Sundial Increases Commitment to SunStream Bancorp Inc.

Rhea-AI Summary

Sundial Growers has elevated its investment in SunStream Bancorp from $100 million to $188 million. This joint venture aims to target enhanced risk-return opportunities in the cannabis sector, focusing on a special opportunities fund supported by both Sundial and SAF Group, alongside third-party investors. An update on third-party capital commitments is expected within the next 60 days.

Positive

• Increased investment in SunStream demonstrates confidence in the cannabis market.
• Collaboration with SAF Group may enhance operational capabilities and investment opportunities.

Negative

• Dependence on third-party capital commitments could present future liquidity challenges.
• Uncertainties in the cannabis market may adversely affect growth strategies and profitability.

CALGARY, AB, April 23, 2021 /PRNewswire/ - Sundial Growers Inc. (NASDAQ: SNDL) ("Sundial" or the "Company") announced that it has increased its commitment to SunStream Bancorp Inc. ("SunStream") to $188 million from its previously announced commitment of $100 million. SunStream is a joint venture between Sundial and the SAF Group that will leverage a strategic financial and operational partnership to target asymmetrically enhanced risk-return opportunities in the cannabis industry to provide exposure to a portfolio of attractive debt, equity and hybrid investments. Initially, SunStream expects to form a special opportunities fund with capital from the Company and the SAF Group, in addition to commitments from third-party limited partners. Sundial expects to provide an update on third-party capital commitments within the next 60 days.

About Sundial Growers Inc. 

Sundial is a public company with common shares traded on the Nasdaq Capital Market 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 creation of SunStream, SunStream's investment strategy, including the creation of the special opportunities fund and the ability to receive commitments from third parties, contemplated mandates, creation of a special opportunities fund, the Company's financing initiatives, operational goals, demand for the Company's products, the Company's ability to achieve profitability, the development of the legal cannabis market, future financings and the maintenance of production levels. In addition, depending on the development of the cannabis market and the Company's ability to capture any growth opportunities, future liquidity issues may continue to arise, which could have a material adverse effect on our business, results of operations and financial condition. 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 SEC, including those identified in the Company's Annual Report on Form 20-F and other filings with the SEC, 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.

FAQ

What is Sundial Growers' increased commitment to SunStream?

Sundial Growers increased its commitment to SunStream Bancorp from $100 million to $188 million.

What is the purpose of Sundial's investment in SunStream?

The investment aims to target enhanced risk-return opportunities in the cannabis industry through a special opportunities fund.

When can investors expect an update on third-party capital commitments?

Sundial expects to provide an update on third-party capital commitments within the next 60 days.

What are the risks associated with Sundial's investment in SunStream?

Risks include dependence on third-party capital commitments and uncertainties in the cannabis market affecting growth and profitability.

What is the stock symbol for Sundial Growers?

The stock symbol for Sundial Growers is SNDL.