Sundial Growers Announces Closing of its US$20 Million Registered Offering

Rhea-AI Summary

Sundial Growers has successfully completed a registered offering, raising approximately US$20 million through the sale of 25,820,000 Series A Units and 14,280,000 Series B Units. Each Series A Unit consists of one common share and one Series A Warrant, while the Series B Units consist of a pre-funded warrant. Units were sold at US$0.50 each, with the remaining exercise price of Series B Warrants at US$0.0001 per common share. Canaccord Genuity LLC served as the sole book-running manager for this transaction.

Positive

• Successfully raised approximately US$20 million through a registered offering.
• Completion of the offering can enhance liquidity and support business operations.

Negative

• The dilution of existing shareholders due to the issuance of new shares through the offering.

CALGARY, AB, Aug. 18, 2020 /PRNewswire/ - Sundial Growers Inc. (NASDAQ: SNDL) ("Sundial" or the "Company") announced today that it has closed a best efforts underwritten registered offering of 25,820,000 Series A Units, each consisting of one common share and one Series A Warrant to purchase one common share and 14,280,000 Series B Units (and together with the Series B Units, the "Units"), each consisting of one pre-funded Series B Warrant (together with the Series A Warrants, the "warrants") to purchase one common share and one Series A Warrant to purchase one common share. Each Series A Unit will be sold at a price of US$0.50 per Series A Unit and each Series B Unit will be sold at a price of US$0.50 per Series B Unit, minus US$0.0001, and the remaining exercise price of each Series B Warrant will equal US$0.0001 per common share. Sundial's gross proceeds from this offering were approximately US$20 million, before deducting underwriting discounts and estimated offering expenses.

Canaccord Genuity LLC is acting as sole book-running manager for the offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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 470,000 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 consummation of this offering. 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 31, 2020, 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 was the amount raised by Sundial Growers in the recent offering?

Sundial Growers raised approximately US$20 million through its registered offering.

How many Units did Sundial Growers sell in their offering?

Sundial Growers sold 25,820,000 Series A Units and 14,280,000 Series B Units.

What is the selling price per Unit in Sundial Growers' offering?

Each Series A and Series B Unit was sold at a price of US$0.50.

Who acted as the book-running manager for Sundial Growers' offering?

Canaccord Genuity LLC acted as the sole book-running manager for the offering.