Sundial and Indiva Announce $22 Million Strategic Investment BROKERED PRIVATE PLACEMENT OFFERING OF $11,000,000 IN COMMON SHARES PLUS $11,000,000 TERM LOAN FACILITY CALGARY, AB and LONDON, ON

Sundial and Indiva Announce $22 Million

Strategic Investment

BROKERED PRIVATE PLACEMENT

OFFERING OF $11,000,000 IN COMMON SHARES PLUS $11,000,000 TERM LOAN FACILITY

CALGARY, AB and LONDON, ON, Feb.

16, 2021 /CNW/ - Sundial Growers Inc. ("Sundial") (NASDAQ: SNDL), a Canadian licensed producer of

recreational cannabis and Indiva Limited ("Indiva") (TSXV: NDVA) (OTCQX: NDVAF), a leading Canadian producer

of cannabis edibles, are pleased to announce a $22,000,000 strategic investment (the "Investment") into Indiva

The Investment will be completed in the form

of a brokered private placement (the "Placement") led by ATB Capital Markets Inc. ("ATB" or the

"Agent") of 25,000,000 common shares of Indiva (the "Common Shares") at a price of $0.44 per

Common Share, to raise gross proceeds of $11,000,000, and a non-revolving term loan facility to Indiva in the principal amount

of $11,000,000 (the "Term Loan"). It is anticipated that Sundial will be the sole subscriber in the Placement.

Proceeds to Indiva, net of fees, commissions and expenses are expected to be approximately $20.9 million.

"Sundial is pleased to support the development

of Indiva's high-quality products," said Zach George, Chief Executive Officer of Sundial. "This transaction broadens

our exposure to the rapidly expanding cannabis edibles category."

Indiva intends to use the net proceeds of the

Placement and Term Loan to retire its outstanding debt in full, which includes its demand loan and promissory note, as well as

for working capital and other general corporate purposes.

"We are delighted to welcome Sundial as

a strategic investor in Indiva," said Niel Marotta, President and Chief Executive Officer of Indiva. "The capital from

this $22 million investment significantly improves Indiva's balance sheet, expands our working capital, and provides the resources

necessary to support strong growth in our business. Indiva will now have the ability to make additional capital investments,

primarily into automation, which will drive higher throughput and profitability, while ensuring our product quality maintains the

best-in-class standard our customers and clients depend upon. Indiva's bolstered financial strength will ensure we can defend

our market share position as a top edibles producer in Canada, and continue to bring new and innovative cannabis products to of-age

Sundial and Indiva intend to complete the Investment

on or about February 23, 2021, subject to certain conditions customary for transactions of this nature, including, but not limited

to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

The securities issued under the Placement will

be subject to a statutory hold period of four months and one day following the closing of the Placement.

Indiva has agreed to: (a) pay to ATB a cash

commission equal to 3.0% of the aggregate gross proceeds received by Indiva from the Placement from Sundial and 6.0% of the aggregate

gross proceeds received by Indiva from the Placement from subscribers other than Sundial, if applicable; and (b) pay to the Agent

a cash commission equal to 2.0% of the total loan commitment under the Term Loan.

Immediately prior to the Placement, Sundial

and its affiliates held no Common Shares. Upon the closing of the Placement it is anticipated that Sundial and its affiliates will

exercise control and direction over 18.45% of the issued and outstanding Common Shares. Sundial and its affiliates do not currently

own any convertible securities of Indiva. The Common Shares are being acquired for investment purposes and, as of the date of this

news release, Sundial and its affiliates have no current intention to acquire control or direction over additional securities of

Indiva above 19.9% of the issued and outstanding Common Shares, either alone or together with any joint actors.

The securities to be offered pursuant to the

Placement have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities

Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account

or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the

U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation

of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which

such offer, solicitation or sale would be unlawful.

ABOUT SUNDIAL GROWERS INC.

Sundial is a public company with common shares

traded on Nasdaq under the symbol "SNDL".Sundial is a licensed producer that crafts cannabis using state-of-the-art indoor

facilities. Our 'craft-at-scale modular growing approach, award-winning genetics and experienced master growers set us apart. Our

Canadian operations cultivate small-batch cannabis using an individualized "room" approach, with 448,000 square feet

of total space. Sundial's brand portfolio includes Top Leaf, Sundial Cannabis, Palmetto and Grasslands.

Our consumer-packaged goods experience enables us to not just grow quality cannabis, but also to create

exceptional consumer and customer experiences. We are proudly Albertan, headquartered in Calgary, AB, with operations

in Olds, AB, and Rocky View County, AB. For more information on Sundial, please go to www.sndlgroup.com.

ABOUT INDIVA LIMITED

Indiva sets the standard for quality and innovation

in cannabis. As a Canadian licensed producer, Indiva creates premium pre-rolls, flower, capsules, and edible products and provides

production and manufacturing services to peer entities. In Canada, Indiva produces and distributes the award-winning Bhang

Chocolate, Wana Sour Gummies, Ruby Cannabis Sugar, Sapphire Cannabis Salt, Artisan Batch, and other

Powered by INDIVA products through license agreements and partnerships. Click here to connect with Indiva on LinkedIn,

Instagram, Twitter and Facebook, and here to find more information on the Company and its products.

DISCLAIMER AND READER ADVISORY

Neither the TSX Venture Exchange nor its

Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has in any way passed upon the

merits of the contents of this press release and neither of the foregoing entities accepts responsibility for the adequacy or accuracy

of this release or has in any way approved or disapproved of the contents of this press release.

Certain statements contained in this press

release constitute forward-looking information. These statements relate to future events or future performance. The use of any

of the words "could", "intend", "expect", "believe", "will", "projected",

"estimated" and similar expressions and statements relating to matters that are not historical facts are intended to

identify forward-looking information and are based on the parties' current belief or assumptions as to the outcome and timing of

such future events. Actual future results may differ materially. In particular, this release contains forward-looking information

relating to the Company's ability to complete the Placement and the Term Loan, the receipt of all approvals, consents and other

matters beyond the Company's control and the use of proceeds. Various assumptions or factors are typically applied in drawing conclusions

or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information

currently available to the parties. The material factors and assumptions include the parties being able to negotiate and enter

into definitive documents with respect to the Placement and the Term Loan, the receipt of regulatory approval and third party consents,

the ability of Indiva to satisfy its existing debt obligations with the proceeds of the Placement and Term Loan and other risks

associated with regulated entities in the cannabis industry.

The forward-looking information contained

in this release is made as of the date hereof and the parties are not obligated to update or revise any forward-looking information,

whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of

the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward looking information.

The foregoing statements expressly qualify any forward-looking information contained herein.

Indiva Limited Logo (CNW Group/Sundial Growers

View original content to download multimedia:http://www.prnewswire.com/news-releases/sundial-and-indiva-announce-22-million-strategic-investment-301228664.html

SOURCE Sundial Growers Inc.

View original content to download multimedia:

For further information: Sophie Pilon, Corporate Communications,

Sundial Growers Inc., O: 1.587.327.2017, C: 1.403.815.7340, E: spilon@sundialgrowers.com; INVESTOR CONTACT, Anthony Simone,

Phone: 416-881-5154, Email: ir@indiva.com

CO: Sundial Growers Inc.

CNW 08:30e 16-FEB-21