 1,039 89 12,138 42,020 Interest income ( 857 ) ( 884 ) 11,362 41,314 |
Supplemental Cash Flow Disclosu
Supplemental Cash Flow Disclosures | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Disclosure [Abstract] | |
Supplemental Cash Flow Disclosures | 32. Supplemental cash flow disclosures Year ended 2023 2022 Cash provided by (used in): Accounts receivable 15,096 ( 5,815 ) Biological assets ( 4,888 ) 533 Inventory ( 17,411 ) 4,243 Prepaid expenses and deposits ( 3,515 ) 5,782 Assets held for sale 2,081 — Investments 692 918 Right of use assets ( 3,450 ) ( 17,510 ) Property, plant and equipment ( 97 ) 38 Accounts payable and accrued liabilities ( 20,809 ) ( 27,864 ) Lease liabilities 3,496 19,296 ( 28,805 ) ( 20,379 ) Changes in non-cash working capital relating to: Operating ( 32,875 ) ( 22,073 ) Investing 4,028 74 Financing 42 1,620 ( 28,805 ) ( 20,379 ) |
Loss Per Share
Loss Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per share [abstract] | |
Loss Per Share | 33. Loss per share Year ended 2023 2022 Weighted average shares outstanding (000s) Basic and diluted (1) 259,371 229,871 Continuing operations Net loss attributable to owners of the Company ( 168,125 ) ( 335,114 ) Per share - basic and diluted $ ( 0.65 ) $ ( 1.46 ) Discontinued operations Net loss attributable to owners of the Company ( 4,535 ) — Per share - basic and diluted $ ( 0.02 ) $ — Net loss attributable to owners of the Company ( 172,660 ) ( 335,114 ) Per share - basic and diluted $ ( 0.67 ) $ ( 1.46 ) (1) For the year ended December 31, 2023, there were 0.3 million equity classified warrants, 9.9 million derivative warrants, 0.1 million simple warrants, 0.1 million performance warrants, 0.9 million stock options and 8.6 million RSUs that were excluded from the calculation as the impact was anti-dilutive (year ended December 31, 2022 – 0.3 million equity classified warrants, 10.1 million derivative warrants, 0.2 million simple warrants, 0.1 million performance warrants, 0.04 million stock options and 1.4 million RSUs). |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial Instruments | 34. Financial instruments The financial instruments recognized on the consolidated statement of financial position are comprised of cash and cash equivalents, restricted cash, marketable securities, accounts receivable, investments at amortized cost, investments at FVTPL, accounts payable and accrued liabilities and derivative warrants. A) Fair value The carrying value of cash and cash equivalents, restricted cash, accounts receivable and accounts payable and accrued liabilities approximate their fair value due to the short-term nature of the instruments. The carrying value of investments at amortized cost approximate their fair value as the fixed interest rates approximate market rates for comparable transactions. Fair value measurements of marketable securities, investments at FVTPL and derivative warrants are as follows: Fair value measurements using December 31, 2023 Carrying Level 1 Level 2 Level 3 Recurring measurements: Financial assets Marketable securities 225 225 — — Investments at FVTPL 8,655 — — 8,655 Financial liabilities Derivative warrants (1) 4,400 — — 4,400 Fair value measurements using December 31, 2022 Carrying Level 1 Level 2 Level 3 Recurring measurements: Financial assets Marketable securities 21,926 21,926 — — Investments at FVTPL 72,761 — — 72,761 Financial liabilities Derivative warrants (1) 11,002 — — 11,002 (1) The carrying amount is an estimate of the fair value of the derivative warrants and is presented as a current liability. The Company has no cash obligation with respect to the derivative warrants, rather it will deliver common shares if and when warrants are exercised. Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Marketable securities are designated as FVTPL. The fair value of marketable securities is re-measured each reporting period with changes in fair value recognized in profit and loss. The fair value of marketable securities is estimated by using current quoted prices in active markets for identical assets. Level 2 – quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. As at December 31, 2023, the Company did not have any financial instruments measured at Level 2 fair value. Level 3 – unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Investments designated as FVTPL are re-measured each reporting period with changes in the fair value recognized in profit and loss within finance costs. The fair values of the investments were estimated by using a discounted cash flow analysis. The main assumptions used in the calculation were the determination of a credit-adjusted discount rate. Derivative warrants are designated as FVTPL. The fair value of derivative warrants is re-measured each reporting period with changes in fair value recognized in profit and loss within finance costs. The fair value of derivative warrants is estimated by using a valuation model. Assumptions used in these calculations include volatility, discount rate and various probability factors. At December 31, 2023 , a 10 % change in the material assumptions would change the estimated fair value of derivative warrant liabilities by approximat ely $ 0.7 million. There were no transfers between Levels 1, 2 and 3 inputs during the year. B) Credit risk management Credit risk is the risk of financial loss if the counterparty to a financial transaction fails to meet its obligations. The Company manages risk over its accounts receivable by issuing credit only to credit worthy counterparties. The Company limits its exposure to credit risk over its investments by ensuring the agreements governing the investments are secured in the event of counterparty default. The Company considers financial instruments to have low credit risk when its credit risk rating is equivalent to investment grade. The Company assumes that the credit risk on a financial asset has increased significantly if it is outstanding past the contractual payment terms. The Company considers a financial asset to be in default when the debtor is unlikely to pay its credit obligations to the Company. The Company applies the simplified approach under IFRS 9 to accounts receivable and has calculated ECLs based on lifetime expected credit losses, taking into consideration historical credit loss experience and financial factors specific to the debtors and general economic conditions. Impairment losses on accounts receivable recognized in profit or loss were as follows: As at December 31, 2023 December 31, 2022 Impairment loss on trade receivables 10,383 642 Impairment loss (reversal) on other receivables ( 31 ) 674 10,352 1,316 The movement in the allowance for impairment in respect of accounts receivable during the year ended December 31, 2023 was as follows: December 31, 2023 December 31, 2022 Balance, beginning of year 2,448 1,132 Net remeasurement of impairment loss allowance 10,352 1,316 Balance, end of year 12,800 2,448 The Company applies the general approach under IFRS 9 to investments, which is an assessment of whether the credit risk of a financial instrument has increased significantly since initial recognition. The general approach compares the risk of a default occurring at the reporting date with the risk of a default occurring at the date of initial recognition. The Company has evaluated the credit risk of its investments, taking into consideration the risk of default, historical credit loss experience, financial factors specific to the debtors and general economic conditions and determined the expected credit loss t o be $ 0.4 million f or the year ended December 31, 2023. The maximum amount of the Company’s credit risk exposure is the carrying amounts of cash and cash equivalents, accounts receivable and investments. The Company attempts to mitigate such exposure to its cash by investing only in financial institutions with investment grade credit ratings or secured investments. C) Market risk management Market risk is the risk that changes in market prices will affect the Company’s income or value of its holdings of financial instruments. The Company is exposed to market risk in that changes in market prices will cause fluctuations in the fair value of its marketable securities. The fair value of marketable securities is based on quoted market prices as the Company’s marketable securities are shares held of publicly traded entities. D) Liquidity risk management Liquidity risk is the risk that the Company cannot meet its financial obligations when due. The Company manages liquidity risk by monitoring operating and growth requirements. Management believes its current capital resources and its ability to manage cash flow and working capital levels will be sufficient to satisfy cash requirements associated with funding the Company’s operating expenses to maintain capacity and fund future development activities for at least the next 12 months. However, no assurance can be given that this will be the case or that future sources of capital will not be necessary. The timing of expected cash outflows relating to financial liabilities at December 31, 2023 is as follows: Less than One to three Three to five Thereafter Total Accounts payable and accrued liabilities 68,210 — — — 68,210 Financial guarantee liability — 268 — — 268 Balance, end of year 68,210 268 — — 68,478 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions [abstract] | |
Related Party Transactions | 35. Related party transactions The Company entered into the following related party transactions during the periods noted, in addition to those disclosed in note 19 relating to the Company’s joint venture. A member of key management personnel jointly controls a company that owns property leased to SNDL for one of its retail liquor stores. The lease term is from November 1, 2017 to October 31, 2027 and includes extension terms from November 1, 2027 to October 31, 2032 and November 1, 2032 to October 31, 2037. Monthly rent for the location includes base rent, common area costs and sign rent. The rent amounts are subject to increases in accordance with the executed lease agreement. For the year ended December 31, 2023, the Company paid $ 167.0 thousand in total rent with respect to this lease (March 31, 2022 to December 31, 2022 — $ 117.9 thousand). Compensation of key management personnel The Company considers directors and officers of the Company as key management personnel. Year ended 2023 2022 Salaries and short-term benefits 7,255 4,505 Share-based compensation 9,237 5,871 16,492 10,376 |
Capital Management
Capital Management | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of objectives, policies and processes for managing capital [abstract] | |
Capital Management | 36. Capital management The Company defines capital as shareholders’ equity and debt. Except as otherwise disclosed in these consolidated financial statements, there are no restrictions on the Company’s capital. The Company’s objectives with respect to the management of capital are to: • Maintain financial flexibility in order to preserve the ability to meet financial obligations; • Deploy capital to provide an appropriate investment return to shareholders; and • Maintain a capital structure that allows various financing alternatives. |
Non-Controlling Interests
Non-Controlling Interests | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of Non Controlling Interests [Abstract] | |
Non-Controlling Interests | 37. Non-controlling interests The following tables provide summarized financial information for the Company’s subsidiary, Nova, that has a material non-controlling interest effective the date of closing of the Alcanna Transaction, before inter-company eliminations. The Company does have subsidiaries with non-material non-controlling interests that are not presented in the following financial information. A) Nova summarized statement of financial position 2023 2022 Current assets 36,734 18,732 Current liabilities 29,690 19,892 Current net assets 7,044 ( 1,160 ) Non-current assets 87,665 94,419 Non-current liabilities 43,564 45,443 Non-current net assets 44,101 48,976 Net assets 51,145 47,816 B) Nova summarized statement of loss and comprehensive loss 2023 2022 Revenue 259,325 176,588 Earnings (loss) and comprehensive income (loss) 3,327 ( 7,672 ) C) Nova summarized statement of cash flows 2023 2022 Net cash provided by operating activities 11,721 5,848 Net cash used in investing activities ( 2,330 ) ( 5,549 ) Net cash used in financing activities ( 611 ) ( 183 ) Increase in cash 8,780 116 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Commitments And Contingencies [Abstract] | |
Commitments and contingencies | 38. Commitments and contingencies A) Commitments The Company has entered into certain supply agreements to provide dried cannabis and cannabis products to third parties. The contracts require the provision of various amounts of dried cannabis on or before certain dates. Should the Company not deliver the product in the agreed timeframe, financial penalties apply which may be paid either in product in-kind or cash. Under these agreements, the Company has accrued financial penalties payable as at December 31, 2023 of $ 2.5 million ( December 31, 2022 - $ 2.5 million). The corresponding expenses were recognized during the years ended December 31, 2019 ($ 1.5 million) and December 31, 2021 ($ 1.0 million). B) Contingencies From time to time, the Company and its subsidiaries are or may become involved in various legal claims and actions which arise in the ordinary course of their business and operations. While the outcome of any such claim or action is inherently uncertain, the Company believes that the losses that may result, if any, will not be material to the financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Cash and cash equivalents | CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash on hand, deposits held with banks and other short-term liquid investments with maturities of less than 90 days. |
Restricted cash | RESTRICTED CASH Restricted cash is recorded as current assets representing minimum funding requirements for two separate captive insurance structures. |
Biological assets | BIOLOGICAL ASSETS The Company’s biological assets consist of cannabis plants. The Company capitalizes all direct and indirect costs related to the biological transformation of the biological assets between the point of initial recognition and the point of harvest, including labour-related costs, consumables, materials, utilities, facilities costs, depreciation and quality and testing costs. Biological assets are then recorded at fair value and consist of cannabis plants in various stages of vegetation, including cannabis clones which have not been harvested. Net unrealized changes in fair value of biological assets less costs to sell during the period are included in the results of operations for the related period. Biological assets are valued in accordance with International Accounting Standard 41 – Agriculture (“IAS 41”) and are presented at their fair values less costs to sell up to the point of harvest. The fair values are determined using a model which estimates the expected harvest yield in grams for plants currently being cultivated, and then adjusts the amount for the expected selling price less costs to produce and sell per gram. The fair value measurements for biological assets have been categorized as Level 3 fair values based on the inputs to the valuation technique used. The Company’s method of accounting for biological assets attributes value accretion on a straight-line basis throughout the life of the biological asset from initial cloning to the point of harvest. The estimated expected harvest yield is based on assumptions of the estimated yield per plant and the weighted average number of growing weeks completed as a percentage of total expected growing weeks as at year end. These estimates are subject to volatility in market prices, market conditions, yields and costs, which could significantly affect the fair value of biological assets in future periods. Differences from the anticipated yield will be reflected in the net change in fair value of biological assets in future periods. |
Inventory | INVENTORY Procured cannabis Inventory is valued at the lower of cost and net realizable value. Cost of cannabis and biomass is comprised of initial third-party acquisition costs, plus analytical testing costs. Costs of extracted cannabis, hemp oil and finished goods inventory are comprised of initial acquisition cost of the biomass and all direct and indirect processing costs including labour-related costs, consumables, materials, packaging supplies, utilities, facility costs, analytical testing costs and production-related depreciation. Net realizable value is determined as the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to make the sale. Packaging and supplies are initially valued at cost and subsequently at the lower of cost and net realizable value. Harvested cannabis Inventories of harvested cannabis are valued at the lower of cost and net realizable value. Inventories of harvested cannabis are transferred from biological assets at their fair value less costs to sell up to the point of harvest, which becomes the initial deemed cost. All subsequent direct and indirect post-harvest costs are capitalized to inventory as incurred, including labour-related costs, consumables, materials, packaging supplies, utilities, facilities costs, as well as quality and testing costs. Net realizable value is determined as the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Cannabis supplies and consumables are initially valued at cost and subsequently at the lower of cost and net realizable value. The valuation of biological assets at the point of harvest is used as the measurement basis for all cannabis-based inventory and, thus, any critical estimates and judgements related to the valuation of biological assets are also applicable to inventory. The valuation of work-in-progress and finished goods also requires the estimate of conversion costs incurred, which become part of the carrying amount of the inventory. Retail inventory Retail inventory at Company-owned stores is valued at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of selling the final product. Cost is determined using the weighted average method and comprises direct purchase costs. Inventory is written down to its net realizable value when the cost of inventory is estimated to be unrecoverable due to obsolescence, damage or declining selling prices. The Company makes estimates related to obsolescence, future selling prices, seasonality, customer behavior and fluctuations in inventory levels. |
Property, plant, and equipment | PROPERTY, PLANT, AND EQUIPMENT Property, plant and equipment (“PP&E”) are carried at cost less accumulated depreciation, less any recognized impairment losses. The cost of additions, betterments, renewals, and interest during construction is capitalized. Each part of a component of PP&E with a cost that is significant in relation to the total cost of the component is depreciated separately. When the cost of replacing a portion of a component of PP&E is capitalized, the carrying amount of the replaced component is derecognized. Depreciation of construction in progress assets commences at the later of the assets being ready for their intended use or when a Health Canada producer’s licence is granted. The assets’ residual values and useful lives are reviewed, and adjusted as appropriate, at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by adjusting the depreciation period or method, as appropriate, and are treated as changes in accounting estimates. Any gain or loss arising on the disposal or retirement of a component of PP&E is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognized in profit and loss. PP&E are depreciated as they become available for use. Buildings are not depreciated until a producer’s licence is obtained, if required for operation. For assets available for use, depreciation is computed using the straight-line method over the estimated useful lives of the assets, as described below: • Production facilities — 20 years • Equipment — 1 to 10 years • Right of use assets and leasehold improvements — Shorter of estimated useful life or lease term |
Leases | LEASES A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. As a lessee The Company recognizes a right of use asset and a lease liability at the lease commencement date. The right of use asset is initially measured at cost and any direct costs of obtaining the lease, and subsequently at cost less any accumulated depreciation and impairment losses and adjusted for certain remeasurements of the lease liability. Depreciation is recognized on the lease asset over the shorter of the estimated useful life of the asset or the lease term. The lease liability is initially measured at the present value of the lease payments that have not been paid at the commencement date, discounted at the rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. Lease payments are allocated between the liability and accretion expense. Accretion expense is recognized on the lease liability using the effective interest rate method and payments are applied against the lease liability. The carrying amounts of the right of use assets, lease liability, and the resulting interest and depreciation expense are based on the implicit interest rate within the lease arrangement or, if this information is unavailable, the incremental borrowing rate. Incremental borrowing rates are based on judgements including economic environment, term, and the underlying risk inherent to the asset. As a lessor When the Company acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease. To classify each lease, the Company makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. Under a finance lease, the Company recognizes a receivable at an amount equal to the net investment in the lease which is the present value of the aggregate of lease payments receivable by the lessor. Under an operating lease, the Company recognizes lease payments received as income on a straight-line basis over the lease term. When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right of use asset arising from the head lease, not with reference to the underlying asset. |
