CALGARY, AB, Dec. 21, 2020 /PRNewswire/ - Sundial Growers Inc.
(Nasdaq: SNDL) ("Sundial" or the "Company") announced today that
the Company is debt-free, following the prepayment of the remaining
outstanding principal under its senior secured non-revolving term
credit facility (the "Facility") of $21.9
million. As of today, no debt remains outstanding. All
amounts are denominated in Canadian dollars unless otherwise noted.
"While many cannabis companies have significant debt burdens,
Sundial is proud to announce that we are now debt-free," said
Zach George, Sundial's CEO.
"In February 2020, the global
pandemic was just emerging, Sundial was running out of cash just
two quarters after its IPO, and we were in breach of covenants
under the terms of our senior secured credit facility. Through a
combination of asset sales, debt for equity swaps, capital raises,
and cash repayments, we have eliminated $227
million in debt this year. Our financial restructuring
is now complete, enabling us to bring greater focus to what really
matters – delighting consumers."
Sundial has a current unrestricted cash balance of approximately
$62 million and outstanding common
shares of 840 million. The total Facility prepayment in the past
week of $71.9 million will result in
an annualized reduction in interest costs of $3.6 million and removes all covenants and
restrictions on the Company's ability to pursue strategic
opportunities.
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 debt position, cash
balance outstanding shares and statements regarding the Company's
future strategic initiatives. 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.
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SOURCE Sundial Growers Inc.
