CALGARY, May 12, 2020 /CNW/ - Sundial Growers Inc.
(Nasdaq: SNDL) ("Sundial" or the "Company") announced that the
Company's senior lenders are assessing potential terms
for a credit agreement amendment, including covenant amendments,
that would improve the Company's flexibility under its covenants.
As previously announced, the Company received waivers and
agreements related to defaults under its existing credit agreements
on March 30, 2020 subject to
completion of certain defined milestones by April 15, 2020. The deadline for those milestones
was subsequently extended to April 30,
2020 and, then again to May 11,
2020. Those waivers and agreements expired May 11, 2020; however, the Company's senior
lenders have indicated that they do not intend to issue a notice of
default at this time while in active discussions with respect to
the contemplated credit agreement amendment.
In addition, the Company is in advanced stages of discussions
for the potential sale of its Bridge Farm assets and restructuring
of the related credit facility.
There is no guarantee that we will be able to consummate a sale
of the Bridge Farm assets or a restructuring of the related credit
facility. Furthermore, there is no guarantee that our senior
lenders will agree to the contemplated credit agreement amendments,
will grant additional waivers under the credit agreements or will
refrain from issuing notices of default. Any failure or delay in
completing these transactions or any acceleration of our
outstanding debt would have a significant negative impact on the
Company's liquidity and further impact the Company's ability to
operate as a going concern. In such a case, the Company would look
to alternative sources of financing, delay capital expenditures
and/or evaluate potential asset sales, and potentially could be
forced to curtail or cease operations or seek relief under the
applicable bankruptcy or insolvency laws.
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. In the United Kingdom, we
grow traceable plants, including hemp, ornamental flowers and
edible herbs within 1.75 million square feet of environmentally
friendly facilities.
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 certain statements and information
that constitute forward-looking information within the meaning of
applicable securities laws. All statements in this news release,
other than statements of historical facts, including statements
with respect to the planned restructuring of the Company's credit
facilities, the completion of any transactions involving Bridge
Farm, the Company's senior lenders continuing to not exercise
available rights and remedies, and possible future financings are
forward-looking statements.
Forward-looking statements or information relate to future
events and future performance and include statements regarding the
expectations and beliefs of management. Often, but not
always, forward-looking statements and forward-looking information
can be identified by the use of words such as "plans", "expects",
"potential", "is expected", "anticipated", "is targeted", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or
"believes" or the negatives thereof or variations of such words and
phrases or statements that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements or information include, but
are not limited to, statements or information with respect to known
or unknown risks, uncertainties and other factors which may cause
the actual industry results, to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements or information.
Forward-looking statements or information are subject to a
variety of risks and uncertainties which could cause actual events
or results to differ from those reflected in the forward-looking
statements or information, including, without limitation, risks and
uncertainties relating to: failure to complete the credit facility
restructuring, the state of financial markets, regulatory approval,
requirements for additional capital; interest rates; the global
economy; the speculative nature of production activities; periodic
interruptions to production, labor disputes; supply problems;
uncertainty of production and cost estimates; changes in project
parameters as plans continue to be refined; volatility of the
market price of the Company's common shares; insurance;
competition; currency fluctuations; loss of key employees; other
risks of the cannabis industry as well as those factors discussed
in the section entitled "Risk Factors" in the Company's Annual
Report on Form 20-F dated March 30,
2020. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those described in
forward-looking statements or information. The Company disclaims
any intent or obligation to update forward-looking statements or
information except as required by law, and you are referred to the
full discussion of the Company's business contained in the
Company's reports filed with the securities regulatory authorities
in Canada and the United states.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially, there may be
other factors that could cause results not to be as anticipated,
estimated or intended.
The Company provides no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking statements. The Company does not assume the
obligation to revise or update these forward-looking statements
after the date of this document or to revise them to reflect the
occurrence of future unanticipated events, except as may be
required under applicable securities laws.
SOURCE Sundial Growers Inc.