Sundial Growers (NASDAQ: SNDL) is capitalizing heavily on its recent popularity, with the announcement this morning that it is conducting a US$100 million registered offering. The offering is to consist of two classes of units to be sold.
The first unit, referred to as Series A, is to consist of one common share and one half Series A warrant. The company intends to sell 100 million Series A units, at a price of US$0.75 each. Each warrant offered under the Series A units will have an expiry of five years from the date of issuance and an exercise price of US$0.80 per share.
In addition to the Series A units, the company will look to sell 33.3 million Series B units. Each Series B unit is to consist of one pre-funded warrant, which will enable the holder to purchase one common share and one half of a Series A warrant. Each Series B unit will be sold for US$0.75, minus US$0.0001, with the remaining exercise price equaling US$0.0001 per common share.
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Proceeds from the financing are to be used for the financing of possible acquisitions, or investments in equipment, facilities, assets, debt or equity of other business, products or tech, along with working capital and general corporate purposes.
The financing is expected to close February 2, 2021.
Sundial Growers last traded at $0.82 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.