Intangible assets | INTANGIBLE ASSETS Intangible assets are recorded at cost less accumulated amortization and impairment losses, if any. Intangible assets acquired in a business combination are measured at fair value at the acquisition date. Amortization of definite life intangibles is provided on a straight-line basis over their estimated useful lives, once the intangible asset is available for use. If the intangible asset is not yet available for use it will be tested for impairment on an annual basis in accordance with International Accounting Standard 38 – Intangible Assets (“IAS 38”). |
Joint arrangements | Joint arrangements Joint arrangements represent activities where the Company has joint control established by a contractual agreement. Joint control requires unanimous consent for the relevant financial and operational decisions. A joint arrangement is either a joint operation, whereby the parties have rights to the assets and obligations for the liabilities, or a joint venture, whereby the parties have rights to the net assets. For a joint operation, the parties consolidate their proportionate share of the assets, liabilities, revenues, expenses and cash flows of the arrangement with items of a similar nature on a line-by-line basis, from the date that joint control commences until the date that joint control ceases. Joint ventures are accounted for using the equity method of accounting and are initially recognized at cost, or fair value if acquired as part of a business combination. Joint ventures are adjusted thereafter for the post-acquisition change in the Company's share of the equity accounted investment's net assets. The Company’s consolidated financial statements include its share of the equity accounted investment's profit or loss and other comprehensive income, until the date that joint control ceases. When the Company’s share of losses exceeds its interest in an equity accounted investee, the carrying amount of that interest, including any long-term investments, is reduced to nil, and the recognition of further losses is discontinued except to the extent that the Company has an obligation or has made payments on behalf of the investee. Distributions from and contributions to investments in equity accounted investees are recognized when received or paid. |
Interests in equity-accounted investees | Interests in equity-accounted investees The Company’s interest in equity-accounted investees comprise interests in an associate and a joint venture. Associates are those entities in which the Company has significant influence, but not control or joint control, over the financial and operating policies. A joint venture is an arrangement in which the Company has joint control, whereby the Company has rights to the net assets of the arrangement, rather than rights to assets and obligations for its liabilities. Interests in associates and joint ventures are accounted for using the equity method. They are initially recognized at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Company’s share of the profit or loss and OCI of equity-accounted investees, until the date on which significant influence or joint control ceases. |
Financial instruments | FINANCIAL INSTRUMENTS The Company classifies the fair value of financial instruments according to the following hierarchy based on the amount of observable inputs used to value the instruments: Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 – quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Financial assets and liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. A financial asset or liability is measured initially at fair value plus, for an item not measured at fair value through profit and loss (“FVTPL”), transaction costs that are directly attributable to its acquisition or issuance. (i) Financial assets At initial recognition, a financial asset is classified and measured at: amortized cost, FVTPL or fair value through other comprehensive income (“FVOCI”) depending on the business model and contractual cash flows of the instrument. Financial assets at amortized cost are subsequently measured at amortized cost using the effective interest rate method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Financial assets at FVTPL are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss. Financial assets are derecognized when the rights to receive cash flows from the assets have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership. A substantial modification to the terms of an existing financial asset results in the derecognition of the financial asset and the recognition of a new financial asset at fair value. In the event that the modification to the terms of an existing financial asset do not result in a substantial difference in the contractual cash flows the gross carrying amount of the financial asset is recalculated and the difference resulting from the adjustment in the gross carrying amount is recognized in profit or loss. The Company’s cash and cash equivalents, restricted cash and accounts receivable, are measured at amortized cost. The Company’s marketable securities are measured at FVTPL. The Company’s investments are measured at amortized cost and FVTPL. The Company has no financial assets measured at FVOCI. (ii) Financial liabilities Financial liabilities are initially measured at amortized cost or FVTPL. Accounts payable and accrued liabilities are initially recognized at the amount required to be paid less any required discount to reduce the payables to fair value. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense and foreign exchange gains and losses, are recognized in profit or loss. Financial liabilities are derecognized when the liability is extinguished. A substantial modification of the terms of an existing financial liability is recorded as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of a financial liability extinguished and the consideration paid is recognized in profit or loss. Where a financial liability is modified in a way that does not constitute an extinguishment, the modified cash flows are discounted at the liability’s original effective interest rate. Transaction costs paid to third parties in a modification are amortized over the remaining term of the modified debt. The Company’s accounts payable and accrued liabilities and financial guarantee liability (included in other liabilities) are measured at amortized cost. The Company’s derivative warrant liabilities were designated as FVTPL upon initial recognition. |
Impairment of assets | IMPAIRMENT OF ASSETS Management assesses and continually monitors internal and external indicators of impairment relating to the Company’s assets. (i) Financial assets The Company applies an expected credit loss (“ECL”) model to all financial assets not held at FVTPL where credit losses that are expected to transpire in future years are provided for, irrespective of whether a loss event has occurred or not as at the statement of financial position date. For trade receivables, the Company has applied the simplified approach under International Financial Reporting Standard 9 – Financial Instruments (“IFRS 9”) and have calculated ECLs based on lifetime expected credit losses, taking into consideration historical credit loss experience and financial factors specific to the debtors and general economic conditions. ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of the difference between the cash flows due in accordance with the contract and the cash flow the Company expects to receive. ECLs are discounted at the effective interest rate of the financial asset. For financial assets measured at amortized cost, the Company has applied the general approach under IFRS 9 and has calculated ECLs based on lifetime expected credit losses, taking into consideration whether the credit risk of a financial asset has increased significantly since initial recognition. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Company considers quantitative and qualitative information and analysis, based on the Company’s historical experience and informed credit assessment, that includes forward-looking information. (ii) Non-financial assets The carrying amounts of the Company’s PP&E, right of use assets and intangible assets are assessed for impairment indicators and impairment reversal indicators at each reporting period end to determine whether there is an indication that such assets have experienced impairment or impairment reversal. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss or impairment reversal, if any. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s or group of asset’s estimated fair value less costs of disposal and its value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable independent cash inflows (a cash generating unit (“CGU”)). Where an impairment loss is subsequently determined to have reversed, the carrying amount of the asset or CGU is adjusted to the revised estimate of its recoverable amount but limited to the carrying amount that would have been determined had no impairment loss been recognized previously. A reversal of an impairment loss, net of any depreciation that would have been recorded, is recognized immediately in the statements of loss and comprehensive loss. Goodwill is assessed for impairment annually or when facts and circumstances indicate that it might be impaired. Goodwill is tested for impairment at a CGU level by comparing the carrying amount to the recoverable amount, which is determined as the greater of fair value less costs of disposal and value in use. Any excess of the carrying amount over the recoverable amount is the impaired amount. The recoverable amount estimates are categorized as Level 3 according to the fair value hierarchy. Impairment charges are recognized in profit and loss. Goodwill is reported at cost less any accumulated impairment. Goodwill impairments are not reversed. |
Provisions | Provisions A provision is recognized when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be reliably estimated. The amount of a provision is the best estimate of the consideration at the end of the reporting period. Provisions measured using estimated cash flows required to settle the obligation are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. A provision for onerous contracts is recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The Company has no onerous contracts during the years ended and as at December 31, 2023 and 2022. |
Non-monetary transactions | NON-MONETARY TRANSACTIONS All non-monetary transactions are measured at the fair value of the asset surrendered or the asset received, whichever is more reliable, unless the transaction lacks commercial substance, or the fair value cannot be reliably established. The lack of commercial substance requirement is met when the future cash flows are expected to change significantly as a result of the transaction. When the fair value of a non-monetary transaction cannot be reliably measured, it is recorded at the carrying amount (after reduction, when appropriate, for impairment) of the asset given up, adjusted by the fair value of any monetary consideration received or given. When the asset received or the consideration given consists of shares in an actively traded market, the value of those shares will be considered fair value. |
Compound financial instruments | COMPOUND FINANCIAL INSTRUMENTS The liability component of a compound financial instrument is recognized initially at the fair value of a similar liability which does not have an equity conversion option. The equity component is recognized initially as the difference between the fair value of the compound financial instrument taken as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability and equity components in proportion to their initial carrying amounts. Subsequent to initial recognition, the liability component of a compound financial instrument is measured at amortized cost using the effective interest method. The equity component of a compound financial instrument is not re-measured subsequent to initial recognition. Interest and losses and gains relating to the financial liability are recognized in profit and loss. On conversion, the financial liability is reclassified to equity; no gain or loss is recognized on conversion. |
Revenue | REVENUE Under International Financial Reporting Standard 15 – Revenue from Contracts with Customers (“IFRS 15”), to determine the amount and timing of revenue to be recognized, the Company follows a five-step model: 1. Identifying the contract with a customer 2. Identifying the performance obligations 3. Determining the transaction price 4. Allocating the transaction price to the performance obligations 5. Recognizing revenue when/as performance obligations are satisfied Cannabis revenue Gross revenue from the direct sale of cannabis for a fixed price is recognized when the Company transfers control of the goods to the customer. The transfer of control is specific to each contract and can range from the point of delivery to a specified length of time for the customer to accept the goods. The Company eliminates cannabis revenue and related cost of sales from sales to provincial boards when it is expected to be subsequently repurchased by its licensed retailer subsidiaries for resale, at which point the full retail sales revenue will be recognized. For contracts that permit the customer to return goods, revenue is recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Therefore, the amount of revenue recognized is adjusted for expected returns, which are estimated based on historical data and management’s expectation of future returns. In these circumstances, a refund liability and a right to recover returned goods asset are recognized. The right to recover returned goods asset is measured at the former carrying amount of the inventory less any expected costs to recover goods. The refund liability is included in accounts payable and accrued liabilities and the right to recover returned goods is included in inventory. The Company reviews its estimate of expected returns at each reporting date and updates the amounts of the asset and liability accordingly. Gross revenue earned in Canada includes excise taxes, which the Company pays as principal, but excludes duties and taxes collected on behalf of third parties. Net revenue is gross revenue less excise taxes. Gross revenue is recognized to the extent that it is highly probable that a significant reversal will not occur. Therefore, gross revenue is stated net of expected price discounts, allowances for customer returns and similar items. Generally, payment of the transaction price is due within credit terms that are consistent with industry practices, with no element of financing. Retail revenue Retail revenue consists of sales through corporate stores and e-commerce operations. Revenue at corporate stores is recognized at the point of sale when the customer takes control of the goods or service and is measured at the amount of consideration to which the Company expects to be entitled to, net of estimated returns, and sales incentives. The Company considers its performance obligations to be satisfied at the point of sale. The Company’s goods and services are generally capable of being distinct and are accounted for as a separate performance obligation. Sales through e-commerce operations are recognized when the customer takes control of the goods or services upon delivery and is measured at the amount of consideration to which the Company expects to be entitled, net of estimated returns, and sales incentives. It is the Company’s policy to sell merchandise with a limited right to return. Returns are only provided through exchanges or the issuance of a gift card. The Company sells gift cards. The sale of a gift card creates a future performance obligation. When (or as) the performance obligation is satisfied, the Company recognizes revenue as the amount of the transaction price. Franchise revenue Franchise fees are recognized at a point in time when the Company satisfies its performance obligations which is determined to be when the franchise begins operations. Performance obligations include site selection, lease assistance and training. Initial franchise fees are allocated to the performance obligations based on the estimated standalone selling prices. Funds received in advance of a franchise starting operations are recorded as franchise fee deposits. Ongoing royalty and advertisement fees, which are determined on a formula basis in accordance with the terms of the relevant franchise agreement, based on monthly revenues or margins of the franchisees, are recognized as revenue when the contractual performance obligations have been achieved or other service-related performance obligations have been completed. The performance obligations relate to providing support to the franchise partners and stewarding the Spiritleaf brand. While the franchisees are operating under the name Spiritleaf, they utilize the Spiritleaf trademark, thereby, the Company has performed its obligations to recognize the revenue, as per the franchise agreements. Other revenue Proprietary licensing revenue is generated from proprietary licensing services provided to customers. Revenue is recognized when the services are delivered to the customer at a point in time as outlined by the contract. The Company does not operate or manage these services separately from its primary retail sales or operations, and there are no significant costs of sale related to proprietary licensing revenue. Millwork revenue is defined as the proceeds and receivables related to the sale of millwork, which includes store fixtures. Millwork revenue is recognized at a point in time when a contractual exchange agreement has been entered into, and the performance obligation is considered to have been met when the millwork has been delivered to the franchise partner. Supply revenue represents revenues earned from the sales of custom Spiritleaf accessories to franchise locations. The Spiritleaf accessory revenue is earned when the goods are shipped. |
Research and development | RESEARCH AND DEVELOPMENT Research costs are expensed in the period incurred. Development costs are expensed in the period incurred unless the Company believes a development project meets the generally accepted criteria for deferral and amortization per IAS 38. Research and development costs comprise consulting fees, costs to cultivate and test cultivar batches to the point of commercialization and licence acquisition fees. No development costs have been capitalized as at December 31, 2023, or December 31, 2022. |
Share-based compensation | SHARE-BASED COMPENSATION The Company’s share-based compensation plans include equity-settled awards and cash-settled awards. The fair value of share-based compensation expenses is estimated using the Black-Scholes pricing model and relies on a number of estimates, such as the expected life of the award, the volatility of the underlying share price, the risk-free rate of return and the estimated rate of forfeiture of awards granted. Equity-settled Simple and performance warrants, stock options and restricted share units (“RSUs”) are granted from time to time to employees, directors, and others at the discretion of the Board. The grant date fair value of simple warrants, performance warrants, stock options and RSUs is recognized as share-based compensation expense, with a corresponding increase in contributed surplus, over the vesting period of the awards. On exercise of simple warrants, performance warrants and stock options, the cash consideration received is credited to share capital and the associated amount in contributed surplus is reclassified to share capital. On exercise of RSUs, the associated amount in contributed surplus is reclassified to share capital. Cash-settled DSUs are granted to directors and represent a right for the holder to receive a cash payment equal to the fair value of the Company’s common shares calculated at the date of such payment. Nova DSUs are granted to Nova directors and represent a right for the holder to receive a cash payment equal to the fair value of Nova’s common shares calculated at the date of such payment, or Nova common shares, at the discretion of Nova. DSUs are accounted for as a liability instrument and measured at fair value based on the market value of the Company’s common shares at each period end. The fair value is recognized as share-based compensation over the vesting period. Fluctuations in the fair value are recognized within share-based compensation in the period in which they occur. |
