Press release
Sundial Announces Operational Adjustments to Adapt to Current Market Conditions and Improve Liquidity
CALGARY, April 9, 2020 /PRNewswire/ - Sundial Growers Inc. (Nasdaq: SNDL) ("Sundial" or "the Company") announced changes to its operations to improve
About this update from Sndl Inc.
[{"type":"text","content":"CALGARY, April 9, 2020 /PRNewswire/ - Sundial Growers Inc. (Nasdaq: SNDL) (\"Sundial\" or \"the Company\") announced changes to its operations to improve liquidity and lower its cost structure, in response to current market conditions and the COVID-19 pandemic. These changes include a focus on accelerating the monetization of inventory, further reductions to its workforce and the temporary curtailment of cultivation and harvest activities, while maintaining current processing levels to meet anticipated demand.\n\n \n \n \n \n \n \n\n \n\"We have taken significant actions to restructure our business over the last few months to drive operational efficiencies and adapt to current market conditions,\" said Zach George, Sundial's Chief Executive Officer. \"Reducing our cultivation and harvest activities while drawing down inventory are strategic choices we are making to improve cash conversion and control our variable production costs. These actions are consistent with Sundial's long-term goals of reaching sustainable profitability and optimizing our asset base.\" \nOn January 30th, Sundial announced an annualized cost reduction target of $10-15 million. Management has surpassed this target, and with these additional labour adjustments expects to realize annualized net cost reductions of approximately $28 million. The cost reduction initiatives include reductions in workforce, enhancing facility workflows and processes, eliminating all non-essential spend and pausing all new hiring, with the exception of a very small number of critical roles to be filled.\nSundial is committed to producing high quality products while also maintaining its steadfast approach to cost discipline. The Company's unique \"craft-at-scale\" operational infrastructure allows it to quickly adjust operating capacity to reflect industry conditions. Sundial is closely monitoring customer demand and is prepared to further adjust operations as the industry dictates. Sundial continues to have strong partnerships with provincial boards and has shipped its first order of cannabis products to the Société québécoise du cannabis (SQDC), Quebec's legal retailer of recreational cannabis. With Quebec, Sundial's network reaches 97% of the Canadian cannabis market. \nApproximately 65% of the impacted employees are considered temporary layoffs and can be recalled back to work f...