Sundial Announces Operational Adjustments to Adapt to Current Market Conditions and Improve Liquidity CALGARY

Sundial Announces Operational Adjustments

to Adapt to Current Market Conditions and Improve Liquidity

CALGARY, April 9, 2020 /CNW/ - Sundial

Growers Inc. (Nasdaq: SNDL) ("Sundial" or "the Company") announced changes to its operations to improve liquidity

and lower its cost structure, in response to current market conditions and the COVID-19 pandemic. These changes include a focus

on accelerating the monetization of inventory, further reductions to its workforce and the temporary curtailment of cultivation

and harvest activities, while maintaining current processing levels to meet anticipated demand.

"We have taken significant actions to

restructure our business over the last few months to drive operational efficiencies and adapt to current market conditions,"

said Zach George, Sundial's Chief Executive Officer. "Reducing our cultivation and harvest activities while drawing down inventory

are strategic choices we are making to improve cash conversion and control our variable production costs. These actions are consistent

with Sundial's long-term goals of reaching sustainable profitability and optimizing our asset base."

On January 30th, Sundial announced

an annualized cost reduction target of $10-15 million. Management has surpassed this target, and with these additional labour adjustments

expects to realize annualized net cost reductions of approximately $28 million. The cost reduction initiatives include reductions

in workforce, enhancing facility workflows and processes, eliminating all non-essential spend and pausing all new hiring, with

the exception of a very small number of critical roles to be filled.

Sundial is committed to producing high quality

products while also maintaining its steadfast approach to cost discipline. The Company's unique "craft-at-scale" operational

infrastructure allows it to quickly adjust operating capacity to reflect industry conditions. Sundial is closely monitoring customer

demand and is prepared to further adjust operations as the industry dictates. Sundial continues to have strong partnerships with

provincial boards and has shipped its first order of cannabis products to the Soci t qu b coise

du cannabis (SQDC), Quebec's legal retailer of recreational cannabis. With Quebec, Sundial's network reaches 97% of the

Canadian cannabis market.

Approximately 65% of the impacted employees

are considered temporary layoffs and can be recalled back to work for the Company in the next 120 days, as per the new Alberta

Government guidelines. This allows Sundial to respond quickly to increased market demand, or employee absenteeism as a result of

COVID-19, by accessing furloughed employees quickly. The Company will continue to cover the cost of employee health and dental

benefits for all employees temporarily laid-off during this difficult time. The Company appreciates the challenges this decision

will present to its valued employees and their families and has made every effort to provide those impacted with clear direction

on how to access government sponsored wage loss programs.

Sundial is closely monitoring the COVID 19

virus in Canada and has developed a risk assessment and corresponding action plan to ensure the health and safety of employees

and assure business continuity. The situation is evolving quickly, and Sundial stands ready to adjust its plan and take action

"The safety and well-being of our people

is our priority and we are taking a number of precautionary measures to prevent the possible spread of the virus at our facilities.

In addition, we are actively encouraging all employees to closely follow the advice of our public health authorities," added

To date Sundial has responded by implementing

An Emergency Response Team was established to monitor pandemic

updates, review safety protocols, assess public health risk and develop action plans

Moved to a work-from-home environment for any functions

Mandatory temperature screening before entering the premises

at the Olds and Rocky View County facilities

Implemented travel restrictions for work related travel,

restricted visitor access to the facility and imposed self-isolation for employees who have symptoms of sickness and/or returned

from international travel as of March 13

Increased focus on sanitation and physical distancing,

with additional hand sanitizing stations throughout the facility, cleaning and sanitizing of high touch surfaces, and additional

cleaning in common areas

Imposed restrictions on large meetings and gatherings,

opting for video conferencing meetings

Worked collaboratively with appropriate government programs

at both provincial and federal levels

Reminders of measures to reduce risk of infection and prevent

possible spread including regular washing of hands and avoiding face touching.

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

Our Canadian operations cultivate small-batch

cannabis using an individualized "room" approach, with 470,000 square feet of total space. In the United Kingdom, we

grow traceable plants, including hemp, ornamental flowers and edible herbs within 1.75 million square feet of environmentally friendly

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") Forward-looking-statements in this release include, but are not limited

to, the potential cost -reduction plans of the Company. Forward-looking statements are frequently characterized by words such as

"plan", "continue", "expect", "project", "intend", "believe", "anticipate",

"estimate", "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. 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.

View original content to download multimedia:http://www.prnewswire.com/news-releases/sundial-announces-operational-adjustments-to-adapt-to-current-market-conditions-and-improve-liquidity-301038603.html

SOURCE Sundial Growers Inc.

View original content to download multimedia:

For further information: Media Contact: Sophie Pilon, Corporate

Communications Manager, Sundial Growers Inc. , O: 1.587.327.2017, C: 1.403.815.7340, E: spilon@sundialgrowers.com

CO: Sundial Growers Inc.

CNW 17:06e 09-APR-20