That thread that Sundial Growers (NASDAQ: SNDL) is hanging on appears to be getting thinner. The company announced in a brief release this morning that it has seen certain waivers related to its credit agreements waived for ten additional days, expiring now on May 11, 2020.
The waivers, which had an initial expiry date of April 15, have been extended a second time following the firms failure to meet certain agreed upon milestones related to its its credit facility. The company has been forced to sell its Bridge Farm UK property as a result of the current financial condition that the company has found itself in, which inconveniently has had documented cases of workers contracting COVID-19.
Should Sundial fail to enter into a definitive purchase agreement for the sale of its Bridge Farm UK assets before the expiry of the waivers, the firm will default on its currently outstanding $177.9 million in debt, triggering further problems for the firm. It is currently unclear if the company is in discussions with interested parties related to the sale of the property, which was acquired last July for $129.9 million. The company recently wrote of $100.3 million on the value of the asset within its latest round of financial statements.
Sponsored · Silver47 Exploration Inc.
Sundial Growers last traded at $0.59 on the Nasdaq.
Information for this briefing was found via Sedar and Sundial Growers. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