Income taxes | INCOME TAXES Income taxes are recognized in profit and loss, except to the extent that they relate to items recognized directly in equity, in which case the tax is recognized in equity. Current taxes are generally the expected income tax payable on taxable income for the reporting period, calculated using rates enacted or substantively enacted at the consolidated statements of financial position dates, and include any adjustment to income tax payable or recoverable in respect of previous periods. Uncertain income tax positions are accounted for using the standards applicable to current income tax assets and liabilities. Liabilities and assets are recorded to the extent they are deemed to be probable. Deferred tax is recognized using the asset and liability method, based on temporary differences between financial statement carrying amounts of assets and liabilities and their respective income tax bases. Deferred tax is determined using tax rates that have been enacted or substantively enacted at the consolidated statements of financial position date and are expected to apply when the related deferred tax asset is realized, or the deferred tax liability is settled. Deferred tax is not accounted for where it arises from initial recognition of an asset or liability in a transaction other than a business combination which, at the time of the transaction, affects neither accounting nor taxable income (loss). The amount of deferred tax recognized is based on the expected manner and timing of realization or settlement of the carrying amount of assets and liabilities. Deferred tax assets are recognized only to the extent that it is probable that future taxable income will be available for which the temporary differences can be utilized. Deferred tax assets are reviewed at each reporting date and adjusted to the extent that it is no longer probable that the related tax benefit will be realized. Tax assets and liabilities are offset when the Company has a legally enforceable right to offset the recognized amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. Deferred tax assets, including those arising from tax loss carry-forwards, require management to assess the likelihood that the Company will generate sufficient taxable income in future periods in order to utilize recognized deferred tax assets. Assumptions about the generation of future taxable profits depend on management’s estimates of future cash flows. In addition, future changes in tax laws could limit the ability of the Company to obtain tax deductions in future periods. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Company to realize the net deferred tax assets recorded at the reporting date could be affected. |
Business Combinations and goodwill | BUSINESS COMBINATIONS and goodwill The fair value of assets acquired and liabilities assumed in a business combination, including contingent consideration and goodwill, is estimated based on information available at the date of acquisition. Various valuation techniques are applied for measuring fair value including market comparables and discounted cash flows which rely on assumptions such as future selling prices, expected sales volumes, discount rates and future development and operating costs. Changes in these variables could significantly impact the carrying value of the net assets. Specific judgement is required in the identification of intangible assets. Business combinations are accounted for using the acquisition method of accounting when the acquired assets meet the definition of a business. The acquired identifiable assets and liabilities and contingent liabilities assumed in a business combination are measured at their fair values at the acquisition date. The cost of an acquisition is measured as the fair value of consideration transferred to the sellers, including cash paid and the fair value of assets given, equity instruments issued, and liabilities of the seller assumed at the acquisition date. Any excess of the fair value of the consideration paid over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recorded as goodwill. If the cost of the acquisition is less than the fair value of the net assets acquired, the difference is recognized immediately in profit or loss. Transaction costs associated with business combinations are expensed as incurred. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is not amortized. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each CGU that is expected to benefit from the synergies of the combination, if any, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. Each CGU represents the lowest level at which management monitors the goodwill. |
Non-controlling Interests | NON-CONTROLLING INTERESTS The Company recognizes non-controlling interests in an acquired entity either at fair value or at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets, determined on an acquisition-by-acquisition basis. |
Loss of control | Loss of control When the Company loses control over a subsidiary, it derecognizes the assets and liabilities of the subsidiary, and any related non-controlling interest and other components of equity. Any resulting gain or loss is recognized in profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost. |
Captive insurance | Captive Insurance The Company has secured insurance coverage for its directors and officers through two separate captive insurance structures. The first structure is a captive cell program entered into with a registered insurer for the purpose of holding and managing the Company’s coverage funds through a separate cell account (“Cell Captive”). The Company applies International Financial Reporting Standard 10 – Consolidated Financial Statements (“IFRS 10”) in its assessment of control as it relates to the Cell Captive. The Company’s accounting policy is to consolidate the Cell Captive. The Cell Captive funds are held as cash and may be invested according to the Company’s treasury policy. The funds are disclosed as restricted cash as the Cell Captive must be fully funded at all times. The Company will recognize any gains or losses from fair market value adjustments, interest and/or foreign exchange in the statements of profit (loss) and comprehensive income (loss). The second structure is a wholly owned subsidiary, Sundial Insurance (Bermuda) Ltd. (“SIBL”), incorporated to provide separate and additional coverage. The Company applies IFRS 10 in its assessment of control as it relates to SIBL. The Company’s accounting policy is to consolidate SIBL. The funds are disclosed as restricted cash as the funds were required for initial capitalization of the entity and there is a requirement to maintain minimum capital and surplus in accordance with industry regulations. |
Net earnings (loss) per share | Net earnings (loss) per share Basic earnings (loss) per share is calculated by dividing the net earnings (loss) for the period attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is calculated by adjusting the weighted average number of common shares outstanding for dilutive instruments. The number of shares included with respect to simple warrants, performance warrants, stock options, RSUs, equity classified warrants and liability classified warrants is computed using the treasury share method. |
New accounting standards | NEW ACCOUNTING STANDARDS The following accounting standards were effective for annual periods beginning on or after January 1, 2023 and did not have a material impact on the Company’s consolidated financial statements: • IFRS 17 Insurance Contracts • Definition of Accounting Estimate — Amendments to IAS 8 • Deferred Tax related to Assets and Liabilities arising from a Single Transaction — Amendments to IAS 12 There are new accounting standards, amendments to accounting standards and interpretations that are effective for annual periods beginning on or after January 1, 2024, that have not been applied in preparing the consolidated financial statements for the year ended December 31, 2023. These standards and interpretations are not expected to have a material impact on the Company’s consolidated financial statements and include: • Classification of Liabilities as Current or Non-current — Amendment to IAS 1 • Non-current Liabilities with Covenants — Amendments to IAS 1 • Lease Liability in a Sale and Leaseback — Amendments to IFRS 16 • Supplier Finance Arrangements — Amendments to IAS 7 and IFRS 7 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Estimated Use Full Life Of Asset Explanatory | For assets available for use, depreciation is computed using the straight-line method over the estimated useful lives of the assets, as described below: • Production facilities — 20 years • Equipment — 1 to 10 years • Right of use assets and leasehold improvements — Shorter of estimated useful life or lease term |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Alcanna | |
Disclosure of detailed information about business combination [line items] | |
Summary of Purchase Price Allocated | The fair value of consideration paid was as follows: Provisional Adjustments Final Cash 54,339 — 54,339 Issuance of common shares 287,129 — 287,129 341,468 — 341,468 |
Summary of Fair Value of Assets and Liabilities Acquired | The fair value of the assets and liabilities acquired was as follows: Provisional Adjustments Final Cash 23,190 — 23,190 Accounts receivable 1,868 — 1,868 Prepaid expenses and deposits 10,986 — 10,986 Inventory 105,022 — 105,022 Right of use assets 171,866 ( 31,117 ) 140,749 Property, plant and equipment 86,059 24,632 110,691 Intangible assets — 45,100 45,100 Goodwill 280,243 ( 129,308 ) 150,935 Accounts payable and accrued liabilities ( 36,703 ) ( 44 ) ( 36,747 ) Long-term debt ( 10,000 ) — ( 10,000 ) Lease liabilities ( 232,755 ) 90,736 ( 142,019 ) Derivative warrants ( 58 ) ( 27 ) ( 85 ) Non-controlling interest ( 58,250 ) 28 ( 58,222 ) 341,468 — 341,468 |
Zenabis | |
Disclosure of detailed information about business combination [line items] | |
Summary of Purchase Price Allocated | The fair value of consideration paid was as follows: Final Extinguishment of senior loan 18,215 18,215 |
Summary of Fair Value of Assets and Liabilities Acquired | The fair value of the assets and liabilities acquired was as follows: Final Cash 2,509 Accounts receivable 888 Biological assets 909 Prepaid expenses and deposits 1,856 Inventory 4,512 Assets held for sale 6,375 Right of use assets 32 Property, plant and equipment 4,658 Accounts payable and accrued liabilities ( 3,437 ) Lease liabilities ( 87 ) 18,215 |
Valens | |
Disclosure of detailed information about business combination [line items] | |
Summary of Purchase Price Allocated | The fair value of consideration paid was as follows: Provisional Adjustments Final Valens loan facility 61,512 — 61,512 Issuance of common shares 83,953 — 83,953 Contingent consideration — 602 602 145,465 602 146,067 |
Summary of Fair Value of Assets and Liabilities Acquired | Th e fair value of the assets and liabilities acquired was as follows: Provisional Adjustments Final Cash 3,615 — 3,615 Accounts receivable 21,361 — 21,361 Marketable securities 876 — 876 Prepaid expenses and deposits 4,980 — 4,980 Inventory 14,140 — 14,140 Assets held for sale 6,330 — 6,330 Right of use assets 2,882 — 2,882 Property, plant and equipment 63,030 ( 10,938 ) 52,092 Intangible assets 2,285 ( 785 ) 1,500 Goodwill 68,697 12,325 81,022 Accounts payable and accrued liabilities ( 34,185 ) — ( 34,185 ) Contractual obligation ( 5,339 ) — ( 5,339 ) Lease liabilities ( 3,207 ) — ( 3,207 ) 145,465 602 146,067 |
Superetta | |
Disclosure of detailed information about business combination [line items] | |
Summary of Purchase Price Allocated | The fair value of consideration paid was as follows: Extinguishment of promissory note 2,625 2,625 |
Summary of Fair Value of Assets and Liabilities Acquired | The fair value of the assets and liabilities acquired was as follows: Cash 80 Accounts receivable 30 Prepaid expenses and deposits 141 Inventory 371 Right of use assets 1,129 Property, plant and equipment 2,077 Accounts payable and accrued liabilities ( 74 ) Lease liabilities ( 1,129 ) 2,625 |
Inner Spirit | |
Disclosure of detailed information about business combination [line items] | |
Summary of Purchase Price Allocated | The fair value of consideration paid was as follows: Provisional Adjustments Final Cash 92,583 — 92,583 Issuance of common shares 26,216 — 26,216 Contingent consideration 1,150 — 1,150 119,949 — 119,949 |
Summary of Fair Value of Assets and Liabilities Acquired | The fair value of the assets and liabilities acquired was as follows: Provisional Adjustments Final Cash 9,808 — 9,808 Accounts receivable 750 ( 327 ) 423 Prepaid expenses and deposits 853 — 853 Inventory 2,733 2,011 4,744 Right of use assets — 5,730 5,730 Property, plant and equipment 12,108 ( 5,730 ) 6,378 Intangible assets — 46,000 46,000 Net investment in subleases 23,751 50 23,801 Goodwill 114,537 ( 42,041 ) 72,496 Accounts payable and accrued liabilities ( 2,678 ) — ( 2,678 ) Convertible debentures ( 12,025 ) — ( 12,025 ) Lease liabilities ( 29,481 ) ( 50 ) ( 29,531 ) Financial guarantee liability ( 407 ) — ( 407 ) Deferred tax liability — ( 5,643 ) ( 5,643 ) 119,949 — 119,949 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of analysis of single amount of discontinued operations [abstract] | |
Summary Results of Discontinued Operations | Results of discontinued operations Year ended 2023 2022 Net revenue 7,510 — Cost of sales 3,841 — Gross profit 3,669 — General and administrative 3,639 — Sales and marketing 1,817 — Depreciation and amortization 450 — Operating loss ( 2,237 ) — Finance costs ( 16 ) — Loss on disposition ( 2,282 ) — Net loss ( 4,535 ) — |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of operating segments [abstract] | |
Disclosure of Reportable Segments Explanatory | Liquor Cannabis (1) Cannabis (2) Investments (3) Corporate Total As at December 31, 2023 Total assets 320,239 206,988 208,295 717,751 19,891 1,473,164 Year ended December 31, 2023 Net revenue (4) 578,895 289,980 87,071 — ( 46,940 ) 909,006 Gross profit 137,286 73,690 ( 20,561 ) — — 190,415 Operating income (loss) 24,630 4,919 ( 112,445 ) 11,746 ( 91,668 ) ( 162,818 ) Earnings (loss) before income tax 19,190 1,310 ( 112,159 ) 8,429 ( 88,786 ) ( 172,016 ) (1) Cannabis retail includes the operations of Superette for the period February 8, 2023 to December 31, 2023 (note 5(d) ). (2) Cannabis operations includes the operations of Valens for the period January 18, 2023 to December 31, 2023 (note 5(c) ). (3) Total assets include cash and cash equivalents. (4) The Company has eliminated $ 46.9 million of cannabis operations revenue and equal cost of sales associated with sales to provincial boards that are expected to be subsequently repurchased by the Company’s licensed retailer subsidiaries for resale, at which point the full retail sales revenue will be recognized. The elimination was recorded in the Corporate segment. Liquor (1) Cannabis (1) Cannabis (2) Investments (3) Corporate Total As at December 31, 2022 Total assets 351,338 200,393 163,130 825,151 19,338 1,559,350 Year ended December 31, 2022 Net revenue 462,180 205,610 44,407 — — 712,197 Gross profit 106,307 47,334 ( 13,266 ) — — 140,375 Operating income (loss) 20,619 ( 180,956 ) ( 29,372 ) ( 91,275 ) ( 66,790 ) ( 347,774 ) Earnings (loss) before income tax 17,726 ( 183,055 ) ( 29,618 ) ( 127,362 ) ( 57,461 ) ( 379,770 ) (1) Liquor retail includes operations of Alcanna retail stores for the period March 31, 2022 to December 31, 2022, and cannabis retail includes operations of Nova retail stores for the period March 31, 2022 to December 31, 2022 (note 5(a) ). (2) Cannabis operations includes the operations of Zenabis for the period November 1, 2022 to December 31, 2022 (note 5(b) ). (3) Total assets include cash and cash equivalents. |
Restricted Cash (Tables)
Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restricted Cash [Abstract] | |
Disclosure of Restricted Cash | As at December 31, 2023 December 31, 2022 Captive insurance 19,616 19,044 Other 275 294 19,891 19,338 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Marketable Securities Disclosure [Abstract] | |
Disclosure of Marketable Securities | As at December 31, 2023 December 31, 2022 Balance, beginning of year 21,926 83,724 Acquisition (note 5(c)) 876 — Additions — 3,755 Dispositions ( 13,319 ) — Change in fair value recognized in profit or loss ( 9,258 ) ( 65,553 ) Balance, end of period 225 21,926 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of Accounts Receivable | As at December 31, 2023 December 31, 2022 Trade receivables 23,422 17,558 Other receivables 3,637 5,078 27,059 22,636 |
Biological Assets (Tables)
Biological Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Changes in biological assets [abstract] | |
Summary of Change in Carrying Value of Biological Assets | The Company’s biological assets consist of cannabis plants in various stages of vegetation, including plants which have not been harvested. The change in carrying value of biological assets is as follows: As at December 31, 2023 December 31, 2022 Balance, beginning of year 3,477 4,410 Increase in biological assets due to capitalized costs 21,501 27,749 Acquisition — 909 Net change in fair value of biological assets ( 7,936 ) ( 1,309 ) Transferred to inventory upon harvest ( 16,613 ) ( 28,282 ) Balance, end of year 429 3,477 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Classes of current inventories [abstract] | |
Summary of Inventories | As at December 31, 2023 December 31, 2022 Retail liquor 83,923 82,589 Retail cannabis 19,516 13,373 Millwork — 276 Harvested cannabis Raw materials, packaging and components 7,781 4,577 Extracted cannabis & hemp oils 11,989 — Work-in-progress 995 19,927 Finished goods 4,856 7,040 129,060 127,782 |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Assets Held For Sale [Abstract] | |
Summary of Assets Held for Sale Measured at Fair Value | At December 31, 2023, and December 31, 2022, assets held for sale were measured at their fair value less costs to sell and comprised of the following: Stellarton facility 6,375 6,375 |
Right Of Use Assets (Tables)
Right Of Use Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of quantitative information about right-of-use assets [abstract] | |
Schedule of Right Of Use Assets | Cost Balance at December 31, 2021 8,038 Acquisitions (note 5(a), note 5(b)) 140,781 Additions 6,103 Tenant inducement allowances ( 46 ) Dispositions and remeasurements 12,191 Balance at December 31, 2022 167,067 Acquisition (note 5(c), note 5(d)) 4,011 Additions 3,530 Renewals, remeasurements and dispositions 24,424 Balance at December 31, 2023 199,032 Accumulated depreciation and impairment Balance at December 31, 2021 1,321 Depreciation 25,227 Impairment 6,365 Balance at December 31, 2022 32,913 Depreciation 32,640 Impairment 3,852 Dispositions ( 52 ) Balance at December 31, 2023 69,353 Net book value Balance at December 31, 2022 134,154 Balance at December 31, 2023 129,679 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, plant and equipment [abstract] | |
Schedule of Property Plant and Equipment | Land Production facilities Leasehold improvements Equipment Construction Total Cost Balance at December 31, 2021 12,388 153,332 3,899 32,777 6,103 208,499 Acquisitions (note 5(a), note 5(b)) 130 4,528 64,059 44,263 2,369 115,349 Additions 57 256 3,465 5,907 982 10,667 Dispositions ( 611 ) ( 3,882 ) ( 609 ) ( 4,025 ) — ( 9,127 ) Balance at December 31, 2022 11,964 154,234 70,814 78,922 9,454 325,388 Acquisitions (note 5(c), note 5(d)) 8,661 24,330 3,660 17,518 — 54,169 Additions — — 2,739 5,609 102 8,450 Transfers from CIP — 882 — — ( 882 ) — Dispositions — 38 ( 314 ) ( 2,885 ) — ( 3,161 ) Balance at December 31, 2023 20,625 179,484 76,899 99,164 8,674 384,846 Accumulated depreciation and impairment Balance at December 31, 2021 — 131,867 411 13,928 5,821 152,027 Depreciation — 1,464 7,131 11,278 — 19,873 Impairment — — 7,794 7,415 — 15,209 Dispositions — ( 1,324 ) ( 610 ) ( 3,196 ) — ( 5,130 ) Balance at December 31, 2022 — 132,007 15,369 28,782 5,821 181,979 Depreciation — 2,526 11,675 15,796 — 29,997 Impairment — 10,825 1,697 8,924 — 21,446 Dispositions — 62 ( 293 ) ( 1,261 ) — ( 1,492 ) Balance at December 31, 2023 — 145,420 28,448 52,241 5,821 231,930 Net book value Balance at December 31, 2022 11,964 22,227 55,445 50,140 3,633 143,409 Balance at December 31, 2023 20,625 34,064 48,451 46,923 2,853 152,916 |
Net Investment In Subleases (Ta
Net Investment In Subleases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Net Investment In Subleases [Abstract] | |
Disclosure of Detailed Information Net Investment in Subleases Explanatory | December 31, 2023 December 31, 2022 Balance, beginning of year 23,319 26,562 Additions 832 1,408 Finance income 857 833 Rents recovered (payments made directly to landlords) ( 4,004 ) ( 4,141 ) Dispositions and remeasurements 362 ( 1,343 ) Balance, end of year 21,366 23,319 Current portion 2,970 3,701 Long-term 18,396 19,618 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about intangible assets [abstract] | |
Summary of Reconciliation of Changes in Intangible Assets and Goodwill | Brands and trademarks Franchise agreements Software Retail Total Cost Balance at December 31, 2021 41,445 10,000 — — 51,445 Acquisition (note 5(a)) 38,950 — 5,400 750 45,100 Additions 55 — 142 — 197 Dispositions ( 50 ) — — — ( 50 ) Balance at December 31, 2022 80,400 10,000 5,542 750 96,692 Acquisition (note 5(c)) 1,500 — — — 1,500 Additions — — 87 — 87 Dispositions — — ( 73 ) — ( 73 ) Balance at December 31, 2023 81,900 10,000 5,556 750 98,206 Accumulated amortization and impairment Balance at December 31, 2021 736 561 — — 1,297 Amortization 293 1,250 679 — 2,222 Impairment 18,288 — — — 18,288 Balance at December 31, 2022 19,317 1,811 679 — 21,807 Amortization 195 1,250 888 — 2,333 Impairment 935 — — — 935 Dispositions — — ( 18 ) — ( 18 ) Balance at December 31, 2023 20,447 3,061 1,549 — 25,057 Net book value Balance at December 31, 2022 61,083 8,189 4,863 750 74,885 Balance at December 31, 2023 61,453 6,939 4,007 750 73,149 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Investments [Abstract] | |
Investments Other Than Investments Accounted for Using Equity Method | As at December 31, 2023 December 31, 2022 Investments at amortized cost 24,405 24,493 Investments at FVTPL 8,655 72,761 33,060 97,254 Current portion 3,400 6,552 Long-term 29,660 90,702 |
Equity-Accounted Investees (Tab
Equity-Accounted Investees (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Interests In Other Entities [Abstract] | |
Schedule of Equity Method Investments Table | As at December 31, 2023 December 31, 2022 Interest in joint venture 538,331 519,255 |
Disclosure of joint ventures | The following table summarizes the carrying amount of the Company’s interest in the joint venture: Carrying amount Balance at December 31, 2021 412,858 Capital contributions 119,137 Share of net loss ( 43,002 ) Share of other comprehensive income 31,923 Distributions ( 1,661 ) Balance at December 31, 2022 519,255 Capital contributions 25,089 Share of net earnings 6,758 Share of other comprehensive income (loss) ( 12,771 ) Balance at December 31, 2023 538,331 |
