Press release
Sundial and Indiva Announce $22 Million Strategic Investment
BROKERED PRIVATE PLACEMENT OFFERING OF $11,000,000 IN COMMON SHARES PLUS $11,000,000 TERM LOAN FACILITY CALGARY, AB and LONDON, ON, Feb. 16, 2021 /PRNewswire/
About this update from Sndl Inc.
[{"type":"text","content":"BROKERED PRIVATE PLACEMENT OFFERING OF $11,000,000 IN COMMON SHARES PLUS $11,000,000 TERM LOAN FACILITY\n CALGARY, AB and LONDON, ON, Feb. 16, 2021 /PRNewswire/ - Sundial Growers Inc. (\"Sundial\") (NASDAQ: SNDL), a Canadian licensed producer of recreational cannabis and Indiva Limited (\"Indiva\") (TSXV: NDVA) (OTCQX: NDVAF), a leading Canadian producer of cannabis edibles, are pleased to announce a $22,000,000 strategic investment (the \"Investment\") into Indiva by Sundial. \n\n \n \n \n \n \n \n\n \nThe Investment will be completed in the form of a brokered private placement (the \"Placement\") led by ATB Capital Markets Inc. (\"ATB\" or the \"Agent\") of 25,000,000 common shares of Indiva (the \"Common Shares\") at a price of $0.44 per Common Share, to raise gross proceeds of $11,000,000, and a non-revolving term loan facility to Indiva in the principal amount of $11,000,000 (the \"Term Loan\"). It is anticipated that Sundial will be the sole subscriber in the Placement. Proceeds to Indiva, net of fees, commissions and expenses are expected to be approximately $20.9 million. \n\"Sundial is pleased to support the development of Indiva's high-quality products,\" said Zach George, Chief Executive Officer of Sundial. \"This transaction broadens our exposure to the rapidly expanding cannabis edibles category.\" \nIndiva intends to use the net proceeds of the Placement and Term Loan to retire its outstanding debt in full, which includes its demand loan and promissory note, as well as for working capital and other general corporate purposes. \n\"We are delighted to welcome Sundial as a strategic investor in Indiva,\" said Niel Marotta, President and Chief Executive Officer of Indiva. \"The capital from this $22 million investment significantly improves Indiva's balance sheet, expands our working capital, and provides the resources necessary to support strong growth in our business. Indiva will now have the ability to make additional capital investments, primarily into automation, which will drive higher throughput and profitability, while ensuring our product quality maintains the best-in-class standard our customers and clients depend upon. Indiva's bolstered financial strength will ensure we can defend our market share position as a top edibles producer in Canada, and continue to bring new and innovative cannabis products to of-...