Full Press Release Details
Sundial Announces Concentrates Licence
Agreement with Simply Solventless
CALGARY, AB, Dec. 28, 2020 /CNW/ - Sundial
Growers Inc. (NASDAQ: SNDL) ("Sundial" or the "Company"), announced today that it has entered into a licence
agreement (the "Agreement") with Simply Solventless Concentrates Ltd. ("SSC") (jointly "the Parties")
for the processing and manufacturing of a suite of solventless cannabis concentrates products by Sundial in its Rocky View facility
using SSC's intellectual property. The Agreement will enable Sundial to utilize its Rocky View asset, while enhancing its focus
on producing premium inhalables.
The new agreement also provides the
Company the opportunity to leverage SSC's knowledge and expertise regarding concentrates manufacturing with an expanded line
"As part of our continued cost and process
optimization initiatives, we are pleased to enter into a licensing agreement with SSC that includes a non-binding purchase agreement
to sell the Rocky View facility," said Andrew Stordeur, President and Chief Operating Officer of Sundial. "We believe
that this collaboration with SSC will improve our returns on invested capital and provide consumers with an excellent addition
to our portfolio of cannabis products."
"Simply Solventless is thrilled to be
working with Sundial to provide a portfolio of pure, potent, terpene-rich solventless concentrates across Canada," added Jeff
Swainson, President and Chief Executive Officer of SSC. "From old school hash to live rosin, our premium solventless concentrates
are hand crafted to captivate even the most discerning of consumers."
Under the Agreement, SSC will receive a royalty
on the sale of products manufactured using the SSC brand and technology. SSC will supply the non-cannabis materials to produce
SSC concentrate products, in addition to paying Sundial a monthly administration fee. A minimum of 75% of the cannabis materials
required for the processing and manufacturing of SSC products will be cultivated by Sundial unless such inventory is unavailable.
The parties are working diligently to enter
into definitive agreements for the sale of the Rocky View asset for $5 million, pending completion of due diligence, final negotiation
of definitive agreement terms and Health Canada licensing approval. It is the intention of the Parties to enter into these agreements
as soon as practicable.
Sundial expects to scale the distribution
of SSC products across the country, with the first SSC products targeted to be in stores in the second quarter of 2021. With SSC's
support, Sundial will utilize its craft at scale approach to produce and package the cannabis concentrate products, while
leveraging its established sales and distribution infrastructure to get the products to market with speed and scale.
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 future strategic initiatives including the potential sale of
its Rocky View facility, the Company's operational goals and demand for the Company's products. 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.
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For further information: Sophie Pilon, Corporate Communications,
Sundial Growers Inc., O: 1.587.327.2017, C: 1.403.815.7340, E: spilon@sundialgrowers.com; Jeff Swainson, President and Chief Executive
Officer, Simply Solventless Concentrates Ltd., C: 1.403.796.3640, E: jeff@simplysolventless.ca
CO: Sundial Growers Inc.
CNW 06:00e 28-DEC-20