CALGARY, AB, Dec. 28, 2020 /CNW/ - Sundial Growers Inc.
(NASDAQ: SNDL) ("Sundial" or the "Company"), announced today that
it has entered into a licence agreement (the "Agreement") with
Simply Solventless Concentrates Ltd. ("SSC") (jointly "the
Parties") for the processing and manufacturing of a suite of
solventless cannabis concentrates products by Sundial in its Rocky
View facility using SSC's intellectual property. The Agreement will
enable Sundial to utilize its Rocky View asset, while enhancing its
focus on producing premium inhalables.
The new agreement also provides the Company the
opportunity to leverage SSC's knowledge and expertise
regarding concentrates manufacturing with an expanded line of
products.
"As part of our continued cost and process optimization
initiatives, we are pleased to enter into a licensing agreement
with SSC that includes a non-binding purchase agreement to sell the
Rocky View facility," said Andrew
Stordeur, President and Chief Operating Officer of Sundial.
"We believe that this collaboration with SSC will improve our
returns on invested capital and provide consumers with an excellent
addition to our portfolio of cannabis products."
"Simply Solventless is thrilled to be working with Sundial to
provide a portfolio of pure, potent, terpene-rich solventless
concentrates across Canada," added
Jeff Swainson, President and Chief
Executive Officer of SSC. "From old school hash to live rosin, our
premium solventless concentrates are hand crafted to captivate even
the most discerning of consumers."
Under the Agreement, SSC will receive a royalty on the sale of
products manufactured using the SSC brand and technology. SSC will
supply the non-cannabis materials to produce SSC concentrate
products, in addition to paying Sundial a monthly administration
fee. A minimum of 75% of the cannabis materials required for the
processing and manufacturing of SSC products will be cultivated by
Sundial unless such inventory is unavailable.
The parties are working diligently to enter into definitive
agreements for the sale of the Rocky View asset for $5 million, pending completion of due diligence,
final negotiation of definitive agreement terms and Health Canada
licensing approval. It is the intention of the Parties to enter
into these agreements as soon as practicable.
Sundial expects to scale the distribution of SSC products
across the country, with the first SSC products targeted to be in
stores in the second quarter of 2021. With SSC's support, Sundial
will utilize its craft at scale approach to produce and package
the cannabis concentrate products, while leveraging its
established sales and distribution infrastructure to get the
products to market with speed and scale.
About Sundial Growers Inc.
Sundial is a public company with Common Shares traded on Nasdaq
under the symbol "SNDL".
Sundial is a licensed producer that crafts cannabis using
state-of-the-art indoor facilities. Our 'craft-at-scale' modular
growing approach, award-winning genetics and experienced master
growers set us apart.
Our Canadian operations cultivate small-batch cannabis using an
individualized "room" approach, with 448,000 square feet of total
space.
Sundial's brand portfolio includes Top Leaf,
Sundial Cannabis, Palmetto and
Grasslands. Our consumer-packaged goods
experience enables us to not just grow quality cannabis,
but also to create exceptional consumer and customer
experiences.
We are proudly Albertan, headquartered in Calgary, AB, with operations in Olds, AB,
and Rocky View County, AB.
Forward-Looking Information Cautionary Statement
This news release includes statements containing certain
"forward-looking information" within the meaning of applicable
securities law ("forward-looking statements"), including, but not
limited to, statements regarding the Company's future strategic
initiatives including the potential sale of its Rocky View
facility, the Company's operational goals and demand for the
Company's products. Forward-looking statements are frequently
characterized by words such as "plan", "continue", "expect",
"project", "intend", "believe", "anticipate",
"estimate", "likely", "outlook", "forecast", "may",
"will", "potential", "proposed" and other similar words, or
statements that certain events or conditions "may" or "will" occur.
These statements are only predictions. Various assumptions were
used in drawing the conclusions or making the projections contained
in the forward-looking statements throughout this news release.
Forward-looking statements are based on the opinions and estimates
of management at the date the statements are made, and are subject
to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from
those projected in the forward-looking statements. Please see the
risk factors identified in the Company's filings with the U.S.
Securities and Exchange Commission, including those identified in
the Company's Annual Report on Form 20-F, for a
discussion of the material risks that could cause actual results to
differ materially from the forward-looking information. The Company
is under no obligation, and expressly disclaims any intention or
obligation, to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise, except as expressly required by applicable
law.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/sundial-announces-concentrates-licence-agreement-with-simply-solventless-301198556.html
SOURCE Sundial Growers Inc.