Sundial Announces Completion of Financial Restructuring and Debt-Free Status
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.
Zach George, Sundial’s CEO
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.
Original press release
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