North American alcohol and cannabis retailer Alcanna has entered into an asset purchase agreement with Otter Farm and Home Co-operative (Otter Co-op).

Under the agreement, Alcanna will sell 19 convenience-format liquor stores in British Columbia.

The deal, valued at $80.8m, includes inventory and other assets, is subject to standard post-closing adjustments.

Completion of the deal is subject to customary conditions and approvals, as well as the conclusion of Otter Co-op’s financing arrangements.

Alcanna vice chair and CEO James Burns said: “This transaction provides Alcanna with balance sheet strength unprecedented in our company’s history. Alcanna’s board and management will be reviewing strategic options that this transaction provides over the coming months.”

Following the deal, the company will retain the right to build and open its large-format Wine and Beyond stores in British Columbia including one in Kelowna.

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Alcanna plans to use proceeds from the deal in expanding the Wine and Beyond banner in Alberta and British Columbia and also to reduce debt reduction.

Burns added: “There has been a provincial government moratorium on new licences for private liquor retailers in British Columbia since 2002. However, that moratorium expires in June of 2022 with no indication as yet as to what future direction the government might choose to take.

“As a local-based organisation with over 60,000 members and growing, Otter Co-op is extremely well-positioned to adapt to any potential changes given the tremendous consumer loyalty Otter Co-op has established with its members.”

In a separate development, last year Alcanna entered definitive stock purchase agreement with Afognak.