Sundial Growers (NASDAQ: SNDL) is certainly taking advantage of its frothy market, this morning announcing that it is conducted a US$74.5 million registered offering. The announcement follows a US$100.0 million offering conducted by the company just last week.
The financing will see the company again sell two series of securities. Sundial intends to sell 60.5 million Series A units, consisting of one common share and one series A half warrant, at a price of US$1.00 per unit. Each whole warrant is valid for a period of five years from the date of issuance, with an exercise price of US$1.10 per share.
The company also intends to sell 14.0 million Series B units, which consists of a pre-funded Series B warrant to purchase one common share and one-half of a Series A warrant. Each Series B unit will be sold for US$1.00 each, minus $0.0001, with the remaining exercise price of each Series B warrant being equal to $0.0001 per share.
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The financing is expected to close February 4, 2021.
Notably, upon closing the company will have fulfilled capacity on the shelf registration statement it filed with the SEC on January 25, 2021 – an indicator of just how much dilution the company has experienced over little more than a week. That prospectus was for a total of US$400.0 million. Last week, the company reported a total of US$150.3 million in equity had been raised under the at-the-market program being conducted by the company.
Upon closing, the company will have a cash position of $615 million, along with marketable securities and loans of $57 million and 1.52 billion shares outstanding.
Sundial Growers last traded at $1.21 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.
