Sunday, September 14, 2025

Latest

Zenabis Enters $60 Million Credit Facility To Pay Off Sundial Debt

Zenabis Global (TSX: ZENA) this morning announced that it has entered into a credit agreement with a private debt fund as it works to rid itself of the debt currently held by Sundial Growers (NASDAQ: SNDL). The revolving credit facility, for a total amount of $60.0 million, will be secured based on eligible receivables, inventory, and real estate.

Zenabis’ scramble to get out of its currently outstanding secured debenture follows the $58.9 million of secured debt being acquired by Sundial at the end of December. The company was subsequently issued a notice of default, which Zenabis subsequently publicly blasted Sundial for, with the notice stated to be a means of improperly foreclosing on Zenabis’ assets.

Under the terms of the credit facility, the company is to pay an interest rate to the greater of 10%, and TD Bank’s prime rate plus 7.55%, calculated daily and payable monthly. The debt is for a one year period, having a maturity date of January 21, 2022, while two 180 day extension periods are available as well for an undisclosed fee. Undrawn amounts under the facility are to bear interest at a rate of 2.40% per annum.

The company is also required to pay to the lenders 6.0 million common shares as a partial commitment fee.

Proceeds from the facility, as stated above, will be used to repay the outstanding debenture currently held by Sundial, which bears interest at 14% per annum, as well as for general corporate purposes and to finance working capital requirements.

Zenabis Global last traded at $0.10 on the TSX.


Information for this briefing was found via Sedar and Zenabis Global. 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.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Zenabis Announces Cannabis Infused Beverage Production Arrangement

Zenabis Global (TSX: ZENA) this morning released an update related to its second generation cannabis...

Wednesday, February 19, 2020, 08:40:15 AM

Sundial Growers Announces US$150 Million At The Market Financing

Sundial Growers (NASDAQ: SNDL) is looking to take advantage of the absolutely wild volume that...

Friday, December 4, 2020, 08:51:54 AM

Sundial Growers Secures Further Funding

Sundial Growers (NASDAQ: SNDL) announced this morning that it had secured $140 million in additional...

Friday, August 30, 2019, 09:43:39 AM

Sundial Growers Readies for Nasdaq Listing

Sundial Growers put out a release this morning, indicating that the firm had raised over...

Monday, July 8, 2019, 10:34:23 AM

Sundial Growers Partners With Choklat To Enter Edibles Market

Sundial Growers (NASDAQ: SNDL) has entered the edibles market. The company this morning announced that...

Monday, November 9, 2020, 09:01:09 AM