Press release
SunStream USA Launches as a Result of Restructuring of Parallel
CALGARY, AB, Sept. 22, 2023 /PRNewswire/ - SunStream USA was formed today in anticipation of SunStream Bancorp Inc.'s ("SunStream") signing of restructuring
About this update from Sndl Inc.
[{"type":"text","content":"CALGARY, AB, Sept. 22, 2023 /PRNewswire/ - SunStream USA was formed today in anticipation of SunStream Bancorp Inc.'s (\"SunStream\") signing of restructuring documentation with Surterra Holdings, Inc. d/b/a Parallel (\"Parallel\"). SunStream is a joint venture sponsored by SNDL Inc. (Nasdaq: SNDL) (\"SNDL\").\n\n \n \n \n \n \n \n\n \nSunStream USA is anticipated to be a U.S. platform, with one or more independent third-party investors, which will be independently managed and governed. SunStream or its designee, subject to regulatory and listing exchange approval, is vetting an opportunity to own non-voting and non-participating exchangeable securities in SunStream USA, which would include the right to exchange such securities into common equity or equity-like securities in the future if certain conditions are met. SNDL is anticipated to have board nomination rights in SunStream USA, which would potentially be served by SNDL's Chief Executive Officer, Zach George.\nThe SunStream USA structure, subject to regulatory approval, could allow SNDL to participate in the future in the equitization of certain senior credits made by affiliates of SunStream that are currently undergoing restructurings while complying with all U.S. federal and state laws. The SunStream USA structure will be reviewed by Nasdaq as the required listing authority for SNDL prior to its execution.\n\"The restructuring of non-performing credit investments in SunStream is a notable opportunity to rebalance the risk-reward of SNDL's existing investments,\" said Mr. George.\nParallel RestructuringOn September 21, 2023, Talladega LP, a partnership, wholly owned by affiliates of SunStream (\"Talladega\"), together with other secured creditors of Parallel, signed a strict foreclosure agreement (the \"Foreclosure Agreement\") with Parallel and certain of its subsidiaries. Pursuant to the Foreclosure Agreement, subject to the satisfaction of closing conditions, including regulatory approvals, CDXX TransCo, LLC (\"TransactionCo\") will foreclose upon certain of Parallel's cannabis operations in Florida, Massachusetts, Texas, and Nevada that were pledged as collateral under Parallel's existing debt instruments (the \"Parallel Transaction\"). In the second quarter of 2023, Parallel's net revenue was US$52 million or US$208 million annualized.\nFollowing the closing of the P...