Sundial Announces Issuance of New Warrants and US$89.1 Million Proceeds from Warrant Exercises

Rhea-AI Summary

Sundial Growers (NASDAQ: SNDL) announced holders of 98,333,334 warrants will exercise these for cash at US$0.80 and US$1.10, generating gross proceeds of US$89.1 million. In return, Sundial will issue new warrants allowing purchase of common shares at US$1.50, valid for 42 months. Additionally, the new warrants will be registered per SEC regulations. This transaction underscores Sundial's financial maneuvering to strengthen its capital position and improve share liquidity.

Positive

• Gross proceeds of US$89.1 million from warrant exercises enhance financial stability.
• Issuance of new warrants at US$1.50 could attract further investment.

Negative

• Warrants exercised at lower prices could dilute existing shareholder value.

CALGARY, AB, Feb. 19, 2021 /PRNewswire/ - Sundial Growers Inc. (NASDAQ: SNDL) ("Sundial" or the "Company") announced today that holders (the "Holders") of 98,333,334 warrants (the "Warrants") to purchase common shares (the "Common Shares") of the Company will exercise for cash their Warrants at prices of US$0.80 and US$1.10 for gross proceeds to Sundial of US$89.1 million.

In exchange, the Company will issue 98,333,334 warrants (the "New Warrants"), each entitling the Holders to purchase one Common Share at an exercise price of US$1.50, subject to customary anti-dilution adjustments. Sundial has granted the Holders rights to have the Common Shares issuable upon exercise of the New Warrants registered pursuant to a registration statement (the "Registration Statement") to be filed with the SEC. The New Warrants are immediately exercisable and have a term of 42 months from the effective date of the Registration Statement.

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 filing of any resale registration statement. 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 "Item 3D Risk Factors" in the Company's Annual Report on Form 20-F, which was filed with the Securities and Exchange Commission on March 30, 2020, as updated by the Company's subsequent filings with the SEC, for a discussion of the material risk factors 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.

FAQ

What is the latest news from Sundial Growers (SNDL) regarding warrants?

Sundial Growers announced the exercise of 98,333,334 warrants for gross proceeds of US$89.1 million.

How much money will Sundial Growers receive from the warrant exercise?

The company will receive US$89.1 million from the warrant exercises.

What are the prices for the warrants exercised by Sundial Growers?

The warrants were exercised at prices of US$0.80 and US$1.10.

What is the exercise price of the new warrants issued by Sundial Growers?

The new warrants are exercisable at US$1.50.

How long are the new warrants from Sundial Growers valid for?

The new warrants are valid for 42 months from the effective date of the registration statement.