Sleep Country Canada Holdings Inc. (TSX:ZZZ) entered into an agreement to acquire Canadian assets of Casper Sleep Inc. for $20.6 million on April 10, 2023. The consideration consists of cash $20.6 million payable at close and Sleep Country will receive a cumulative $4.5 million marketing transition fee from Casper Sleep Inc. over the next four years and receive three-year warrants which would convert into a ~1% stake in Casper Sleep Inc. upon exercise. In a related transaction closed on March 14, 2023; Sleep Country invested $20 million in five-year convertible notes which will have the option of converting into ~5% of Casper Sleep Inc.'s shares.

Acquisition and convertible note financing to be funded through a combination of cash on hand and a draw on Sleep Country’s existing revolving credit facility. The transaction is expected to close on April 13, 2023. The transaction is expected to be accretive to EPS in Year 2.