Summary of Financial Information of SunStream | The following table summarizes the financial information of SunStream: As at December 31, 2023 December 31, 2022 Current assets (including cash and cash equivalents - 2023: $ 0.3 million, 2022: $ 1.5 million) 2,675 5,437 Non-current assets 532,740 509,418 Current liabilities ( 1,096 ) ( 1,146 ) Net assets (liabilities) ( 100 %) 534,319 513,709 Year ended December 31 2023 2022 Revenue (loss) 14,098 ( 35,046 ) Profit (loss) from operations 7,348 ( 42,627 ) Other comprehensive income (loss) ( 12,771 ) 31,923 Total comprehensive income (loss) ( 5,177 ) ( 10,619 ) |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill [Abstact] | |
Schedule of Changes in Goodwill | Net book value Balance at December 31, 2021 72,496 Acquisitions through business combinations (note 5(a)) 150,935 Impairment ( 156,171 ) Balance at December 31, 2022 67,260 Acquisitions through business combinations (note 5(c)) 81,022 Impairment ( 29,000 ) Balance at December 31, 2023 119,282 |
Schedule of Impairment Testing Goodwill | For the purpose of impairment testing, goodwill has been allocated as follows: December 31, 2023 December 31, 2022 Liquor retail 24,338 24,338 Cannabis retail 38,624 38,624 Cannabis retail franchise group 4,298 4,298 Cannabis operations - Valens 52,022 — 119,282 67,260 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of Accounts Payable and Accrued Liabilities | December 31, 2023 December 31, 2022 Trade payables 22,035 9,774 Accrued and other liabilities 46,175 38,379 68,210 48,153 |
Derivative Warrants (Tables)
Derivative Warrants (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Warrant Liabilities [Abstract] | |
Summary of Derivative Warrants | December 31, 2023 December 31, 2022 Balance, beginning of year 11,002 21,700 Change in fair value recognized in profit or loss ( 6,602 ) ( 10,783 ) Acquisition — 85 Balance, end of year 4,400 11,002 |
Summary of Outstanding Derivative Warrants | The following table summarizes outstanding derivative warrants as at December 31, 2023: Exercise price (US$) Number of warrants Weighted average contractual life 2020 Series A Warrants (1) 1.77 50,000 1.6 Unsecured Convertible Notes Warrants (1) 1.77 50,000 0.0 New Warrants (2) 2.29 9,833,333 0.6 9,933,333 0.6 (1) The conversion or exercise price, as applicable, is subject to full ratchet antidilution protection upon any subsequent transaction at a price lower than the price then in effect and standard adjustments in the event of any share split, share dividend, share combination, recapitalization or other similar transaction. If the Company issues, sells or enters into any agreement to issue or sell, any variable rate securities, the investors have the additional right to substitute the variable price (or formula) of such securities for the conversion or exercise price, as applicable. (2) The exercise price of the New Warrants was adjusted from US$ 15.00 to US$ 2.29 based on the July 26, 2022 Share Consolidation (as defined below) representing a share combination event (note 26(a) ). |
Lease Liabilities (Tables)
Lease Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Lease liabilities [abstract] | |
Summary of Lease Liabilities | December 31, 2023 December 31, 2022 Balance, beginning of year 169,831 33,470 Acquisitions (note 5) 4,336 142,106 Additions 4,362 7,497 Lease payments ( 45,017 ) ( 31,834 ) Renewals, remeasurements and dispositions 25,505 10,890 Tenant inducement allowances received 91 1,799 Accretion expense 7,921 5,903 Balance, end of year 167,029 169,831 Current portion 30,537 30,206 Long-term 136,492 139,625 |
Summary of Minimum Lease Payments | The following table presents the contractual undiscounted cash flows, excluding periods covered by lessee lease extension options that have been included in the determination of the lease term, related to the Company’s lease liabilities as at December 31, 2023: December 31, 2023 Less than one year 41,743 One to three years 69,660 Three to five years 51,372 Thereafter 35,719 Minimum lease payments 198,494 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Other Liabilities [Abstract] | |
Schedule Of Other Liabilities | December 31, 2023 December 31, 2022 Financial guarantee liability (A) 268 407 Deferred share units liability (B) 3,917 2,302 4,185 2,709 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Major components of tax expense (income) [abstract] | |
Summary of Income Tax Expense (Recovery) | The following table reconciles the expected income tax expense (recovery) at the Canadian federal and provincial statutory income tax rates to the amounts recognized in profit and loss for the years ended December 31, 2023 and December 31, 2022: December 31, 2023 December 31, 2022 Loss before taxes ( 172,016 ) ( 379,770 ) Statutory income tax rates 23.0 % 23.0 % Expected income tax recovery ( 39,564 ) ( 87,347 ) Non-deductible share-based compensation 4,954 2,508 Revaluation of the fair value of warrant liabilities — ( 2,461 ) Non-controlling interest 1,118 8,167 Non-deductible portion of capital losses 1,107 7,458 Other ( 2,937 ) 5,409 Goodwill impairment — 35,919 Deferred tax benefits not recognized 35,322 23,005 Income tax (recovery) expense — ( 7,342 ) |
Summary of Deferred Tax Assets (Liabilities) | Details of the deferred tax assets (liabilities) are as follows: December 31, 2023 December 31, 2022 Deferred tax assets (liabilities): Property, plant and equipment ( 4,148 ) — Inventory 29,835 23,329 Biological assets ( 8,093 ) ( 9,451 ) Net investment in subleases ( 4,914 ) ( 5,363 ) Intangible assets ( 16,230 ) ( 16,632 ) Lease liabilities 465 ( 5,488 ) Marketable securities 3,159 14,981 Fair value of derivatives ( 83 ) — Equity-accounted investee 9 ( 1,376 ) Net deferred tax asset (liability) — — |
Summary of Unrecognized Deductible Temporary Differences | Deferred tax assets have not been recognized for the following deductible temporary differences: December 31, 2023 December 31, 2022 Unrecognized deductible temporary differences: Property, plant and equipment — 7,413 Intangible assets 183 183 Share issue costs 24,691 28,926 Investments 18,748 18,239 Lease liabilities 165,252 193,691 Financial obligations and other 3,917 2,300 Non-capital losses & scientific research and experimental development 986,422 490,326 Unrecognized deductible temporary differences 1,199,213 741,078 |
Summary of Movement in Deferred Income Tax Liability | The movement in deferred income tax liability is as follows: December 31, 2023 December 31, 2022 Balance, beginning of year — — Recognized in profit and loss — ( 7,342 ) Recognized in other comprehensive income — 7,342 Balance, end of year — — |
Share Capital and Warrants (Tab
Share Capital and Warrants (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share Capital And Warrants [Abstract] | |
Summary of Issued and Outstanding | B) Issued and outstanding December 31, 2023 December 31, 2022 Note Number of Carrying Number of Carrying Balance, beginning of year 235,194,236 2,292,810 206,040,836 2,035,704 Share issuances 931,740 1,900 370,179 2,870 Share repurchases ( 546,700 ) ( 5,344 ) ( 4,252,489 ) ( 41,617 ) Acquisitions 5 27,605,782 83,953 32,060,135 287,129 Shares acquired and cancelled ( 2,261,778 ) ( 6,879 ) — — Employee awards exercised 1,852,573 9,510 975,575 8,724 Balance, end of year 262,775,853 2,375,950 235,194,236 2,292,810 (1) Included in employee awards exercised are 50,000 RSUs that vested and were exercised in December 2021; however, the common shares were not issued until January 2022. |
Summary of Common Share Purchase Warrants | (C) Common share purchase warrants Number of Warrants Carrying Amount Balance at December 31, 2021 356,612 8,092 Warrants expired ( 48,000 ) ( 5,832 ) Balance at December 31, 2022 308,612 2,260 Balance at December 31, 2023 308,612 2,260 |
Summary of Outstanding Warrants | The following table summarizes outstanding warrants as at December 31, 2023: Warrants outstanding and exercisable Issued in relation to Weighted average exercise price Number of warrants Weighted average Financial services 45.98 54,400 5.6 Acquired from Inner Spirit (1) 3.37 190,212 0.2 Sun 8 9.40 64,000 2.0 $ 12.13 308,612 1.5 (1) Inner Spirit warrants are exchangeable for 0.00835 SNDL common shares in accordance with the Inner Spirit transaction consideration and have been presented based on the number of SNDL common shares that are issuable. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Components of Share-based Compensation Expense | The components of share-based compensation expense are as follows: Year ended 2023 2022 Equity-settled expense Simple warrants (A) ( 332 ) 1,299 Stock options (B) ( 1 ) 78 Restricted share units (1) (C) 13,350 9,423 Cash-settled expense Deferred share units (1)(2) (D) 2,383 ( 1,129 ) 15,400 9,671 (1) For the year ended December 31, 2023, the Company recognized share-based compensation expense under Nova’s RSU plan of $ 34 (2022 — recovery of $ 107 ) and share-based compensation expense under Nova’s DSU plan of $ 768 (2022 — $ 404 ) . (2) Cash-settled DSUs are accounted for as a liability and are measured at fair value based on the market value of the Company’s common shares at each reporting period. Fluctuations in the fair value are recognized during the period in which they occur. |
Summary of Changes in Simple and Performance Warrants | The following table summarizes changes in the simple and performance warrants during the year ended December 31, 2023 and the year ended December 31, 2022: Simple Weighted Performance Weighted Balance at December 31, 2021 259,420 $ 48.60 138,720 $ 41.77 Forfeited ( 82,400 ) 57.77 ( 15,520 ) 37.86 Expired ( 11,200 ) 6.25 — 0.00 Balance at December 31, 2022 165,820 $ 46.91 123,200 $ 42.26 Forfeited ( 74,640 ) 63.86 ( 52,800 ) 54.55 Expired ( 24,480 ) 14.68 ( 16,000 ) 14.07 Balance at December 31, 2023 66,700 $ 39.77 54,400 $ 38.62 |
Summarizes Outstanding Simple and Performance Warrants | The following table summarizes outstanding simple and performance warrants as at December 31, 2023: Warrants outstanding Warrants exercisable Range of exercise prices Number of Weighted Weighted Number of Weighted Weighted Simple warrants $6.25 - $9.38 36,300 7.63 0.86 36,300 7.63 0.86 $29.69 - $45.31 7,200 34.90 1.82 7,200 34.90 1.82 $62.50 - $93.75 17,280 64.81 2.98 17,280 64.81 2.98 $125.00 - $312.50 5,920 169.62 3.92 4,640 156.07 3.61 66,700 $ 39.77 1.79 65,420 $ 36.26 1.72 Performance warrants $6.25 - $9.38 19,200 6.25 1.19 19,200 6.25 1.19 $29.69 - $45.31 23,200 32.60 1.27 23,200 32.60 1.27 $62.50 - $93.75 9,334 77.68 n/a 1,334 93.75 2.16 $125.00 - $218.75 2,666 187.50 n/a — — n/a 54,400 $ 38.62 n/a 43,734 $ 22.90 1.26 |
Summary of Changes in Stock Options | The following table summarizes changes in stock options during the year ended December 31, 2023 and the year ended December 31, 2022: Stock options outstanding Weighted Balance at December 31, 2021 44,460 $ 13.28 Expired ( 100 ) 31.50 Balance at December 31, 2022 44,360 $ 13.24 Acquired (note 5(c)) 1,317,837 17.63 Forfeited ( 424,027 ) 17.21 Expired ( 84,465 ) 14.44 Balance at December 31, 2023 853,705 $ 17.92 |
Summary of Outstanding Stock Options | The following table summarizes outstanding stock options as at December 31, 2023: Stock options outstanding Stock options exercisable Exercise prices Number of Weighted Number of Weighted $11.50 10,000 6.41 10,000 6.41 $11.90 8,160 6.49 8,160 6.49 $31.50 3,000 4.73 2,700 4.65 $11.79 - $38.88 (Legacy Valens) 832,545 2.36 832,545 2.36 853,705 2.46 853,405 2.45 |
Summary of Changes in Restricted Share Units | The following table summarizes changes in RSUs during the year ended December 31, 2023 and the year ended December 31, 2022: RSUs Balance at December 31, 2021 753,593 Granted 1,728,557 Forfeited ( 175,245 ) Exercised ( 925,575 ) Balance at December 31, 2022 1,381,330 Granted 10,259,228 Forfeited ( 1,158,279 ) Exercised ( 1,852,573 ) Balance at December 31, 2023 8,629,706 |
Summary of Changes in Deferred Share Units | The following table summarizes changes in DSUs during the year ended December 31, 2023 and the year ended December 31, 2022: DSUs Balance at December 31, 2021 551,250 Granted 1,216,076 Exercised ( 58,943 ) Balance at December 31, 2022 1,708,383 Granted 689,950 Balance at December 31, 2023 2,398,333 |
Gross Revenue (Tables)
Gross Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue [abstract] | |
Disaggregation of Revenue from Contracts with Customers | Liquor retail revenue is derived from the sale of wines, beers and spirits to customers. Cannabis retail revenue is derived from retail cannabis sales to customers, franchise revenue consisting of royalty and franchise fee revenue, and other revenue consisting of millwork, supply and accessories revenue and proprietary licensing. Cannabis operations revenue is derived from contracts with customers and is comprised of sales to provincial boards that sell cannabis through their respective distribution models, sales to licensed producers for further processing, provision of proprietary cannabis processing services, product development, manufacturing and commercialization of cannabis consumer products and sales to medical customers. Year ended 2023 2022 Liquor retail revenue 578,895 462,180 Cannabis retail revenue Retail 270,454 192,710 Franchise 7,100 8,337 Other 12,426 4,563 Cannabis retail revenue 289,980 205,610 Cannabis operations revenue Provincial boards 71,894 58,728 Medical 24 9 Wholesale 15,682 3,167 Analytical testing 1,250 — Cannabis operations revenue 88,850 61,904 Gross revenue 957,725 729,694 |
Summary of Receivables from Contracts with Customers | The Company has recognized the following receivables from contracts with customers: December 31, 2023 December 31, 2022 Receivables, included in 'trade receivables' (note 10) 23,422 17,558 |
Investment Revenue (Loss) (Tabl
Investment Revenue (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investment Revenue [Abstract] | |
Summary of Interest and Fee Revenue | Year ended 2023 2022 Interest and fee revenue Interest revenue from investments at amortized cost 3,781 3,660 Interest and fee revenue from investments at FVTPL 1,374 6,036 Interest revenue from cash 9,362 7,043 14,517 16,739 |
Summary of Investment Loss | Year ended 2023 2022 Investment loss ( 9,258 ) ( 65,164 ) |
Other Operating Expenses (Table
Other Operating Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Expenses by nature [abstract] | |
Summary of General and Administrative Expense | A) General and administrative Year ended 2023 2022 Salaries and wages 114,684 80,134 Consulting fees 4,320 1,934 Office and general 51,191 37,061 Professional fees 14,620 11,563 Merchant processing fees 6,332 4,748 Director fees 550 472 Other 8,028 4,256 199,725 140,168 |
Summary of Sales and Marketing Expense | B) Sales and marketing Year ended 2023 2022 Marketing 13,599 7,308 Events 114 102 Media 1,332 1,007 15,045 8,417 |
Finance Costs (Tables)
Finance Costs (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Finance Cost [Abstract] | |
Summary of Finance Costs | Year ended 2023 2022 Cash finance expense Other finance costs 81 178 81 178 Non-cash finance expense (income) Change in fair value of investments at FVTPL 3,317 36,087 Accretion on lease liabilities 7,921 5,903 Financial guarantee liability recovery ( 139 ) ( 59 ) Other 1,039 89 12,138 42,020 Interest income ( 857 ) ( 884 ) 11,362 41,314 |
Supplemental Cash Flow Disclo_2
Supplemental Cash Flow Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Disclosure [Abstract] | |
Summary of Changes in Non-cash Working Capital | Year ended 2023 2022 Cash provided by (used in): Accounts receivable 15,096 ( 5,815 ) Biological assets ( 4,888 ) 533 Inventory ( 17,411 ) 4,243 Prepaid expenses and deposits ( 3,515 ) 5,782 Assets held for sale 2,081 — Investments 692 918 Right of use assets ( 3,450 ) ( 17,510 ) Property, plant and equipment ( 97 ) 38 Accounts payable and accrued liabilities ( 20,809 ) ( 27,864 ) Lease liabilities 3,496 19,296 ( 28,805 ) ( 20,379 ) Changes in non-cash working capital relating to: Operating ( 32,875 ) ( 22,073 ) Investing 4,028 74 Financing 42 1,620 ( 28,805 ) ( 20,379 ) |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per share [abstract] | |
Summary of Loss Per Share | Year ended 2023 2022 Weighted average shares outstanding (000s) Basic and diluted (1) 259,371 229,871 Continuing operations Net loss attributable to owners of the Company ( 168,125 ) ( 335,114 ) Per share - basic and diluted $ ( 0.65 ) $ ( 1.46 ) Discontinued operations Net loss attributable to owners of the Company ( 4,535 ) — Per share - basic and diluted $ ( 0.02 ) $ — Net loss attributable to owners of the Company ( 172,660 ) ( 335,114 ) Per share - basic and diluted $ ( 0.67 ) $ ( 1.46 ) (1) For the year ended December 31, 2023, there were 0.3 million equity classified warrants, 9.9 million derivative warrants, 0.1 million simple warrants, 0.1 million performance warrants, 0.9 million stock options and 8.6 million RSUs that were excluded from the calculation as the impact was anti-dilutive (year ended December 31, 2022 – 0.3 million equity classified warrants, 10.1 million derivative warrants, 0.2 million simple warrants, 0.1 million performance warrants, 0.04 million stock options and 1.4 million RSUs). |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about financial instruments [abstract] | |
Fair value measurements of marketable securities, investments at FVTPL and derivative warrants | Fair value measurements of marketable securities, investments at FVTPL and derivative warrants are as follows: Fair value measurements using December 31, 2023 Carrying Level 1 Level 2 Level 3 Recurring measurements: Financial assets Marketable securities 225 225 — — Investments at FVTPL 8,655 — — 8,655 Financial liabilities Derivative warrants (1) 4,400 — — 4,400 Fair value measurements using December 31, 2022 Carrying Level 1 Level 2 Level 3 Recurring measurements: Financial assets Marketable securities 21,926 21,926 — — Investments at FVTPL 72,761 — — 72,761 Financial liabilities Derivative warrants (1) 11,002 — — 11,002 (1) The carrying amount is an estimate of the fair value of the derivative warrants and is presented as a current liability. The Company has no cash obligation with respect to the derivative warrants, rather it will deliver common shares if and when warrants are exercised. |
Summary of Impairment Losses on Accounts Receivable Recognized in Profit or Loss | Impairment losses on accounts receivable recognized in profit or loss were as follows: As at December 31, 2023 December 31, 2022 Impairment loss on trade receivables 10,383 642 Impairment loss (reversal) on other receivables ( 31 ) 674 10,352 1,316 |
Summary of Movement in Allowance for Impairment in Respect of Accounts Receivable | The movement in the allowance for impairment in respect of accounts receivable during the year ended December 31, 2023 was as follows: December 31, 2023 December 31, 2022 Balance, beginning of year 2,448 1,132 Net remeasurement of impairment loss allowance 10,352 1,316 Balance, end of year 12,800 2,448 |
Timing of Expected Cash Outflows Relating to Financial Liabilities | The timing of expected cash outflows relating to financial liabilities at December 31, 2023 is as follows: Less than One to three Three to five Thereafter Total Accounts payable and accrued liabilities 68,210 — — — 68,210 Financial guarantee liability — 268 — — 268 Balance, end of year 68,210 268 — — 68,478 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions [abstract] | |
Compensation of Key Management Personnel | Compensation of key management personnel The Company considers directors and officers of the Company as key management personnel. Year ended 2023 2022 Salaries and short-term benefits 7,255 4,505 Share-based compensation 9,237 5,871 16,492 10,376 |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of Non Controlling Interests [Abstract] | |
Summary of detailed information about non material non-controlling interests | The Company does have subsidiaries with non-material non-controlling interests that are not presented in the following financial information. A) Nova summarized statement of financial position 2023 2022 Current assets 36,734 18,732 Current liabilities 29,690 19,892 Current net assets 7,044 ( 1,160 ) Non-current assets 87,665 94,419 Non-current liabilities 43,564 45,443 Non-current net assets 44,101 48,976 Net assets 51,145 47,816 B) Nova summarized statement of loss and comprehensive loss 2023 2022 Revenue 259,325 176,588 Earnings (loss) and comprehensive income (loss) 3,327 ( 7,672 ) C) Nova summarized statement of cash flows 2023 2022 Net cash provided by operating activities 11,721 5,848 Net cash used in investing activities ( 2,330 ) ( 5,549 ) Net cash used in financing activities ( 611 ) ( 183 ) Increase in cash 8,780 116 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure Of Significant Accounting Policies [Line Items] | ||
Depreciation method, property, plant and equipment | straight-line method | |
Onerous contracts provision | $ 0 | $ 0 |
Gain loss on conversion of financial liability reclassified to equity | 0 | |
Development costs capitalized | $ 0 | $ 0 |
Sun 8 Holdings Inc | ||
Disclosure Of Significant Accounting Policies [Line Items] | ||
Estimated useful life of intangible assets | 15 years | |
Top of Range | ||
Disclosure Of Significant Accounting Policies [Line Items] | ||
Cash and cash equivalents maturities period | 90 days |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Production Facilities | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Estimated useful life of property plant and equipment | 20 years |
Equipment | Bottom of Range | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Estimated useful life of property plant and equipment | 1 year |
Equipment | Top of Range | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Estimated useful life of property plant and equipment | 10 years |
