SNDL has increased its indirect economic interest in Parallel, a major U.S. marijuana operator with businesses in Florida, Texas and Massachusetts, from approximately 67% to 92%, according to a new filing with the U.S. Securities and Exchange Commission.
The increase follows a recently completed rights offering by Parallel, which operates dispensaries under brands including Surterra Wellness, Goodblend and New England Treatment Access. In its October 15 SEC filing, SNDL said the transaction provides additional liquidity for Parallel’s operations while expanding the Canadian company’s financial interest in the U.S. marijuana market.
The development follows SNDL’s July announcement that an entity backed by its Sunstream joint venture had completed the acquisition of 56 Parallel retail locations and three cultivation and manufacturing facilities. At the time, SNDL reported an indirect economic interest equivalent to 66.7% of the acquiring entity’s equity and 69.4% of its debt.
The acquired operations include 43 Surterra Wellness dispensaries in Florida, 10 Goodblend retail or pickup locations in Texas and three New England Treatment Access dispensaries in Massachusetts. The businesses were generating approximately $150 million in annualized revenue when the July acquisition was completed.
SNDL also disclosed that Sunstream is financing the acquisition and development of a wholly owned marijuana cultivation and processing facility in Gainesville, Florida. The facility is intended to support cultivation, manufacturing and finished-product production for Parallel’s Florida retail network.
Despite the increased financial interest, SNDL has not yet completed the steps necessary to directly consolidate Parallel’s U.S. medical marijuana operations into its financial reporting. The company said any future integration remains subject to applicable legal, regulatory, accounting and Nasdaq requirements.
The original Parallel acquisition was completed through a secured creditor foreclosure and restructuring that eliminated approximately $842 million in debt. SNDL has identified the U.S. medical marijuana market as an expansion opportunity, with Parallel providing an established operating presence across three states.
The company’s latest disclosure does not specify the amount invested through the rights offering or establish a timeline for converting its increased indirect interest into direct, consolidated ownership.
