Sundial Announces $50 million Prepayment on Senior Secured Non-Revolving Term Credit Facility CALGARY, AB

Sundial Announces $50 million Prepayment

on Senior Secured Non-Revolving Term Credit Facility

CALGARY, AB, Dec. 15, 2020 /CNW/ - Sundial

Growers Inc. (Nasdaq: SNDL) ("Sundial" or the "Company") today announced that the Company has prepaid $50 million

of the outstanding principal under its senior secured non-revolving term credit facility (the "Facility") to further

improve its balance sheet. All amounts are denominated in Canadian dollars unless otherwise noted.

The debt repayment will result in an annualized

reduction in interest costs of $2.5 million. Sundial's remaining indebtedness consists of $22 million under the Facility and the

Company's current unrestricted cash balance is approximately $39 million.

"The accelerated repayment of a significant

portion of our indebtedness is a further step in advancing our financial flexibility and reducing our overall cost structure,"

said Sundial's Chief Financial Officer, Jim Keough. "It reflects a substantial turnaround from our financial position earlier

this year. Our current cash position enables us to focus on a path to positive cash flow from operations, refining our capital

structure and potential future strategic opportunities."

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.

Forward-Looking Information Cautionary Statement

This news release includes statements containing

certain "forward-looking information" within the meaning of applicable securities law ("forward-looking statements"),

including, but not limited to, statements regarding the Company's debt position, cash balance and statements regarding the Company's

future strategic initiatives. Forward-looking statements are frequently characterized by words such as "plan", "continue",

"expect", "project", "intend", "believe", "anticipate", "estimate", "likely",

"outlook", "forecast", "may", "will", "potential", "proposed"

and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements

are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking

statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the

date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could

cause actual events or results to differ materially from those projected in the forward-looking statements. Please see the risk

factors identified in the Company's filings with the U.S. Securities and Exchange Commission, including those identified in the Company's

Annual Report on Form 20-F, for a discussion of the material risks that could cause actual results to differ materially from

the forward-looking information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update

or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except

as expressly required by applicable law.

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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

CO: Sundial Growers Inc.

CNW 06:00e 15-DEC-20