Right of Use Assets and Leasehold Improvements | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Estimated useful life of property plant and equipment | Shorter of estimated useful life or lease term |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 9 Months Ended | 10 Months Ended | 11 Months Ended | 12 Months Ended | |||||||
Jan. 17, 2023 CAD ($) shares | Mar. 31, 2022 CAD ($) shares $ / shares | Jun. 20, 2021 | Feb. 07, 2023 CAD ($) | Jan. 17, 2023 CAD ($) shares | Dec. 31, 2022 CAD ($) | Mar. 30, 2022 CAD ($) | Dec. 31, 2022 CAD ($) | Oct. 31, 2022 CAD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2022 CAD ($) | Jul. 20, 2021 CAD ($) shares | |
Inner Spirit | ||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||
Business combination, Transaction end date | Jul. 20, 2021 | |||||||||||||
Cash consideration | $ 92,583,000 | |||||||||||||
Cash transferred for each ordinary shares of acquire | $ 0.3 | |||||||||||||
Issuance of common shares | shares | 2,400,000 | |||||||||||||
Issuance of common shares, value | $ 26,216,000 | |||||||||||||
Number of instruments or interests issued or issuable for each ordinary shares of acquire | shares | 0.00835 | |||||||||||||
Contingent consideration | $ 1,150,000 | |||||||||||||
Alcanna | ||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||
Business Combination Transaction Initiated Date | Jan. 06, 2022 | |||||||||||||
Business combination, Transaction end date | Mar. 31, 2022 | |||||||||||||
Description of acquiree | Alcanna is a Canadian liquor retailer, operating predominantly in Alberta under its three retail brands, “Wine and Beyond”, “Liquor Depot” and “Ace Liquor”. | |||||||||||||
Cash consideration | $ 54,339,000 | |||||||||||||
Cash transferred for each ordinary shares of acquire | $ 1.5 | |||||||||||||
Issuance of common shares | shares | 32,100,000 | |||||||||||||
Issuance of common shares, value | $ 287,129,000 | |||||||||||||
Number of instruments or interests issued or issuable for each ordinary shares of acquire | shares | 0.885 | |||||||||||||
Revenue | $ 639,500,000 | |||||||||||||
Net earnings (loss) | $ 101,000,000 | |||||||||||||
Revenue increased amount | $ 162,500,000 | |||||||||||||
Net income (loss) | $ (25,500,000) | |||||||||||||
Acquisition-related costs for business transaction | $ 7,000,000 | |||||||||||||
Percentage of fair value of non-controlling | 37% | |||||||||||||
Share price transaction | $ / shares | $ 2.66 | |||||||||||||
Payment of acquired long-term debt | $ 10,000,000 | |||||||||||||
Zenabis | ||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||
Revenue | $ 400,000 | |||||||||||||
Net earnings (loss) | $ 1,800,000 | |||||||||||||
Revenue increased amount | $ 2,000,000 | |||||||||||||
Net income (loss) | $ 9,000,000 | |||||||||||||
Acquisition-related costs for business transaction | $ 800,000 | |||||||||||||
Valens | ||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||
Issuance of common shares | shares | 27,600,000 | 27,600,000 | ||||||||||||
Issuance of common shares, value | $ 83,953,000 | $ 83,953,000 | ||||||||||||
Number of instruments or interests issued or issuable for each ordinary shares of acquire | shares | 0.3334 | 0.3334 | ||||||||||||
Contingent consideration | $ 602,000 | $ 602,000 | ||||||||||||
Revenue | $ 99,100,000 | |||||||||||||
Net earnings (loss) | $ 85,800,000 | |||||||||||||
Revenue increased amount | 4,200,000 | |||||||||||||
Net income (loss) | 2,100,000 | |||||||||||||
Acquisition-related costs for business transaction | $ 2,800,000 | |||||||||||||
Non-revolving term loan facility | 60,000,000 | 60,000,000 | ||||||||||||
Valens | Valens Stock Option | ||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||
Contingent consideration | $ 600,000 | $ 600,000 | ||||||||||||
Superette | ||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||
Revenue | $ 3,800,000 | |||||||||||||
Net earnings (loss) | $ 2,000,000 | |||||||||||||
Revenue increased amount | $ 500,000 | |||||||||||||
Net income (loss) | $ 100,000 | |||||||||||||
Acquisition-related costs for business transaction | $ 700,000 | |||||||||||||
Nova | Alcanna | ||||||||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||||||||
Percentage of equity interest | 63% |
Business Acquisitions - Summary
Business Acquisitions - Summary of Purchase Price Allocated (Details) - CAD ($) $ in Thousands | Feb. 07, 2023 | Jan. 17, 2023 | Nov. 01, 2022 | Mar. 31, 2022 | Jul. 20, 2021 |
Alcanna | |||||
Disclosure of detailed information about business combination [line items] | |||||
Cash | $ 54,339 | ||||
Issuance of common shares | 287,129 | ||||
Total Purchase Price | 341,468 | ||||
Zenabis | |||||
Disclosure of detailed information about business combination [line items] | |||||
Extinguishment of senior loan | $ 18,215 | ||||
Total Purchase Price | $ 18,215 | ||||
Valens | |||||
Disclosure of detailed information about business combination [line items] | |||||
Issuance of common shares | $ 83,953 | ||||
Valens loan facility | 61,512 | ||||
Contingent consideration | 602 | ||||
Total Purchase Price | 146,067 | ||||
Superetta | |||||
Disclosure of detailed information about business combination [line items] | |||||
Extinguishment of senior loan | $ 2,625 | ||||
Total Purchase Price | $ 2,625 | ||||
Inner Spirit | |||||
Disclosure of detailed information about business combination [line items] | |||||
Cash | $ 92,583 | ||||
Issuance of common shares | 26,216 | ||||
Contingent consideration | 1,150 | ||||
Total Purchase Price | 119,949 | ||||
Previously Reported | Alcanna | |||||
Disclosure of detailed information about business combination [line items] | |||||
Cash | 54,339 | ||||
Issuance of common shares | 287,129 | ||||
Total Purchase Price | $ 341,468 | ||||
Previously Reported | Valens | |||||
Disclosure of detailed information about business combination [line items] | |||||
Issuance of common shares | 83,953 | ||||
Valens loan facility | 61,512 | ||||
Total Purchase Price | 145,465 | ||||
Previously Reported | Inner Spirit | |||||
Disclosure of detailed information about business combination [line items] | |||||
Cash | 92,583 | ||||
Issuance of common shares | 26,216 | ||||
Contingent consideration | 1,150 | ||||
Total Purchase Price | $ 119,949 | ||||
Adjustments | Valens | |||||
Disclosure of detailed information about business combination [line items] | |||||
Contingent consideration | 602 | ||||
Total Purchase Price | $ 602 |
Business Acquisitions - Summa_2
Business Acquisitions - Summary of Fair Value of the Assets and Liabilities Acquired (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Feb. 07, 2023 | Jan. 17, 2023 | Dec. 31, 2022 | Nov. 01, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jul. 20, 2021 |
Disclosure Of Business Combinations [Line Items] | ||||||||
Net investment in subleases | $ 21,366 | $ 23,319 | $ 26,562 | |||||
Alcanna | ||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||
Cash | $ 23,190 | |||||||
Accounts receivable | 1,868 | |||||||
Prepaid expenses and deposits | 10,986 | |||||||
Inventory | 105,022 | |||||||
Right of use assets | 140,749 | |||||||
Property, plant and equipment | 110,691 | |||||||
Intangible assets | 45,100 | |||||||
Goodwill | 150,935 | |||||||
Accounts payable and accrued liabilities | (36,747) | |||||||
Long-term debt | (10,000) | |||||||
Lease liabilities | (142,019) | |||||||
Derivative warrants | (85) | |||||||
Non-controlling interest | (58,222) | |||||||
Total Purchase Price | 341,468 | |||||||
Alcanna | Previously Reported | ||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||
Cash | 23,190 | |||||||
Accounts receivable | 1,868 | |||||||
Prepaid expenses and deposits | 10,986 | |||||||
Inventory | 105,022 | |||||||
Right of use assets | 171,866 | |||||||
Property, plant and equipment | 86,059 | |||||||
Goodwill | 280,243 | |||||||
Accounts payable and accrued liabilities | (36,703) | |||||||
Long-term debt | (10,000) | |||||||
Lease liabilities | (232,755) | |||||||
Derivative warrants | (58) | |||||||
Non-controlling interest | (58,250) | |||||||
Total Purchase Price | 341,468 | |||||||
Alcanna | Adjustments | ||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||
Right of use assets | (31,117) | |||||||
Property, plant and equipment | 24,632 | |||||||
Intangible assets | 45,100 | |||||||
Goodwill | (129,308) | |||||||
Accounts payable and accrued liabilities | (44) | |||||||
Lease liabilities | 90,736 | |||||||
Derivative warrants | (27) | |||||||
Non-controlling interest | $ 28 | |||||||
Zenabis | ||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||
Cash | $ 2,509 | |||||||
Accounts receivable | 888 | |||||||
Biological assets | 909 | |||||||
Prepaid expenses and deposits | 1,856 | |||||||
Inventory | 4,512 | |||||||
Assets held for sale | 6,375 | |||||||
Right of use assets | 32 | |||||||
Property, plant and equipment | 4,658 | |||||||
Accounts payable and accrued liabilities | (3,437) | |||||||
Lease liabilities | (87) | |||||||
Total Purchase Price | $ 18,215 | |||||||
Valens | ||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||
Cash | $ 3,615 | |||||||
Accounts receivable | 21,361 | |||||||
Marketable securities | 876 | |||||||
Prepaid expenses and deposits | 4,980 | |||||||
Inventory | 14,140 | |||||||
Assets held for sale | 6,330 | |||||||
Right of use assets | 2,882 | |||||||
Property, plant and equipment | 52,092 | |||||||
Intangible assets | 1,500 | |||||||
Goodwill | 81,022 | |||||||
Accounts payable and accrued liabilities | (34,185) | |||||||
Contractual obligation | (5,339) | |||||||
Lease liabilities | (3,207) | |||||||
Total Purchase Price | 146,067 | |||||||
Valens | Previously Reported | ||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||
Cash | 3,615 | |||||||
Accounts receivable | 21,361 | |||||||
Marketable securities | 876 | |||||||
Prepaid expenses and deposits | 4,980 | |||||||
Inventory | 14,140 | |||||||
Assets held for sale | 6,330 | |||||||
Right of use assets | 2,882 | |||||||
Property, plant and equipment | 63,030 | |||||||
Intangible assets | 2,285 | |||||||
Goodwill | 68,697 | |||||||
Accounts payable and accrued liabilities | (34,185) | |||||||
Contractual obligation | (5,339) | |||||||
Lease liabilities | (3,207) | |||||||
Total Purchase Price | 145,465 | |||||||
Valens | Adjustments | ||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||
Property, plant and equipment | (10,938) | |||||||
Intangible assets | (785) | |||||||
Goodwill | 12,325 | |||||||
Total Purchase Price | $ 602 | |||||||
Superetta | ||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||
Cash | $ 80 | |||||||
Accounts receivable | 30 | |||||||
Prepaid expenses and deposits | 141 | |||||||
Inventory | 371 | |||||||
Right of use assets | 1,129 | |||||||
Property, plant and equipment | 2,077 | |||||||
Accounts payable and accrued liabilities | (74) | |||||||
Lease liabilities | (1,129) | |||||||
Total Purchase Price | $ 2,625 | |||||||
Inner Spirit | ||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||
Cash | $ 9,808 | |||||||
Accounts receivable | 423 | |||||||
Prepaid expenses and deposits | 853 | |||||||
Inventory | 4,744 | |||||||
Right of use assets | 5,730 | |||||||
Property, plant and equipment | 6,378 | |||||||
Intangible assets | 46,000 | |||||||
Net investment in subleases | 23,801 | |||||||
Goodwill | 72,496 | |||||||
Accounts payable and accrued liabilities | (2,678) | |||||||
Convertible debentures | (12,025) | |||||||
Lease liabilities | (29,531) | |||||||
Financial guarantee liability | (407) | |||||||
Deferred tax liability | (5,643) | |||||||
Total Purchase Price | 119,949 | |||||||
Inner Spirit | Previously Reported | ||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||
Cash | 9,808 | |||||||
Accounts receivable | 750 | |||||||
Prepaid expenses and deposits | 853 | |||||||
Inventory | 2,733 | |||||||
Property, plant and equipment | 12,108 | |||||||
Net investment in subleases | 23,751 | |||||||
Goodwill | 114,537 | |||||||
Accounts payable and accrued liabilities | (2,678) | |||||||
Convertible debentures | (12,025) | |||||||
Lease liabilities | (29,481) | |||||||
Financial guarantee liability | (407) | |||||||
Total Purchase Price | 119,949 | |||||||
Inner Spirit | Adjustments | ||||||||
Disclosure Of Business Combinations [Line Items] | ||||||||
Accounts receivable | (327) | |||||||
Inventory | 2,011 | |||||||
Right of use assets | 5,730 | |||||||
Property, plant and equipment | (5,730) | |||||||
Intangible assets | 46,000 | |||||||
Net investment in subleases | 50 | |||||||
Goodwill | (42,041) | |||||||
Lease liabilities | (50) | |||||||
Deferred tax liability | $ (5,643) |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
May 31, 2023 | Dec. 31, 2023 | |
Discontinued Operations [Abstract] | ||
Sale of discontinued operations | $ 3,100 | |
Loss on disposition | $ 2,300 | $ (4,535) |
Discontinued Operations - Summa
Discontinued Operations - Summary Results of Discontinued Operations (Details) - CAD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Disclosure of analysis of single amount of discontinued operations [line items] | ||||
Gross revenue | $ 957,725 | $ 729,694 | ||
Net revenue | 909,006 | [1] | 712,197 | |
Cost of sales | 689,338 | 558,089 | ||
Gross profit before fair value adjustments | 189,024 | 147,096 | ||
Change in fair value of biological assets | (7,936) | (1,309) | ||
Gross profit | 190,415 | 140,375 | ||
General and administrative | 199,725 | 140,168 | ||
Sales and marketing | 15,045 | 8,417 | ||
Depreciation and amortization | 60,216 | 40,945 | ||
Share-based compensation | 15,400 | 9,671 | ||
Goodwill impairment | 29,000 | 156,171 | ||
Operating loss | (162,818) | (347,774) | ||
Transaction costs | (3,718) | (1,352) | ||
Finance costs | 11,362 | 41,314 | ||
Gain on disposition of PP&E | (353) | (94) | ||
Loss on disposition | $ 2,300 | (4,535) | ||
Loss before income tax | (172,016) | (379,770) | ||
Income tax recovery | 0 | (7,342) | ||
Net loss | (176,551) | $ (372,428) | ||
Discontinued Operations | ||||
Disclosure of analysis of single amount of discontinued operations [line items] | ||||
Net revenue | 7,510 | |||
Cost of sales | 3,841 | |||
Gross profit | 3,669 | |||
General and administrative | 3,639 | |||
Sales and marketing | 1,817 | |||
Depreciation and amortization | 450 | |||
Operating loss | (2,237) | |||
Finance costs | (16) | |||
Loss on disposition | (2,282) | |||
Net loss | $ (4,535) | |||
[1] The Company has eliminated $ 46.9 million of cannabis operations revenue and equal cost of sales associated with sales to provincial boards that are expected to be subsequently repurchased by the Company’s licensed retailer subsidiaries for resale, at which point the full retail sales revenue will be recognized. The elimination was recorded in the Corporate segment. |
Segment Information - Additiona
Segment Information - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 CAD ($) Segment | Dec. 31, 2022 CAD ($) | |
Disclosure Of Operating Segments [Line Items] | ||
Number of reportable segments | Segment | 4 | |
Equity-accounted investees | $ 538,331 | $ 519,255 |
Share of profit (loss) of equity-accounted investees | $ 6,758 | $ (43,002) |
Liquor Retail | Operating segments [member] | ||
Disclosure Of Operating Segments [Line Items] | ||
Description of types of products and services from which each reportable segment derives its revenues | Liquor retail includes the sale of wines, beers and spirits through owned liquor stores. | |
Cannabis Retail | Operating segments [member] | ||
Disclosure Of Operating Segments [Line Items] | ||
Description of types of products and services from which each reportable segment derives its revenues | Cannabis retail includes the private sale of adult-use cannabis through owned and franchise retail cannabis stores. | |
Cannabis Operations | Operating segments [member] | ||
Disclosure Of Operating Segments [Line Items] | ||
Description of types of products and services from which each reportable segment derives its revenues | Cannabis operations include the cultivation, distribution and sale of cannabis for the adult-use and medical markets domestically and for export, and providing proprietary cannabis processing services, in addition to product development, manufacturing, and commercialization of cannabis consumer packaged goods. | |
Investments | Operating segments [member] | ||
Disclosure Of Operating Segments [Line Items] | ||
Description of types of products and services from which each reportable segment derives its revenues | Investments include the deployment of capital to investment opportunities. |
Segment Information - Disclosur
Segment Information - Disclosure of Reportable Segments Explanatory (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | ||||
Disclosure Of Operating Segments [Line Items] | |||||
Total assets | $ 1,473,164 | $ 1,559,350 | |||
Net revenue | 909,006 | [1] | 712,197 | ||
Gross profit | 190,415 | 140,375 | |||
Share of profit (loss) of equity-accounted investees | 6,758 | (43,002) | |||
Depreciation and amortization | 60,216 | 40,945 | |||
Operating income (loss) | (162,818) | (347,774) | |||
Earnings (loss) before income tax | (172,016) | (379,770) | |||
Operating segments [member] | Liquor Retail | |||||
Disclosure Of Operating Segments [Line Items] | |||||
Total assets | 320,239 | 351,338 | [2] | ||
Net revenue | 578,895 | [1] | 462,180 | [2] | |
Gross profit | 137,286 | 106,307 | [2] | ||
Operating income (loss) | 24,630 | 20,619 | [2] | ||
Earnings (loss) before income tax | 19,190 | 17,726 | [2] | ||
Operating segments [member] | Cannabis Retail | |||||
Disclosure Of Operating Segments [Line Items] | |||||
Total assets | 206,988 | [3] | 200,393 | [2] | |
Net revenue | 289,980 | [1],[3] | 205,610 | [2] | |
Gross profit | 73,690 | [3] | 47,334 | [2] | |
Operating income (loss) | 4,919 | [3] | (180,956) | [2] | |
Earnings (loss) before income tax | 1,310 | [3] | (183,055) | [2] | |
Operating segments [member] | Cannabis Operations | |||||
Disclosure Of Operating Segments [Line Items] | |||||
Total assets | 208,295 | [4] | 163,130 | [5] | |
Net revenue | 87,071 | [1],[4] | 44,407 | [5] | |
Gross profit | (20,561) | [4] | (13,266) | [5] | |
Operating income (loss) | (112,445) | [4] | (29,372) | [5] | |
Earnings (loss) before income tax | (112,159) | [4] | (29,618) | [5] | |
Operating segments [member] | Investments | |||||
Disclosure Of Operating Segments [Line Items] | |||||
Total assets | 717,751 | [6] | 825,151 | [7] | |
Operating income (loss) | 11,746 | [6] | (91,275) | [7] | |
Earnings (loss) before income tax | 8,429 | [6] | (127,362) | [7] | |
Corporate | |||||
Disclosure Of Operating Segments [Line Items] | |||||
Total assets | 19,891 | 19,338 | |||
Net revenue | [1] | (46,940) | |||
Operating income (loss) | (91,668) | (66,790) | |||
Earnings (loss) before income tax | $ (88,786) | $ (57,461) | |||
[1] The Company has eliminated $ 46.9 million of cannabis operations revenue and equal cost of sales associated with sales to provincial boards that are expected to be subsequently repurchased by the Company’s licensed retailer subsidiaries for resale, at which point the full retail sales revenue will be recognized. The elimination was recorded in the Corporate segment. Liquor retail includes operations of Alcanna retail stores for the period March 31, 2022 to December 31, 2022, and cannabis retail includes operations of Nova retail stores for the period March 31, 2022 to December 31, 2022 (note 5(a) ). Cannabis retail includes the operations of Superette for the period February 8, 2023 to December 31, 2023 (note 5(d) ). Cannabis operations includes the operations of Valens for the period January 18, 2023 to December 31, 2023 (note 5(c) ). Cannabis operations includes the operations of Zenabis for the period November 1, 2022 to December 31, 2022 (note 5(b) ). Total assets include cash and cash equivalents. Total assets include cash and cash equivalents. |
Segment information - Disclos_2
Segment information - Disclosure of Reportable Segments Explanatory (Parenthetical) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | |||
Disclosure of operating segments [line items] | ||||
Revenue | $ 909,006 | [1] | $ 712,197 | |
Corporate | ||||
Disclosure of operating segments [line items] | ||||
Revenue | [1] | (46,940) | ||
Cannabis Operations | Corporate | Provincial Boards | ||||
Disclosure of operating segments [line items] | ||||
Revenue | $ (46,900) | |||
[1] The Company has eliminated $ 46.9 million of cannabis operations revenue and equal cost of sales associated with sales to provincial boards that are expected to be subsequently repurchased by the Company’s licensed retailer subsidiaries for resale, at which point the full retail sales revenue will be recognized. The elimination was recorded in the Corporate segment. |
Restricted Cash - Summary of Di
Restricted Cash - Summary of Disclosure of Restricted Cash (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Restricted Cash [Abstract] | ||
Captive insurance | $ 19,616 | $ 19,044 |
Other | 275 | 294 |
Restricted cash and cash equivalents | $ 19,891 | $ 19,338 |
Marketable Securities - Disclos
Marketable Securities - Disclosure of Marketable Securities (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Marketable Securities Disclosure [Abstract] | ||
Balance, beginning of year | $ 21,926 | $ 83,724 |
Acquisition (note 5(c)) | 876 | 0 |
Additions | 0 | 3,755 |
Dispositions | (13,319) | 0 |
Change in fair value recognized in profit or loss | (9,258) | (65,553) |
Balance, end of period | $ 225 | $ 21,926 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Marketable Securities Disclosure [Abstract] | ||
Proceeds from disposition of marketable securities | $ 6,700,000 | $ 0 |
Loss on disposition of marketable securities | $ 8,600,000 | $ 0 |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Trade receivables | $ 23,422 | $ 17,558 |
Other receivables | 3,637 | 5,078 |
Accounts receivable | $ 27,059 | $ 22,636 |
Biological Assets - Summary of
Biological Assets - Summary of Change in Carrying Value of Biological Assets (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes in biological assets [abstract] | ||
