Sundial Growers Announces Closing of its US$74.5 Million Registered Offering CALGARY, AB

Sundial Growers Announces Closing of its

US$74.5 Million Registered Offering

CALGARY, AB, Feb. 4, 2021 /CNW/ - Sundial

Growers Inc. (NASDAQ: SNDL) ("Sundial" or the "Company") announced today that it has closed a best efforts

underwritten registered offering of 60,500,000 Series A Units, each consisting of one common share and one-half Series A Warrant,

with each whole Series A Warrant entitling the holder to purchase one common share, and 14,000,000 Series B Units (and together

with the Series B Units, the "Units"), each consisting of one pre-funded Series B Warrant (together with the Series A

Warrants, the "Warrants") to purchase one common share and one-half Series A Warrant, with each whole Series A Warrant

entitling the holder to purchase one common share. Each Series A Unit was sold at a price of US$1.00 per Series A Unit and each

Series B Unit was sold at a price of US$1.00 per Series B Unit, minus US$0.0001, and the remaining exercise price of each Series

B Warrant is equal to US$0.0001 per common share. The Warrants are immediately exercisable and have a term of five years commencing

on the date of issuance. Only whole Warrants are exercisable. The exercise price of the Series A Warrants is equal to US$1.10 per

common share. All of the securities in the offering are being sold by Sundial.

Sundial's gross proceeds from the offering

were approximately US$74.5 million, before deducting underwriting discounts and estimated offering expenses. Following the

closing of the offering, Sundial has unrestricted cash of approximately $610 million, in addition to marketable securities and

loans receivable of approximately $61 million, and approximately 1.56 billion common shares outstanding.

This press release shall not constitute an

offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction

in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of

any such state or jurisdiction.

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"). 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

CO: Sundial Growers Inc.

CNW 12:25e 04-FEB-21