Press release
Sundial Announces Fourth Quarter and Full-Year 2019 Financial Results and Provides Operational and Financial Outlook
CALGARY, March 30, 2020 /PRNewswire/ - Sundial Growers Inc. (Nasdaq: SNDL) ("Sundial" or the "Company") reported its financial and operating results for the
About this update from Sndl Inc.
[{"type":"text","content":"CALGARY, March 30, 2020 /PRNewswire/ - Sundial Growers Inc. (Nasdaq: SNDL) (\"Sundial\" or the \"Company\") reported its financial and operating results for the year ended December 31, 2019, as well as provided an update on its liquidity and strategic initiatives.\n\n\"Sundial grew quickly in 2019. We expanded and received licencing for our state-of-the art operating facilities, successfully launched four product lines and built a strong following with our core consumers,\" said Zach George, Sundial's Chief Executive Officer. \"Despite our successes in 2019, we also faced a number of internal and external challenges, including operational difficulties, excess leverage, poor cost controls, a loss of focus on our core value proposition, regulatory delays, and rapidly evolving industry conditions. These combined factors led to fourth quarter results that were below our expectations. As a result, we are making material changes to our business to position Sundial for improved performance, while also negotiating with our lenders in an attempt to restructure our credit facilities. We are in the midst of an in-depth portfolio review and will assess each business opportunity and partnership in an objective manner as we evaluate the economic viability of each initiative. We intend to update investors on the outcome of this portfolio review along with our first quarter results.\"\nCredit Facility Restructuring\nAt December 31, 2019, the Company was not in compliance with the interest coverage ratio covenant under its Syndicated Credit Agreement. As a result, as at December 31, 2019, the full principal amount of the Syndicated Credit Agreement and the full principal amount of the Term Debt Facility were classified as current liabilities on the Company's statement of financial position. Additionally, based on the Company's most recent financial projections management is forecasting that it will be in violation of the Syndicated Credit Agreement financial maintenance covenants as at March 31, 2020, June 30, 2020 and September 30, 2020. \nSubsequent to December 31, 2019, the Company has obtained a waiver under the Syndicated Credit Agreement for the December 31, 2019 interest coverage ratio covenant breach and a waiver for the corresponding breach and other administrative breaches of the Term Debt Facility. Under the terms of the waivers, the ...