Balance, beginning of year | $ 3,477 | $ 4,410 |
Increase in biological assets due to capitalized costs | 21,501 | 27,749 |
Acquisition | 0 | 909 |
Net change in fair value of biological assets | (7,936) | (1,309) |
Transferred to inventory upon harvest | (16,613) | (28,282) |
Balance, end of year | $ 429 | $ 3,477 |
Biological Assets - Additional
Biological Assets - Additional Information (Details) - kg | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes in biological assets [abstract] | ||
Estimated biological assets to be harvested | 2,230 | 3,904 |
Harvested biological assets | 15,064 | 19,854 |
Inventory - Summary of Inventor
Inventory - Summary of Inventories (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure Of Inventories [Line Items] | ||
Inventory | $ 129,060 | $ 127,782 |
Retail Liquor | ||
Disclosure Of Inventories [Line Items] | ||
Inventory | 83,923 | 82,589 |
Retail Cannabis | ||
Disclosure Of Inventories [Line Items] | ||
Inventory | 19,516 | 13,373 |
Millwork | ||
Disclosure Of Inventories [Line Items] | ||
Inventory | 0 | 276 |
Harvested Cannabis | ||
Disclosure Of Inventories [Line Items] | ||
Raw materials, packaging and components | 7,781 | 4,577 |
Extracted cannabis & hemp oils | 11,989 | 0 |
Work-in-progress | 995 | 19,927 |
Finished goods | $ 4,856 | $ 7,040 |
Inventory - Additional Informat
Inventory - Additional Information (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Classes of current inventories [abstract] | ||
Inventories recognized as expense | $ 689.3 | $ 558.1 |
Inventory write downs | 30.8 | 8.9 |
Provision for impaired and obsolete inventory | 30.6 | 7 |
Fair value component of excess and obsolete inventory provision | $ 0.2 | $ 1.9 |
Assets Held for Sale - Summary
Assets Held for Sale - Summary of Assets Held For Sale Measured at Fair Value (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets Held for Sale [Line Items] | ||
Assets held for sale | $ 6,375 | $ 6,375 |
Stellarton Facility | ||
Assets Held for Sale [Line Items] | ||
Assets held for sale | $ 6,375 | $ 6,375 |
Assets held for sale - Addition
Assets held for sale - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 CAD ($) | |
Mission Facility | |
Assets Held for Sale [Line Items] | |
Gain on disposal of assets held for sale | $ 0.1 |
Right Of Use Assets - Schedule
Right Of Use Assets - Schedule of Right Of Use Assets (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Net book value | $ 143,409 | |
Impairment | 2,800 | $ 12,800 |
Net book value | 152,916 | 143,409 |
Cost | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Net book value | 325,388 | 208,499 |
Acquisition (note 5) | 54,169 | 115,349 |
Additions | 8,450 | 10,667 |
Net book value | 384,846 | 325,388 |
Accumulated Depreciation and Impairment | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Net book value | 181,979 | 152,027 |
Depreciation | 29,997 | 19,873 |
Impairment | 21,446 | 15,209 |
Net book value | 231,930 | 181,979 |
Right of Use Assets | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Net book value | 134,154 | |
Impairment | 3,900 | 6,400 |
Renewals, remeasurements and dispositions | 24,400 | |
Net book value | 129,679 | 134,154 |
Right of Use Assets | Cost | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Net book value | 167,067 | 8,038 |
Acquisition (note 5) | 4,011 | 140,781 |
Additions | 3,530 | 6,103 |
Tenant inducement allowances | (46) | |
Dispositions and remeasurements | 12,191 | |
Renewals, remeasurements and dispositions | 24,424 | |
Net book value | 199,032 | 167,067 |
Right of Use Assets | Accumulated Depreciation and Impairment | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Net book value | 32,913 | 1,321 |
Depreciation | 32,640 | 25,227 |
Impairment | 3,852 | 6,365 |
Dispositions | (52) | |
Net book value | $ 69,353 | $ 32,913 |
Right Of Use Assets - Additiona
Right Of Use Assets - Additional Information (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Impairment losses of right of use assets | $ 2.8 | $ 12.8 |
Right of Use Assets | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Renewals, remeasurements and dispositions | 24.4 | |
Impairment losses of right of use assets | 3.9 | 6.4 |
Cannabis Retail Reporting Segment | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Impairment losses of right of use assets | 2.4 | 5.3 |
Cannabis Retail Reporting Segment | Right of Use Assets | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Impairment losses of right of use assets | 2.7 | 3.9 |
Liquor Retail Reporting Segment | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Impairment losses of right of use assets | 0.4 | 7.5 |
Liquor Retail Reporting Segment | Right of Use Assets | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Impairment losses of right of use assets | $ 1.2 | $ 2.5 |
Property Plant and Equipment -
Property Plant and Equipment - Schedule of Property Plant and Equipment (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure Of Property Plant And Equipment [Line Items] | ||
Net book value | $ 143,409 | |
Impairment | 2,800 | $ 12,800 |
Net book value | 152,916 | 143,409 |
Cost | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Net book value | 325,388 | 208,499 |
Acquisition (note 5) | 54,169 | 115,349 |
Additions | 8,450 | 10,667 |
Transfers from CIP | 0 | |
Dispositions | (3,161) | (9,127) |
Net book value | 384,846 | 325,388 |
Accumulated Depreciation and Impairment | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Net book value | 181,979 | 152,027 |
Depreciation | 29,997 | 19,873 |
Impairment | 21,446 | 15,209 |
Dispositions | (1,492) | (5,130) |
Net book value | 231,930 | 181,979 |
Land | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Net book value | 11,964 | |
Net book value | 20,625 | 11,964 |
Land | Cost | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Net book value | 11,964 | 12,388 |
Acquisition (note 5) | 8,661 | 130 |
Additions | 0 | 57 |
Transfers from CIP | 0 | |
Dispositions | 0 | (611) |
Net book value | 20,625 | 11,964 |
Land | Accumulated Depreciation and Impairment | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Net book value | 0 | 0 |
Depreciation | 0 | 0 |
Impairment | 0 | 0 |
Dispositions | 0 | 0 |
Net book value | 0 | 0 |
Production Facilities | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Net book value | 22,227 | |
Net book value | 34,064 | 22,227 |
Production Facilities | Cost | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Net book value | 154,234 | 153,332 |
Acquisition (note 5) | 24,330 | 4,528 |
Additions | 0 | 256 |
Transfers from CIP | 882 | |
Dispositions | 38 | (3,882) |
Net book value | 179,484 | 154,234 |
Production Facilities | Accumulated Depreciation and Impairment | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Net book value | 132,007 | 131,867 |
Depreciation | 2,526 | 1,464 |
Impairment | 10,825 | 0 |
Dispositions | 62 | (1,324) |
Net book value | 145,420 | 132,007 |
Leasehold Improvements | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Net book value | 55,445 | |
Impairment | 1,700 | |
Net book value | 48,451 | 55,445 |
Leasehold Improvements | Cost | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Net book value | 70,814 | 3,899 |
Acquisition (note 5) | 3,660 | 64,059 |
Additions | 2,739 | 3,465 |
Transfers from CIP | 0 | |
Dispositions | (314) | (609) |
Net book value | 76,899 | 70,814 |
Leasehold Improvements | Accumulated Depreciation and Impairment | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Net book value | 15,369 | 411 |
Depreciation | 11,675 | 7,131 |
Impairment | 1,697 | 7,794 |
Dispositions | (293) | (610) |
Net book value | 28,448 | 15,369 |
Equipment | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Net book value | 50,140 | |
Impairment | 1,100 | |
Net book value | 46,923 | 50,140 |
Equipment | Cost | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Net book value | 78,922 | 32,777 |
Acquisition (note 5) | 17,518 | 44,263 |
Additions | 5,609 | 5,907 |
Transfers from CIP | 0 | |
Dispositions | (2,885) | (4,025) |
Net book value | 99,164 | 78,922 |
Equipment | Accumulated Depreciation and Impairment | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Net book value | 28,782 | 13,928 |
Depreciation | 15,796 | 11,278 |
Impairment | 8,924 | 7,415 |
Dispositions | (1,261) | (3,196) |
Net book value | 52,241 | 28,782 |
Construction in Progress | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Net book value | 3,633 | |
Net book value | 2,853 | 3,633 |
Construction in Progress | Cost | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Net book value | 9,454 | 6,103 |
Acquisition (note 5) | 0 | 2,369 |
Additions | 102 | 982 |
Transfers from CIP | (882) | |
Dispositions | 0 | 0 |
Net book value | 8,674 | 9,454 |
Construction in Progress | Accumulated Depreciation and Impairment | ||
Disclosure Of Property Plant And Equipment [Line Items] | ||
Net book value | 5,821 | 5,821 |
Depreciation | 0 | 0 |
Impairment | 0 | 0 |
Dispositions | 0 | 0 |
Net book value | $ 5,821 | $ 5,821 |
Property Plant and Equipment _2
Property Plant and Equipment - Additional Information (Details) - CAD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation, capitalized to biological assets and inventory | $ 4.7 | $ 6.4 | |
Impairment | 2.8 | 12.8 | |
Cannabis Retail Reporting Segment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment | 2.4 | 5.3 | |
Liquor Retail Reporting Segment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment | $ 0.4 | 7.5 | |
Weighted Average Cost of Capital | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Estimated pre-tax discount rate | 12% | ||
Idle Machinery and Equipment | Cannabis Retail Reporting Segment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment | $ 3 | 2.4 | |
Leasehold improvements [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment | 1.7 | ||
Office equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment | $ 1.1 | ||
Merritt Facility | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Proceeds from disposition | 3.5 | ||
Fair value less costs of disposal and impairment | 0.5 | ||
Rocky View Facility | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Proceeds from disposition | $ 3.9 | ||
Olds Facility | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Estimated recoverable amount | $ 18.7 | ||
Olds Facility | Cannabis Operations | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment | $ 15.6 |
Net Investment In Subleases - S
Net Investment In Subleases - Summary of Net Investment in Subleases (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure Of Net Investment In Subleases [Abstract] | ||
Balance, beginning of year | $ 23,319 | $ 26,562 |
Additions | 832 | 1,408 |
Finance income | 857 | 833 |
Rents recovered (payments made directly to landlords) | (4,004) | (4,141) |
Dispositions and remeasurements | 362 | (1,343) |
Balance, end of year | 21,366 | 23,319 |
Current portion | 2,970 | 3,701 |
Long-term | $ 18,396 | $ 19,618 |
Intangible Assets - Summary of
Intangible Assets - Summary of Reconciliation of Changes in Intangible Assets and Goodwill (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure Of Intangible Assets [Line Items] | ||
Beginning Balance | $ 74,885 | |
Ending Balance | 73,149 | $ 74,885 |
Cost | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning Balance | 96,692 | 51,445 |
Acquisition | 1,500 | 45,100 |
Additions | 87 | 197 |
Dispositions | (73) | (50) |
Ending Balance | 98,206 | 96,692 |
Accumulated Amortization | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning Balance | 21,807 | 1,297 |
Amortization | 2,333 | 2,222 |
Impairment | 935 | 18,288 |
Dispositions | (18) | |
Ending Balance | 25,057 | 21,807 |
Brands and Trademarks | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning Balance | 61,083 | |
Ending Balance | 61,453 | 61,083 |
Brands and Trademarks | Cost | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning Balance | 80,400 | 41,445 |
Acquisition | 1,500 | 38,950 |
Additions | 0 | 55 |
Dispositions | 0 | (50) |
Ending Balance | 81,900 | 80,400 |
Brands and Trademarks | Accumulated Amortization | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning Balance | 19,317 | 736 |
Amortization | 195 | 293 |
Impairment | 935 | 18,288 |
Dispositions | 0 | |
Ending Balance | 20,447 | 19,317 |
Franchises Agreements | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning Balance | 8,189 | |
Ending Balance | 6,939 | 8,189 |
Franchises Agreements | Cost | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning Balance | 10,000 | 10,000 |
Acquisition | 0 | 0 |
Additions | 0 | 0 |
Dispositions | 0 | 0 |
Ending Balance | 10,000 | 10,000 |
Franchises Agreements | Accumulated Amortization | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning Balance | 1,811 | 561 |
Amortization | 1,250 | 1,250 |
Impairment | 0 | 0 |
Dispositions | 0 | |
Ending Balance | 3,061 | 1,811 |
Software | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning Balance | 4,863 | |
Ending Balance | 4,007 | 4,863 |
Software | Cost | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning Balance | 5,542 | 0 |
Acquisition | 0 | 5,400 |
Additions | 87 | 142 |
Dispositions | (73) | 0 |
Ending Balance | 5,556 | 5,542 |
Software | Accumulated Amortization | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning Balance | 679 | 0 |
Amortization | 888 | 679 |
Impairment | 0 | 0 |
Dispositions | (18) | |
Ending Balance | 1,549 | 679 |
Retail Licenses | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning Balance | 750 | |
Ending Balance | 750 | 750 |
Retail Licenses | Cost | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning Balance | 750 | 0 |
Acquisition | 0 | 750 |
Additions | 0 | 0 |
Dispositions | 0 | 0 |
Ending Balance | 750 | 750 |
Retail Licenses | Accumulated Amortization | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning Balance | 0 | 0 |
Amortization | 0 | 0 |
Impairment | 0 | 0 |
Dispositions | 0 | |
Ending Balance | $ 0 | $ 0 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - CAD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure Of Intangible Assets [Line Items] | |||
Impairment of intangible assets with indefinite useful lives | $ 0 | ||
Discount rate | 12.50% | 12% | |
Intellectual Property and Rights | |||
Disclosure Of Intangible Assets [Line Items] | |||
Impairment | $ 100,000 | ||
Estimated recoverable amount | $ 0 | ||
Cannabis Retail | |||
Disclosure Of Intangible Assets [Line Items] | |||
Impairment of intangible assets with indefinite useful lives | $ 16,400,000 | ||
Inner Spirit | |||
Disclosure Of Intangible Assets [Line Items] | |||
Estimated useful life of intangible assets | 8 years | ||
Sun 8 Holdings Inc | |||
Disclosure Of Intangible Assets [Line Items] | |||
Estimated useful life of intangible assets | 15 years | ||
Impairment | $ 800,000 | $ 1,900,000 | |
Estimated recoverable amount | $ 1,500,000 | $ 2,500,000 |
Investments - Investments Other
Investments - Investments Other Than Investments Accounted for Using Equity Method (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure Of Investments Other Than Investments Accounted For Using Equity Method [Line Items] | ||
Investments other than investments accounted for using equity method | $ 33,060 | $ 97,254 |
Investments | 3,400 | 6,552 |
Long-term | 29,660 | 90,702 |
Financial assets at amortized cost, category | At cost | ||
Disclosure Of Investments Other Than Investments Accounted For Using Equity Method [Line Items] | ||
Investments other than investments accounted for using equity method | 24,405 | 24,493 |
Financial assets at fair value through profit or loss, category | At fair value | ||
Disclosure Of Investments Other Than Investments Accounted For Using Equity Method [Line Items] | ||
Investments other than investments accounted for using equity method | $ 8,655 | $ 72,761 |
Investments - Additional Inform
Investments - Additional Information (Details) - CAD ($) $ in Millions | 2 Months Ended | 12 Months Ended | ||||||
Aug. 23, 2023 | Feb. 07, 2023 | Dec. 31, 2022 | Aug. 22, 2022 | Feb. 09, 2022 | Feb. 28, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Indiva | ||||||||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||||||
Principal balance for investment in debt instrument | $ 19.8 | |||||||
Maturity date of investments | Feb. 24, 2026 | Feb. 23, 2024 | ||||||
SUPERETTE | Promissory Notes | ||||||||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||||||
Cash outflow for investment In debt instrument | $ 5 | |||||||
Maturity date of investments | Feb. 09, 2025 | |||||||
Rate of interest on investments | 15% | |||||||
SUPERETTE | Promissory Notes | Significant Advances and Adjustments | ||||||||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||||||
Adjusted fair value of debt instrument | $ (1.7) | $ (3.7) | ||||||
SUPERETTE | Amended and Restated Promissory Note | ||||||||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||||||
Cash outflow for investment In debt instrument | $ 1.8 | $ 8.1 | ||||||
SUPERETTE | Amended and Restated Promissory Note | Significant Advances and Adjustments | ||||||||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||||||
Cash outflow for investment In debt instrument | $ 0.9 | |||||||
Term Loan | VALENS | ||||||||
Disclosure Of Transactions Between Related Parties [Line Items] | ||||||||
Cash Out Flow For Non Revolving Loan Issuance | $ 60 | |||||||
Maturity date of investments | Dec. 15, 2023 | |||||||
Rate of interest on investments | 10% |
Equity-Accounted Investees - Su
Equity-Accounted Investees - Summary of Interest (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Investments accounted for using equity method [abstract] | ||
Interest in joint venture | $ 538,331 | $ 519,255 |
Equity-Accounted Investees - Ad
Equity-Accounted Investees - Additional Information (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pathway Rx Inc [Member] | ||
Statements [Line Items] | ||
Proportion of ownership interest in associate | 25% | |
Sun Stream Bancorp Inc. [Member] | ||
Statements [Line Items] | ||
Proportion of ownership interest in joint venture | 50% | |
Capital funded | $ 25,089 | $ 119,137 |
Commitment To funded Capital Towards Joint Venture Monetary Instant Credit Definition | $ 538,000 |
Equity-Accounted Investees - _2
Equity-Accounted Investees - Summary of Interest in Joint Venture (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of joint ventures [line items] | ||
Beging Balance | $ 519,255 | |
Ending Balance | 538,331 | $ 519,255 |
Sun Stream Bancorp Inc. [Member] | ||
Disclosure of joint ventures [line items] | ||
Beging Balance | 519,255 | 412,858 |
Capital contributions | 25,089 | 119,137 |
Share of net (loss) earnings | 6,758 | (43,002) |
Share of other comprehensive income (loss) | (12,771) | 31,923 |
Distributions | (1,661) | |
Ending Balance | $ 538,331 | $ 519,255 |
Equity-Accounted Investees - _3
Equity-Accounted Investees - Summary of Financial Information of SunStream (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of joint ventures [line items] | ||
Current assets (including cash and cash equivalents - 2023: $0.3 million, 2022: $1.5 million) | $ 406,914 | $ 501,483 |
Current liabilities | (103,147) | (89,361) |
Profit (loss) from operations | (176,551) | (372,428) |
Other comprehensive income (loss) | (12,771) | 24,581 |
Sundial Growers Inc [Member] | ||
Disclosure of joint ventures [line items] | ||
Current assets (including cash and cash equivalents - 2023: $0.3 million, 2022: $1.5 million) | 2,675 | 5,437 |
Non-current assets | 532,740 | 509,418 |
Current liabilities | (1,096) | (1,146) |
Net assets and liabilities | 534,319 | 513,709 |
Revenue (loss) | 14,098 | (35,046) |
Profit (loss) from operations | 7,348 | (42,627) |
Other comprehensive income (loss) | (12,771) | 31,923 |
Total comprehensive income (loss) | $ (5,177) | $ (10,619) |
Equity-Accounted Investees - _4
Equity-Accounted Investees - Summary of Financial Information of SunStream (Parenthetical) (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of joint ventures [line items] | |||
Cash and cash equivalents | $ 195,041 | $ 279,586 | $ 558,251 |
Percentage of net assets liabilities | 100% | 100% | |
Sundial Growers Inc [Member] | |||
Disclosure of joint ventures [line items] | |||
Cash and cash equivalents | $ 300 | $ 1,500 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Goodwill (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Abstact] | ||
Goodwill at beginning of period | $ 67,260 | $ 72,496 |
Acquisitions through business combinations | 81,022 | 150,935 |
Impairment | (29,000) | (156,171) |
Goodwill at end of period | $ 119,282 | $ 67,260 |
Goodwill - Schedule of Impairme
Goodwill - Schedule of Impairment Testing Goodwill (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure Of Business Combinations [Line Items] | ||
Goodwill allocated for impairment testing | $ 119,282 | $ 67,260 |
Liquor Retail | ||
Disclosure Of Business Combinations [Line Items] | ||
Goodwill allocated for impairment testing | 24,338 | 24,338 |
Cannabis Retail | ||
Disclosure Of Business Combinations [Line Items] | ||
Goodwill allocated for impairment testing | 38,624 | 38,624 |
Cannabis Retail Franchise Group | ||
Disclosure Of Business Combinations [Line Items] | ||
Goodwill allocated for impairment testing | 4,298 | $ 4,298 |
Cannabis Operations - Valens | ||
Disclosure Of Business Combinations [Line Items] | ||
Goodwill allocated for impairment testing | $ 52,022 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of detailed information about business combination [line items] | ||
Discount rate | 12.50% | 12% |
Estimated cash flow term | 5 years | 5 years |
Impairment loss | $ 54,967 | $ 196,033 |
Cannabis Retail CGU | ||
Disclosure of detailed information about business combination [line items] | ||
Intangible assets with indefinite useful life | 2,700 | 2,700 |
Impairment loss | 88,000 | |
Estimated recoverable amount | 84,800 | |
Cannabis Franchise CGU | ||
Disclosure of detailed information about business combination [line items] | ||
Intangible assets with indefinite useful life | 18,300 | 18,300 |
