Sundial Growers (NASDAQ: SNDL) this morning announced that it has entered into a non-binding agreement to sell its Rocky View Facility for $5 million as part of a new licensing agreement with Simply Solventless Concentrates. The licensing agreement itself will see the company utilize SSC’s intellectual property to process and manufacture solventless cannabis concentrate products at the Rocky View facility.
SSC is to receive a royalty on products manufactured and sold using their brand, or their technology. The firm is to provide non-cannabis materials under the arrangement to product solventless products, while also paying a monthly administration fee of an undisclosed amount. 75% of the cannabis products used in the concentrates is required to be cultivated by Sundial unless inventory is not available.
In regards to the ongoing discussions related to the sale of the Rocky View facility to SSC, the companies are reportedly working towards entering a definitive agreement. Such agreement reportedly requires due diligence, finalization of terms and licensing approval from Health Canada.
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It is not clear if the licensing agreement will cease to exist upon the sale of the facility to SSC, given that this is where the products are being manufactured.
Products to be manufactured reportedly include products “from old school hash to live rosin.” Products produced under the arrangement are expected to be in stores in the second quarter of 2021.
Sundial Growers last traded at $0.47 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.
