SNDL INC Stock Price, News & Analysis

Sundial Growers has completed a $58.9 million acquisition of a special purpose vehicle, funded from its cash reserves of $110 million. This investment secures a senior secured loan from Zenabis Investments, carrying a 14% interest rate and maturing on March 31, 2025. Zenabis is obligated to pay Sundial a royalty based on its net cannabis revenue for 32 fiscal quarters, with terms that vary based on revenue thresholds. Post-investment, Sundial retains approximately $51 million in cash with 919 million shares outstanding.

Sundial Growers (NASDAQ: SNDL) has entered into a licensing agreement with Simply Solventless Concentrates Ltd. for the production of solventless cannabis concentrates at its Rocky View facility. This strategic partnership aims to enhance Sundial's focus on premium inhalables while optimizing costs. Sundial will cultivate at least 75% of the cannabis materials needed for these products. The parties are also negotiating the sale of the Rocky View asset for $5 million, pending due diligence and licensing approval. Initial SSC products are expected to be available by Q2 2021.

Sundial Growers (SNDL) has announced it is now debt-free after prepaying $21.9 million under its senior secured credit facility. This marks the elimination of a total of $227 million in debt this year. CEO Zach George highlighted the financial restructuring, which involved asset sales and capital raises, allowing the company to focus on consumer satisfaction. Sundial reports an unrestricted cash balance of approximately $62 million and has removed all covenants, leading to a projected annual reduction of $3.6 million in interest costs, enhancing strategic opportunities.

Sundial Growers has announced a $50 million prepayment on its senior secured non-revolving term credit facility, improving its balance sheet and reducing annual interest costs by $2.5 million. The company now holds $22 million in outstanding debt and approximately $39 million in unrestricted cash. CFO Jim Keough stated this repayment enhances financial flexibility and supports a path to positive cash flow from operations. Sundial maintains a significant presence in cannabis cultivation with a focus on quality and consumer experience.

Sundial Growers has received approval to transfer its common shares listing to the Nasdaq Capital Market, effective December 15, 2020. This move allows the company an additional 180 days to comply with Nasdaq's minimum bid price requirement. Sundial must maintain a share price of at least $1.00 for 10 consecutive business days before June 26, 2021, to regain compliance. The company has indicated it may consider options such as a reverse stock split if necessary.

Sundial Growers announced it has filed a universal shelf registration statement with the SEC for the potential offer and sale of securities up to US$200 million. Additionally, Sundial has filed a preliminary prospectus for an at-the-market equity program, targeting US$150 million in common shares. Proceeds from the ATM program will primarily be used to reduce debt and finance potential business acquisitions, equipment, or general corporate purposes. The registration, however, is not yet effective, limiting immediate sales or offers of the securities.

Sundial Growers Inc. (NASDAQ: SNDL) announced the full conversion of its senior secured second lien convertible notes, totaling $73.2 million, which were issued on June 5, 2020. The company now holds $72 million in remaining secured debt and has raised $117 million in net cash through recent equity issuances. With 744 million shares outstanding and $85 million in unrestricted cash, Sundial aims to stabilize its financial footing while pursuing profitability. The CFO emphasized that the capital-raising efforts, although pressuring share prices, are vital for long-term viability.

Sundial Growers Inc. (Nasdaq: SNDL) announced its participation in Cowen's 2020 Boston Cannabis Conference, taking place virtually from November 30 to December 2, 2020. CEO Zach George will join a panel discussion at 10:10 a.m. EST on December 2. As a licensed producer operating in Alberta, Sundial utilizes a 'craft-at-scale' approach to cannabis cultivation across 470,000 square feet, offering brands like Top Leaf and Sundial Cannabis.

Sundial Growers (SNDL) reported a net cannabis revenue of $12.9 million for Q3 2020, down 36% from Q2 2020, as branded sales increased to 77% of total sales. Despite experiencing a net loss of $71.4 million, the company reduced its debt by $23 million and improved cash flow, decreasing operational losses by 63%. The average selling price per gram remained stable at $5.53, while gross margin rose to 20%. Sundial's restructuring efforts are focused on a simpler business model and cost reduction to enhance future performance.