Liquor Retail CGU | ||
Disclosure of detailed information about business combination [line items] | ||
Intangible assets with indefinite useful life | 38,300 | $ 43,100 |
Cannabis Operations CGU | ||
Disclosure of detailed information about business combination [line items] | ||
Intangible assets with indefinite useful life | 1,500 | |
Estimated recoverable amount | 124,100 | |
Cannabis Operations - Valens CGU | ||
Disclosure of detailed information about business combination [line items] | ||
Impairment loss | $ 29,000 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities - Summary of Accounts Payable and Accrued Liabilities (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Trade payables | $ 22,035 | $ 9,774 |
Accrued and other liabilities | 46,175 | 38,379 |
Accounts payable and accrued liabilities | $ 68,210 | $ 48,153 |
Derivative Warrants - Summary o
Derivative Warrants - Summary of Derivative Warrants (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure Of Detailed Information About Derivative Warrant Liability [Line Items] | ||
Balance, beginning of year | $ 11,002 | $ 21,700 |
Change in fair value recognized in profit or loss | (6,602) | (10,783) |
Acquisition | 85 | |
Balance, end of year | $ 4,400 | $ 11,002 |
Derivative Warrants - December
Derivative Warrants - December 2018 Performance Warrants - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 Warrant | |
Disclosure Of Detailed Information About Derivative Warrant Liability [Line Items] | |
Warrants outstanding | 9,933,333 |
December 2018 Performance Warrants | |
Disclosure Of Detailed Information About Derivative Warrant Liability [Line Items] | |
Warrants outstanding | 118,067 |
Warrants outstanding expiration date | Dec. 18, 2023 |
Derivative Warrants - Summary_2
Derivative Warrants - Summary of Outstanding Derivative Warrants (Details) | 12 Months Ended | |
Dec. 31, 2023 Warrant $ / shares | ||
Disclosure Of Detailed Information About Derivative Warrant Liability [Line Items] | ||
Warrants outstanding | 9,933,333 | |
Weighted average contractual life | 7 months 6 days | |
2020 Series A Warrants | ||
Disclosure Of Detailed Information About Derivative Warrant Liability [Line Items] | ||
Exercise price | $ / shares | $ 1.77 | [1] |
Warrants outstanding | 50,000 | [1] |
Weighted average contractual life | 1 year 7 months 6 days | [1] |
Unsecured Convertible Notes Warrants | ||
Disclosure Of Detailed Information About Derivative Warrant Liability [Line Items] | ||
Exercise price | $ / shares | $ 1.77 | [1] |
Warrants outstanding | 50,000 | [1] |
Weighted average contractual life | 0 years | [1] |
New Warrants | ||
Disclosure Of Detailed Information About Derivative Warrant Liability [Line Items] | ||
Exercise price | $ / shares | $ 2.29 | [2] |
Warrants outstanding | 9,833,333 | [2] |
Weighted average contractual life | 7 months 6 days | [2] |
[1] The conversion or exercise price, as applicable, is subject to full ratchet antidilution protection upon any subsequent transaction at a price lower than the price then in effect and standard adjustments in the event of any share split, share dividend, share combination, recapitalization or other similar transaction. If the Company issues, sells or enters into any agreement to issue or sell, any variable rate securities, the investors have the additional right to substitute the variable price (or formula) of such securities for the conversion or exercise price, as applicable. The exercise price of the New Warrants was adjusted from US$ 15.00 to US$ 2.29 based on the July 26, 2022 Share Consolidation (as defined below) representing a share combination event (note 26(a) ). |
Derivative Warrants - Summary_3
Derivative Warrants - Summary of Outstanding Derivative Warrants (Parenthetical) (Details) - $ / shares | 12 Months Ended | |
Jul. 26, 2022 | Dec. 31, 2023 | |
New Warrants | ||
Disclosure Of Detailed Information About Derivative Warrant Liability [Line Items] | ||
Weighted average exercise price of warrant | $ 15 | $ 2.29 |
Lease Liabilities - Summary of
Lease Liabilities - Summary of Lease Liabilities (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure Of Lease Obligations [Line Items] | ||
Acquisitions (note 3(a), note3(b)) | $ 84,555 | $ 345,351 |
Lease payments | (41,013) | (27,693) |
Current portion | 30,537 | 30,206 |
Long-term | 136,492 | 139,625 |
IFRS 16 | ||
Disclosure Of Lease Obligations [Line Items] | ||
Balance, beginning of year | 169,831 | 33,470 |
Acquisitions (note 3(a), note3(b)) | 4,336 | 142,106 |
Additions | 4,362 | 7,497 |
Lease payments | (45,017) | (31,834) |
Renewals, remeasurements and dispositions | 25,505 | 10,890 |
Tenant inducement allowances received | 91 | 1,799 |
Accretion expense | 7,921 | 5,903 |
Balance, end of year | 167,029 | 169,831 |
Current portion | 30,537 | 30,206 |
Long-term | $ 136,492 | $ 139,625 |
Lease Liabilities - Additional
Lease Liabilities - Additional Information (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IFRS 16 | ||
Disclosure Of Lease Obligations [Line Items] | ||
Renewals, remeasurements and dispositions | $ 25,505 | $ 10,890 |
Lease Liabilities - Summary o_2
Lease Liabilities - Summary of Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2023 CAD ($) |
Disclosure Of Maturity Analysis Of Finance Lease Payments Receivable [Line Items] | |
Minimum lease payments | $ 198,494 |
Less Than One Year | |
Disclosure Of Maturity Analysis Of Finance Lease Payments Receivable [Line Items] | |
Minimum lease payments | 41,743 |
One to Three Years | |
Disclosure Of Maturity Analysis Of Finance Lease Payments Receivable [Line Items] | |
Minimum lease payments | 69,660 |
Three to Five Years | |
Disclosure Of Maturity Analysis Of Finance Lease Payments Receivable [Line Items] | |
Minimum lease payments | 51,372 |
Thereafter | |
Disclosure Of Maturity Analysis Of Finance Lease Payments Receivable [Line Items] | |
Minimum lease payments | $ 35,719 |
Other Liabilities - Schedule Of
Other Liabilities - Schedule Of Other Liabilities (Detail) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure Of Other Liabilities [Abstract] | ||
Financial guarantee liability | $ 268 | $ 407 |
Deferred share units liability | 3,917 | 2,302 |
Total | $ 4,185 | $ 2,709 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Recovery) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Major components of tax expense (income) [abstract] | ||
Loss before income tax | $ (172,016) | $ (379,770) |
Statutory income tax rates | 23% | 23% |
Expected income tax recovery | $ (39,564) | $ (87,347) |
Non-deductible share-based compensation | 4,954 | 2,508 |
Revaluation of the fair value of warrant liabilities | 0 | (2,461) |
Non-controlling interest | (1,118) | 8,167 |
Non-deductible portion of capital losses | 1,107 | 7,458 |
Other non-deductible expenses | 2,937 | 5,409 |
Goodwill impairment | 0 | 35,919 |
Deferred tax benefits not recognized | 35,322 | 23,005 |
Income tax (recovery) expense | $ 0 | $ (7,342) |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets (Liabilities) (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Assets And Liabilities [Line Items] | |||
Net deferred tax asset (liability) | $ 0 | $ 0 | $ 0 |
Property, Plant and Equipment | |||
Deferred Tax Assets And Liabilities [Line Items] | |||
Net deferred tax asset (liability) | (4,148) | 0 | |
Inventory | |||
Deferred Tax Assets And Liabilities [Line Items] | |||
Net deferred tax asset (liability) | 29,835 | 23,329 | |
Biological assets | |||
Deferred Tax Assets And Liabilities [Line Items] | |||
Net deferred tax asset (liability) | (8,093) | (9,451) | |
Net Investment in Subleases | |||
Deferred Tax Assets And Liabilities [Line Items] | |||
Net deferred tax asset (liability) | (4,914) | (5,363) | |
Intangible Assets | |||
Deferred Tax Assets And Liabilities [Line Items] | |||
Net deferred tax asset (liability) | (16,230) | (16,632) | |
Lease liabilities | |||
Deferred Tax Assets And Liabilities [Line Items] | |||
Net deferred tax asset (liability) | 465 | (5,488) | |
Marketable Securities | |||
Deferred Tax Assets And Liabilities [Line Items] | |||
Net deferred tax asset (liability) | 3,159 | 14,981 | |
Fair Value of Derivatives | |||
Deferred Tax Assets And Liabilities [Line Items] | |||
Net deferred tax asset (liability) | (83) | 0 | |
Equity Accounted Investee | |||
Deferred Tax Assets And Liabilities [Line Items] | |||
Net deferred tax asset (liability) | $ 9 | $ (1,376) |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Deductible Temporary Differences (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | ||
Property, plant and equipment | $ 0 | $ 7,413 |
Intangible assets | 183 | 183 |
Share issue costs | 24,691 | 28,926 |
Investments | 18,748 | 18,239 |
Lease liabilities | 165,252 | 193,691 |
Financial obligations and other | 3,917 | 2,300 |
Non-capital losses & scientific research and experimental development | 986,422 | 490,326 |
Unrecognized deductible temporary differences | $ 1,199,213 | $ 741,078 |
Income Taxes - Summary of Movem
Income Taxes - Summary of Movement in Deferred Income Tax Liability (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred Tax Assets And Liabilities [Line Items] | ||
Balance, beginning of year | $ 0 | $ 0 |
Recognized in profit and loss | 0 | (7,342) |
Recognized in other comprehensive income | 0 | 7,342 |
Balance, end of year | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Major components of tax expense (income) [abstract] | ||
Non-capital losses available for future periods | $ 985 | $ 490.3 |
Share Capital and Warrants - Su
Share Capital and Warrants - Summary of Issued and Outstanding (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Jul. 25, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure Of Classes Of Share Capital [Line Items] | |||
Share issuances, shares | 10,000,000 | 1,500,000 | 13,300,000 |
Share repurchases, shares | 500,000 | 4,300,000 | |
Beginning balance | $ 1,327,655 | $ 1,329,533 | |
Share repurchases | (1,536) | (13,390) | |
Business acquisitions | 84,555 | 345,351 | |
Ending balance | $ 1,229,340 | $ 1,327,655 | |
Share Capital | |||
Disclosure Of Classes Of Share Capital [Line Items] | |||
Balance, beginning of year, shares | 235,194,236 | 206,040,836 | |
Share issuances, shares | 931,740 | 370,179 | |
Share repurchases, shares | (546,700) | (4,252,489) | |
Business acquisitions, shares | 27,605,782 | 32,060,135 | |
Shares acquired and cancelled, shares | (2,261,778) | 0 | |
Employee awards exercised, shares | 1,852,573 | 975,575 | |
Balance, end of year, shares | 262,775,853 | 235,194,236 | |
Beginning balance | $ 2,292,810 | $ 2,035,704 | |
Share issuances, carrying amount | 1,900 | 2,870 | |
Share repurchases | (5,344) | (41,617) | |
Business acquisitions | 83,953 | 287,129 | |
Shares acquired and cancelled | (6,879) | 0 | |
Employee awards exercised | 9,510 | 8,724 | |
Ending balance | $ 2,375,950 | $ 2,292,810 |
Share Capital and Warrants - _2
Share Capital and Warrants - Summary of Issued and Outstanding (Parentheticals) (Details) | 12 Months Ended |
Dec. 31, 2021 shares | |
Restricted Share Units | |
Disclosure Of Classes Of Share Capital [Line Items] | |
Number of shares vested | 50,000 |
Share Capital and Warrants - Ad
Share Capital and Warrants - Additional Information (Details) $ / shares in Units, $ / shares in Units, $ in Thousands, $ in Millions | 12 Months Ended | ||||||
Jul. 25, 2022 shares | Dec. 31, 2023 CAD ($) $ / shares shares | Dec. 31, 2023 CAD ($) $ / shares shares | Dec. 31, 2022 CAD ($) $ / shares shares | Dec. 31, 2022 CAD ($) $ / shares shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) | |
Share Capital And Warrants [Line Items] | |||||||
Number of shares issued | 10,000,000 | 1,500,000 | 1,500,000 | 13,300,000 | 13,300,000 | ||
Number of shares issued upon conversion | 1 | ||||||
Share repurchases, shares | 500,000 | 500,000 | 4,300,000 | 4,300,000 | |||
Shares repurchased weighted average price per common share | (per share) | $ 2.78 | $ 2.04 | $ 3.12 | $ 2.33 | |||
Accumulated deficit | $ (1,260,851) | $ (1,260,851) | $ (1,091,999) | $ (1,091,999) | $ 3.8 | $ 28.3 | |
Valens Arrangement Agreement [Member] | VALENS | |||||||
Share Capital And Warrants [Line Items] | |||||||
Number of shares issued | 6,600,000 | 6,600,000 | |||||
Share repurchases, shares | 2,200,000 | 2,200,000 | |||||
Number of ordinary shares owned | 6,500,000 | 6,500,000 | 6,500,000 | ||||
Number of ordinary shares received | 2,200,000 | 2,200,000 | |||||
Major Ordinary Share Transactions | Valens Arrangement Agreement [Member] | VALENS | |||||||
Share Capital And Warrants [Line Items] | |||||||
Common stock ,conversion price | 0.3334 | 0.3334 |
Share Capital and Warrants - _3
Share Capital and Warrants - Summary of Common Share Purchase Warrants (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure Of Common Share Purchase Warrants [Line Items] | ||
Beginning balance | $ 1,327,655 | $ 1,329,533 |
Ending balance | $ 1,229,340 | $ 1,327,655 |
Warrants | ||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||
Beginning balance, Number of Warrants | 308,612 | 356,612 |
Warrants expired, Number of Warrants | (48,000) | |
Ending balance, Number of Warrants | 308,612 | 308,612 |
Beginning balance | $ 2,260 | $ 8,092 |
Warrants expired, Carrying Amount | (5,832) | |
Ending balance | $ 2,260 | $ 2,260 |
Share Capital And Warrants - _4
Share Capital And Warrants - Summary of Outstanding Warrants (Details) - Warrants | 12 Months Ended | |
Dec. 31, 2023 Warrant $ / shares | ||
Disclosure Of Exercise Price Number And Weighted Average Contractual Life Of Outstanding Share Options [Line Items] | ||
Warrants outstanding and exercisable, Weighted average exercise price | $ / shares | $ 12.13 | |
Warrants outstanding and exercisable, Number of warrants | Warrant | 308,612 | |
Warrants outstanding and exercisable, Weighted average contractual life (years) | 1 year 6 months | |
Sun 8 Holdings Inc | ||
Disclosure Of Exercise Price Number And Weighted Average Contractual Life Of Outstanding Share Options [Line Items] | ||
Warrants outstanding and exercisable, Weighted average exercise price | $ / shares | $ 9.4 | |
Warrants outstanding and exercisable, Number of warrants | Warrant | 64,000 | |
Warrants outstanding and exercisable, Weighted average contractual life (years) | 2 years | |
Financial Services | ||
Disclosure Of Exercise Price Number And Weighted Average Contractual Life Of Outstanding Share Options [Line Items] | ||
Warrants outstanding and exercisable, Weighted average exercise price | $ / shares | $ 45.98 | |
Warrants outstanding and exercisable, Number of warrants | Warrant | 54,400 | |
Warrants outstanding and exercisable, Weighted average contractual life (years) | 5 years 7 months 6 days | |
Acquired From Inner Spirit [Member] | ||
Disclosure Of Exercise Price Number And Weighted Average Contractual Life Of Outstanding Share Options [Line Items] | ||
Warrants outstanding and exercisable, Weighted average exercise price | $ / shares | $ 3.37 | [1] |
Warrants outstanding and exercisable, Number of warrants | Warrant | 190,212 | [1] |
Warrants outstanding and exercisable, Weighted average contractual life (years) | 2 months 12 days | [1] |
[1] Inner Spirit warrants are exchangeable for 0.00835 SNDL common shares in accordance with the Inner Spirit transaction consideration and have been presented based on the number of SNDL common shares that are issuable. |
Share Capital And Warrants - _5
Share Capital And Warrants - Summary of Outstanding Warrants (Parentheticals) (Details) | 12 Months Ended |
Dec. 31, 2023 shares | |
Inner Spirit | |
Statements [Line Items] | |
Warrants are Exchangeable For Number Of Common Shares Accordance With The Transaction Consideration | 0.00835 |
Share-based Compensation - Comp
Share-based Compensation - Components of Share-based Compensation Expense (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Share-based compensation | $ 15,400 | $ 9,671 | |
Simple Warrants | Equity Settled Expense | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Share-based compensation | (332) | 1,299 | |
Stock Options | Equity Settled Expense | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Share-based compensation | (1) | 78 | |
Restricted Share Units | Equity Settled Expense | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Share-based compensation | [1] | 13,350 | 9,423 |
Deferred Share Units | Cash Settled Expense | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Share-based compensation | [1],[2] | $ 2,383 | $ (1,129) |
[1] For the year ended December 31, 2023, the Company recognized share-based compensation expense under Nova’s RSU plan of $ 34 (2022 — recovery of $ 107 ) and share-based compensation expense under Nova’s DSU plan of $ 768 (2022 — $ 404 ) . Cash-settled DSUs are accounted for as a liability and are measured at fair value based on the market value of the Company’s common shares at each reporting period. Fluctuations in the fair value are recognized during the period in which they occur. |
Share-based Compensation - Co_2
Share-based Compensation - Components of Share-based Compensation Expense (Parenthetical) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Share-based compensation | $ 15,400 | $ 9,671 |
NOVA RSU PLAN | Equity Settled Expense | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Share-based compensation recovery | 34 | 107 |
NOVA DSU PLAN | Cash Settled Expense | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Share-based compensation | $ 768 | $ 404 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 CAD ($) shares | Dec. 31, 2022 CAD ($) shares | Dec. 31, 2021 shares | |
Cash Settled Plan | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Fair value of cash settled deferred share units | $ | $ 3.9 | $ 2.3 | |
Simple and Performance Warrants | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Vesting period | 3 years | ||
Simple Warrants | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Maturity period | 5 years | ||
Performance Warrants | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Maturity period | 5 years | ||
Stock Options | Equity Settled Plan | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Vesting period | 3 years | ||
Maturity period | 10 years | ||
Deferred Share Units | Cash Settled Plan | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Granted | 689,950 | 1,216,076 | |
Exercised | 1,500,000 | 800,000 | |
Vesting term | DSUs are granted to directors and generally vest in equal instalments over one year | ||
Vesting period | 1 year | ||
Exercisable | 0 | 0 | |
Restricted Share Units | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Exercised | 50,000 | ||
Restricted Share Units | Equity Settled Plan | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Granted | 10,259,228 | 1,728,557 | |
Exercised | 1,852,573 | 925,575 |
Share-based Compensation - Summ
Share-based Compensation - Summary of Changes in Simple and Performance Warrants (Details) | 12 Months Ended | |
Dec. 31, 2023 shares $ / shares | Dec. 31, 2022 shares $ / shares | |
Simple Warrants | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Beginning balance | shares | 165,820 | 259,420 |
Forfeited | shares | (74,640) | (82,400) |
Expired | shares | (24,480) | (11,200) |
Ending balance | shares | 66,700 | 165,820 |
Weighted average exercise price, beginning balance | $ / shares | $ 46.91 | $ 48.6 |
Weighted average exercise price, Forfeited | $ / shares | 63.86 | 57.77 |
Weighted average exercise price, Expired | $ / shares | 14.68 | 6.25 |
Weighted average exercise price, ending balance | $ / shares | $ 39.77 | $ 46.91 |
Performance Warrants | ||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Beginning balance | shares | 123,200 | 138,720 |
Forfeited | shares | (52,800) | (15,520) |
Expired | shares | (16,000) | |
Ending balance | shares | 54,400 | 123,200 |
Weighted average exercise price, beginning balance | $ / shares | $ 42.26 | $ 41.77 |
Weighted average exercise price, Forfeited | $ / shares | 54.55 | 37.86 |
Weighted average exercise price, Expired | $ / shares | 14.07 | 0 |
Weighted average exercise price, ending balance | $ / shares | $ 38.62 | $ 42.26 |
Share-based Compensation - Su_2
Share-based Compensation - Summarizes Outstanding Simple and Performance Warrants (Details) | 12 Months Ended | ||
Dec. 31, 2023 shares $ / shares | Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 shares $ / shares | |
Simple Warrants | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Number of warrants, Warrants outstanding | shares | 66,700 | 165,820 | 259,420 |
Weighted average exercise price, Warrants outstanding | $ / shares | $ 39.77 | $ 46.91 | $ 48.6 |
Weighted average contractual life, Warrants outstanding (years) | 1 year 9 months 14 days | ||
Number of warrants, Warrants exercisable | shares | 65,420 | ||
Weighted average exercise price, Warrants exercisable | $ / shares | $ 36.26 | ||
Weighted average contractual life, Warrants exercisable (years) | 1 year 8 months 19 days | ||
Performance Warrants | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Number of warrants, Warrants outstanding | shares | 54,400 | 123,200 | 138,720 |
Weighted average exercise price, Warrants outstanding | $ / shares | $ 38.62 | $ 42.26 | $ 41.77 |
Number of warrants, Warrants exercisable | shares | 43,734 | ||
Weighted average exercise price, Warrants exercisable | $ / shares | $ 22.9 | ||
Weighted average contractual life, Warrants exercisable (years) | 1 year 3 months 3 days | ||
$6.25 - $9.38 | Simple Warrants | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Number of warrants, Warrants outstanding | shares | 36,300 | ||
Weighted average exercise price, Warrants outstanding | $ / shares | $ 7.63 | ||
Weighted average contractual life, Warrants outstanding (years) | 10 months 9 days | ||
Number of warrants, Warrants exercisable | shares | 36,300 | ||
Weighted average exercise price, Warrants exercisable | $ / shares | $ 7.63 | ||
Weighted average contractual life, Warrants exercisable (years) | 10 months 9 days | ||
