Sundial Announces Extension of Alcanna Arrangement Agreement Outside Date CALGARY, AB

Sundial Announces Extension of Alcanna Arrangement

Agreement Outside Date

CALGARY, AB, Feb. 25, 2022 /CNW/ - Sundial Growers

Inc. (Nasdaq: SNDL) ("Sundial" or the "Company") today announced that by mutual agreement with Alcanna

Inc. ("Alcanna"), they are extending the outside date for closing the transaction (the "Arrangement")

contemplated under the arrangement agreement between Sundial and Alcanna dated October 7, 2021, and amended on January 6, 2022 (the "Arrangement

Agreement"), to March 30, 2022 in accordance with terms of the Arrangement Agreement.

Sundial and Alcanna agreed to extend the outside date

to complete the required closing matters contemplated by the Arrangement Agreement. The parties expect that the Arrangement will close

on or before the March 30, 2022.

ABOUT SUNDIAL GROWERS INC.

Sundial is a public company whose shares are traded

on Nasdaq under the symbol "SNDL". Its business is reported and analyzed under three operating segments: Cannabis Operations,

Cannabis Retail, and Investment Operations.

As a licensed producer that crafts small-batch cannabis

using state-of-the-art indoor facilities, Sundial's 'craft-at-scale' modular growing approach, award-winning genetics, and experienced

growers set us apart. Sundial's brand portfolio includes Top Leaf, Sundial Cannabis, Palmetto, and Grasslands. Sundial also operates the

Spiritleaf retail banner. Spiritleaf aims to be the most knowledgeable and trusted source of recreational cannabis by offering a premium

consumer experience and quality curated cannabis products.

Sundial's investment operations seek to deploy strategic

capital through direct and indirect investments and partnerships throughout the global cannabis industry.

Sundial is proudly Albertan, headquartered in Calgary,

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

Forward-Looking Information

This news release contains forward-looking statements

or information (collectively "forward-looking statements") within the meaning of applicable securities legislation, relating

to, among other things, the completion and timing of the Arrangement; the ability of the parties to satisfy all of the closing conditions

and the anticipated timing for closing of the Arrangement; and the anticipated timing thereof. Forward-looking statements are typically

identified by words such as "continue", "anticipate", "will", "should", "plan", "intend",

and similar words suggesting future events or future performance. All statements and information other than statements of historical fact

contained in this news release are forward-looking statements. 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. The forward-looking statements contained in this news release are expressly qualified

by this cautionary statement.

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SOURCE Sundial Growers Inc.

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/February2022/25/c8979.html

For further information: Sophie Pilon, Corporate Communications,

Sundial Growers Inc., Telephone: 1.587.327.2017, Email: spilon@sundialgrowers.com

CO: Sundial Growers Inc.

CNW 16:30e 25-FEB-22