$6.25 - $9.38 | Performance Warrants | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Number of warrants, Warrants outstanding | shares | 19,200 | ||
Weighted average exercise price, Warrants outstanding | $ / shares | $ 6.25 | ||
Weighted average contractual life, Warrants outstanding (years) | 1 year 2 months 8 days | ||
Number of warrants, Warrants exercisable | shares | 19,200 | ||
Weighted average exercise price, Warrants exercisable | $ / shares | $ 6.25 | ||
Weighted average contractual life, Warrants exercisable (years) | 1 year 2 months 8 days | ||
$29.69 - $45.31 | Simple Warrants | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Number of warrants, Warrants outstanding | shares | 7,200 | ||
Weighted average exercise price, Warrants outstanding | $ / shares | $ 34.9 | ||
Weighted average contractual life, Warrants outstanding (years) | 1 year 9 months 25 days | ||
Number of warrants, Warrants exercisable | shares | 7,200 | ||
Weighted average exercise price, Warrants exercisable | $ / shares | $ 34.9 | ||
Weighted average contractual life, Warrants exercisable (years) | 1 year 9 months 25 days | ||
$29.69 - $45.31 | Performance Warrants | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Number of warrants, Warrants outstanding | shares | 23,200 | ||
Weighted average exercise price, Warrants outstanding | $ / shares | $ 32.6 | ||
Weighted average contractual life, Warrants outstanding (years) | 1 year 3 months 7 days | ||
Number of warrants, Warrants exercisable | shares | 23,200 | ||
Weighted average exercise price, Warrants exercisable | $ / shares | $ 32.6 | ||
Weighted average contractual life, Warrants exercisable (years) | 1 year 3 months 7 days | ||
$62.50 - $93.75 | Simple Warrants | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Number of warrants, Warrants outstanding | shares | 17,280 | ||
Weighted average exercise price, Warrants outstanding | $ / shares | $ 64.81 | ||
Weighted average contractual life, Warrants outstanding (years) | 2 years 11 months 23 days | ||
Number of warrants, Warrants exercisable | shares | 17,280 | ||
Weighted average exercise price, Warrants exercisable | $ / shares | $ 64.81 | ||
Weighted average contractual life, Warrants exercisable (years) | 2 years 11 months 23 days | ||
$62.50 - $93.75 | Performance Warrants | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Number of warrants, Warrants outstanding | shares | 9,334 | ||
Weighted average exercise price, Warrants outstanding | $ / shares | $ 77.68 | ||
Number of warrants, Warrants exercisable | shares | 1,334 | ||
Weighted average exercise price, Warrants exercisable | $ / shares | $ 93.75 | ||
Weighted average contractual life, Warrants exercisable (years) | 2 years 1 month 28 days | ||
$125.00 - $312.50 | Simple Warrants | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Number of warrants, Warrants outstanding | shares | 5,920 | ||
Weighted average exercise price, Warrants outstanding | $ / shares | $ 169.62 | ||
Weighted average contractual life, Warrants outstanding (years) | 3 years 11 months 1 day | ||
Number of warrants, Warrants exercisable | shares | 4,640 | ||
Weighted average exercise price, Warrants exercisable | $ / shares | $ 156.07 | ||
Weighted average contractual life, Warrants exercisable (years) | 3 years 7 months 9 days | ||
$125.00 - $218.75 | Performance Warrants | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Number of warrants, Warrants outstanding | shares | 2,666 | ||
Weighted average exercise price, Warrants outstanding | $ / shares | $ 187.5 |
Share-based Compensation - Su_3
Share-based Compensation - Summary of Changes in Stock Options (Details) - Equity Settled Plan - Stock Options | 12 Months Ended | |
Dec. 31, 2023 shares $ / shares | Dec. 31, 2022 shares $ / shares | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Beginning Balance | shares | 44,360 | 44,460 |
Acquired (note 5(c)) | shares | 1,317,837 | |
Forfeited | shares | (424,027) | |
Expired | shares | (84,465) | (100) |
Ending Balance | shares | 853,705 | 44,360 |
Weighted average exercise price, beginning balance | $ / shares | $ 13.24 | $ 13.28 |
Weighted average exercise price, Acquired (note 5(c)) | $ / shares | 17.63 | |
Weighted average exercise price, Forfeited | $ / shares | 17.21 | |
Weighted average exercise price, Expired | $ / shares | 14.44 | 31.5 |
Weighted average exercise price, ending balance | $ / shares | $ 17.92 | $ 13.24 |
Share-based Compensation - Su_4
Share-based Compensation - Summary of Outstanding Stock Options (Details) - Equity Settled Plan - Stock Options - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Warrants outstanding and exercisable, Number of warrants | 853,705 | 44,360 | 44,460 |
Warrants outstanding and exercisable, Weighted average contractual life (years) | 2 years 5 months 15 days | ||
Number of options, Stock options exercisable | 853,405 | ||
Weighted average contractual life, Stock options exercisable (years) | 2 years 5 months 12 days | ||
$11.50 | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Warrants outstanding and exercisable, Number of warrants | 10,000 | ||
Warrants outstanding and exercisable, Weighted average contractual life (years) | 6 years 4 months 28 days | ||
Number of options, Stock options exercisable | 10,000 | ||
Weighted average contractual life, Stock options exercisable (years) | 6 years 4 months 28 days | ||
$11.90 | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Warrants outstanding and exercisable, Number of warrants | 8,160 | ||
Warrants outstanding and exercisable, Weighted average contractual life (years) | 6 years 5 months 26 days | ||
Number of options, Stock options exercisable | 8,160 | ||
Weighted average contractual life, Stock options exercisable (years) | 6 years 5 months 26 days | ||
$31.50 | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Warrants outstanding and exercisable, Number of warrants | 3,000 | ||
Warrants outstanding and exercisable, Weighted average contractual life (years) | 4 years 8 months 23 days | ||
Number of options, Stock options exercisable | 2,700 | ||
Weighted average contractual life, Stock options exercisable (years) | 4 years 7 months 24 days | ||
$11.79 - $38.88 (Legacy Valens) | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Warrants outstanding and exercisable, Number of warrants | 832,545 | ||
Warrants outstanding and exercisable, Weighted average contractual life (years) | 2 years 4 months 9 days | ||
Number of options, Stock options exercisable | 832,545 | ||
Weighted average contractual life, Stock options exercisable (years) | 2 years 4 months 9 days |
Share-based Compensation - Su_5
Share-based Compensation - Summary of Changes in Restricted Share Units (Details) - Restricted Share Units - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Exercised | (50,000) | ||
Equity Settled Plan | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Beginning balance | 1,381,330 | 753,593 | |
Granted | 10,259,228 | 1,728,557 | |
Forfeited | (1,158,279) | (175,245) | |
Exercised | (1,852,573) | (925,575) | |
Ending balance | 8,629,706 | 1,381,330 | 753,593 |
Share-based Compensation - Su_6
Share-based Compensation - Summary of Changes in Deferred Share Units (Details) - Cash Settled Plan - Deferred Share Units - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | ||
Beginning balance | 1,708,383 | 551,250 |
Granted | 689,950 | 1,216,076 |
Exercised | (58,943) | |
Ending balance | 2,398,333 | 1,708,383 |
Gross Revenue - Disaggregation
Gross Revenue - Disaggregation of Revenue from Contracts with Customers (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Gross revenue | $ 957,725 | $ 729,694 |
Liquor retail revenue | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Gross revenue | 578,895 | 462,180 |
Cannabis retail revenue | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Gross revenue | 289,980 | 205,610 |
Cannabis retail revenue | Retail | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Gross revenue | 270,454 | 192,710 |
Cannabis retail revenue | Franchise | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Gross revenue | 7,100 | 8,337 |
Cannabis retail revenue | Other | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Gross revenue | 12,426 | 4,563 |
Cannabis operations revenue | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Gross revenue | 88,850 | 61,904 |
Cannabis operations revenue | Provincial Boards | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Gross revenue | 71,894 | 58,728 |
Cannabis operations revenue | Medical | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Gross revenue | 24 | 9 |
Cannabis operations revenue | Wholesale | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Gross revenue | 15,682 | 3,167 |
Cannabis operations revenue | Analytical Testing | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Gross revenue | $ 1,250 | $ 0 |
Gross Revenue - Summary of Rece
Gross Revenue - Summary of Receivables from Contracts with Customers (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue [abstract] | ||
Receivables, included in 'trade receivables' (note 10) | $ 23,422 | $ 17,558 |
Gross Revenue - Additional Info
Gross Revenue - Additional Information (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue [abstract] | ||
Maximum period to settle receivables from contracts with customers | 30 days | |
Impairment loss (reversal) on receivables from contracts with customers | $ 10.4 | $ 0.6 |
Investment Revenue (Loss) - Sum
Investment Revenue (Loss) - Summary of Interest and Fee Revenue (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Investment Revenue (Loss) [Abstract] | ||
Interest revenue from investments at amortized cost | $ 3,781 | $ 3,660 |
Interest and fee revenue from investments at FVTPL | 1,374 | 6,036 |
Interest revenue from cash | 9,362 | 7,043 |
Interest and fee revenue | $ 14,517 | $ 16,739 |
Investment Revenue (Loss) - S_2
Investment Revenue (Loss) - Summary of Investment Loss (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Investment Loss [Abstract] | ||
Investment loss | $ (9,258) | $ (65,164) |
Other Operating Expenses - Summ
Other Operating Expenses - Summary of General and Administrative Expense (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Expenses by nature [abstract] | ||
Salaries and wages | $ 114,684 | $ 80,134 |
Consulting fees | 4,320 | 1,934 |
Office and general | 51,191 | 37,061 |
Professional fees | 14,620 | 11,563 |
Merchant Processing Fees | 6,332 | 4,748 |
Director fees | 550 | 472 |
Other | 8,028 | 4,256 |
General and administrative expense | $ 199,725 | $ 140,168 |
Other Operating Expenses - Su_2
Other Operating Expenses - Summary of Sales and Marketing Expense (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Expenses by nature [abstract] | ||
Marketing | $ 13,599 | $ 7,308 |
Events | 114 | 102 |
Media | 1,332 | 1,007 |
Sales and marketing expense | $ 15,045 | $ 8,417 |
Other Operating Expenses - Addi
Other Operating Expenses - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 CAD ($) | |
Expenses by nature [abstract] | |
Restructuring costs | $ 19.6 |
Finance Costs - Summary of Fina
Finance Costs - Summary of Finance Costs (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash finance expense | ||
Other finance costs | $ 81 | $ 178 |
Interest expense | 81 | 178 |
Non-cash finance expense (income) | ||
Change in fair value of investment at FVTPL | 3,317 | 36,087 |
Accretion on lease liabilities | 7,921 | 5,903 |
Financial guarantee liability recovery | (139) | (59) |
Other | 1,039 | 89 |
Non-cash finance expense (income) | 12,138 | 42,020 |
Interest income | (857) | (884) |
Finance costs | $ 11,362 | $ 41,314 |
Supplemental Cash Flow Disclo_3
Supplemental Cash Flow Disclosures - Summary of Changes in Non-cash Working Capital (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash provided by (used in): | ||
Accounts receivable | $ 15,096 | $ (5,815) |
Biological assets | (4,888) | 533 |
Inventory | (17,411) | 4,243 |
Prepaid expenses and deposits | (3,515) | 5,782 |
Assets held for sale | 2,081 | |
Investments | 692 | 918 |
Right of use assets | (3,450) | (17,510) |
Property, plant and equipment | (97) | 38 |
Accounts payable and accrued liabilities | (20,809) | (27,864) |
Lease liabilities | 3,496 | 19,296 |
Changes in non cash working capital | (28,805) | (20,379) |
Changes in non-cash working capital relating to: | ||
Operating | (32,875) | (22,073) |
Investing | 4,028 | 74 |
Financing | 42 | 1,620 |
Changes in non cash working capital | $ (28,805) | $ (20,379) |
Loss Per Share - Summary of Los
Loss Per Share - Summary of Loss Per Share (Details) - CAD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
May 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Weighted average shares outstanding (000s) | ||||
Basic and dilutive | [1] | 259,371 | 229,871 | |
Continuing operations | ||||
Net loss attributable to owners of the Company | $ (172,660) | $ (335,114) | ||
Per share - basic | $ (0.65) | $ (1.46) | ||
Per share - diluted | $ (0.65) | $ (1.46) | ||
Discontinued operations | ||||
Net loss attributable to owners of the Company | $ 2,300 | $ (4,535) | ||
Per share - basic | $ (0.02) | |||
Per share - diluted | $ (0.02) | |||
Net loss attributable to owners of the Company | $ (168,125) | $ (335,114) | ||
Per share - basic | $ (0.67) | $ (1.46) | ||
Per share - diluted | $ (0.67) | $ (1.46) | ||
[1] For the year ended December 31, 2023, there were 0.3 million equity classified warrants, 9.9 million derivative warrants, 0.1 million simple warrants, 0.1 million performance warrants, 0.9 million stock options and 8.6 million RSUs that were excluded from the calculation as the impact was anti-dilutive (year ended December 31, 2022 – 0.3 million equity classified warrants, 10.1 million derivative warrants, 0.2 million simple warrants, 0.1 million performance warrants, 0.04 million stock options and 1.4 million RSUs). |
Loss Per Share - Summary of L_2
Loss Per Share - Summary of Loss Per Share (Parenthetical) (Details) - CAD ($) $ in Thousands, shares in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings per share [abstract] | ||
Equity Classified warrants | 0.3 | 0.3 |
Derivative warrants | 9.9 | 10.1 |
Simple warrants | 0.1 | 0.2 |
Performance warrants | 0.1 | 0.1 |
Stock options | $ 900 | $ 40 |
RSUs Exercisable | $ 8,600 | $ 1,400 |
Financial Instruments - Summary
Financial Instruments - Summary of Fair Value Measurements of Long-term Debt, Derivative Warrant Liabilities and Contingent Consideration (Details) - Recurring fair value measurement [member] - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Marketable Securities | |||
Disclosure Of Fair Value Measurement Of Assets [Line Items] | |||
Financial assets | $ 225 | $ 21,926 | |
Investments at FVTPL | |||
Disclosure Of Fair Value Measurement Of Assets [Line Items] | |||
Financial assets | 8,655 | 72,761 | |
Derivative Warrants | |||
Disclosure Of Fair Value Measurement Of Assets [Line Items] | |||
Financial liabilities | [1] | 4,400 | 11,002 |
Level 1 | Marketable Securities | |||
Disclosure Of Fair Value Measurement Of Assets [Line Items] | |||
Financial assets | 225 | 21,926 | |
Level 1 | Investments at FVTPL | |||
Disclosure Of Fair Value Measurement Of Assets [Line Items] | |||
Financial assets | 0 | 0 | |
Level 1 | Derivative Warrants | |||
Disclosure Of Fair Value Measurement Of Assets [Line Items] | |||
Financial liabilities | [1] | 0 | 0 |
Level 2 | Marketable Securities | |||
Disclosure Of Fair Value Measurement Of Assets [Line Items] | |||
Financial assets | 0 | 0 | |
Level 2 | Investments at FVTPL | |||
Disclosure Of Fair Value Measurement Of Assets [Line Items] | |||
Financial assets | 0 | 0 | |
Level 2 | Derivative Warrants | |||
Disclosure Of Fair Value Measurement Of Assets [Line Items] | |||
Financial liabilities | [1] | 0 | 0 |
Level 3 | Marketable Securities | |||
Disclosure Of Fair Value Measurement Of Assets [Line Items] | |||
Financial assets | 0 | 0 | |
Level 3 | Investments at FVTPL | |||
Disclosure Of Fair Value Measurement Of Assets [Line Items] | |||
Financial assets | 8,655 | 72,761 | |
Level 3 | Derivative Warrants | |||
Disclosure Of Fair Value Measurement Of Assets [Line Items] | |||
Financial liabilities | [1] | $ 4,400 | $ 11,002 |
[1] The carrying amount is an estimate of the fair value of the derivative warrants and is presented as a current liability. The Company has no cash obligation with respect to the derivative warrants, rather it will deliver common shares if and when warrants are exercised. |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 CAD ($) | |
Disclosure Of Financial Instruments [Line Items] | |
Percentage of change in material assumptions | 10% |
Financial instruments expected credit loss | $ 0.4 |
Derivative Warrant Liabilities | |
Disclosure Of Financial Instruments [Line Items] | |
Change in fair value liabilities | $ 0.7 |
Financial Instruments - Summa_2
Financial Instruments - Summary of Impairment Losses on Accounts Receivable Recognized in Profit or Loss (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | ||
Impairment loss on trade receivables | $ 10,383 | $ 642 |
Impairment loss (reversal) on other receivables | (31) | 674 |
Impairment loss (reversal) on accounts receivable | $ 10,352 | $ 1,316 |
Financial Instruments - Summa_3
Financial Instruments - Summary of Movement in Allowance for Impairment in Respect of Accounts Receivable (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | ||
Balance, beginning of year | $ 2,448 | $ 1,132 |
Net remeasurement of impairment loss allowance | 10,352 | 1,316 |
Balance, end of year | $ 12,800 | $ 2,448 |
Financial Instruments - Timing
Financial Instruments - Timing of Expected Cash Outflows Relating to Financial Liabilities (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure Of Financial Instruments [Line Items] | ||
Accounts payable and accrued liabilities | $ 68,210 | $ 48,153 |
Liquidity Risk Management | ||
Disclosure Of Financial Instruments [Line Items] | ||
Accounts payable and accrued liabilities | 68,210 | |
Financial guarantee liability | 268 | |
Balance, end of year | 68,478 | |
Liquidity Risk Management | Less Than One Year | ||
Disclosure Of Financial Instruments [Line Items] | ||
Accounts payable and accrued liabilities | 68,210 | |
Financial guarantee liability | 0 | |
Balance, end of year | 68,210 | |
Liquidity Risk Management | One to Three Years | ||
Disclosure Of Financial Instruments [Line Items] | ||
Accounts payable and accrued liabilities | 0 | |
Financial guarantee liability | 268 | |
Balance, end of year | 268 | |
Liquidity Risk Management | Three to Five Years | ||
Disclosure Of Financial Instruments [Line Items] | ||
Accounts payable and accrued liabilities | 0 | |
Financial guarantee liability | 0 | |
Balance, end of year | 0 | |
Liquidity Risk Management | Thereafter | ||
Disclosure Of Financial Instruments [Line Items] | ||
Accounts payable and accrued liabilities | 0 | |
Financial guarantee liability | 0 | |
Balance, end of year | $ 0 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - CAD ($) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2023 | |
Related party transactions [abstract] | ||
Related party transaction, terms | The lease term is from November 1, 2017 to October 31, 2027 and includes extension terms from November 1, 2027 to October 31, 2032 and November 1, 2032 to October 31, 2037. | |
Total rent | $ 117,900 | $ 167,000 |
Related Party Transactions - Co
Related Party Transactions - Compensation of Key Management Personnel (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of transactions between related parties [abstract] | ||
Salaries and short-term benefits | $ 7,255 | $ 4,505 |
Share-based compensation | 9,237 | 5,871 |
Key management personnel compensation | $ 16,492 | $ 10,376 |
Non-Controlling Interests - Sum
Non-Controlling Interests - Summarized Statement of Financial Position (Details) - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of subsidiaries [line items] | ||
Current assets | $ 406,914 | $ 501,483 |
Current liabilities | 103,147 | 89,361 |
Nova [Member] | ||
Disclosure of subsidiaries [line items] | ||
Current assets | 36,734 | 18,732 |
Current liabilities | 29,690 | 19,892 |
Current net assets | 7,044 | (1,160) |
Non-current assets | 87,665 | 94,419 |
Non-current liabilities | 43,564 | 45,443 |
Non-current net assets | 44,101 | 48,976 |
Net assets and liabilities | $ 51,145 | $ 47,816 |
Non-Controlling Interests - S_2
Non-Controlling Interests - Summarized Statement of Loss and Comprehensive Loss (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Disclosure of subsidiaries [line items] | |||
Revenue | $ 909,006 | [1] | $ 712,197 |
Nova [Member] | |||
Disclosure of subsidiaries [line items] | |||
Revenue | 259,325 | 176,588 | |
Earnings (loss) and comprehensive income (loss) | $ 3,327 | $ (7,672) | |
[1] The Company has eliminated $ 46.9 million of cannabis operations revenue and equal cost of sales associated with sales to provincial boards that are expected to be subsequently repurchased by the Company’s licensed retailer subsidiaries for resale, at which point the full retail sales revenue will be recognized. The elimination was recorded in the Corporate segment. |
Non-Controlling Interests - S_3
Non-Controlling Interests - Summarized Statement of Cash Flows (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of subsidiaries [line items] | ||
Net cash provided by operating activities | $ (16,648) | $ (6,711) |
Net cash used in investing activities | (24,817) | (230,164) |
Net cash used in financing activities | (43,080) | (41,790) |
Change in cash and cash equivalents | (84,545) | (278,665) |
Nova [Member] | ||
Disclosure of subsidiaries [line items] | ||
Net cash provided by operating activities | 11,721 | 5,848 |
Net cash used in investing activities | (2,330) | (5,549) |
Net cash used in financing activities | (611) | (183) |
Change in cash and cash equivalents | $ 8,780 | $ 116 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 |
Disclosure Of Commitments And Contingencies [Abstract] | ||||
Accrued financial penalties payable | $ 2.5 | $ 2.5 | $ 1 | $ 1.5 |