Sundial and Indiva Announce Closing of $22 Million Strategic Investment

Nachrichtenquelle: globenewswire
24.02.2021, 00:43  |  121   |   |   

Brokered Private Placement Offering of $11,000,000 and $11,000,000 Term Loan Facility

CALGARY, Alberta and LONDON, Ontario, Feb. 23, 2021 (GLOBE NEWSWIRE) -- Sundial Growers Inc. ("Sundial") (NASDAQ: SNDL), a Canadian licensed producer of recreational cannabis and Indiva Limited (“Indiva”) (TSXV:NDVA) (OTCQX:NDVAF), a leading Canadian producer of cannabis edibles, are pleased to announce the closing of the previously announced $22,000,000 strategic investment (the “Investment”) into Indiva by Sundial.

The Investment was completed by way of a brokered private placement (the "Placement") led by ATB Capital Markets Inc. ("ATB" or the "Agent") of 25,000,000 common shares of Indiva (the "Common Shares") at a price of $0.44 per Common Share, raising gross proceeds of $11,000,000 (the "Equity Investment"), and a secured non-revolving term loan facility to Indiva in the principal amount of $11,000,000 (the "Term Loan"). Sundial was the sole subscriber in the Placement and sole lender of the Term Loan.

The Term Loan matures on February 23, 2024 (the "Maturity Date") and bears an interest rate of 9% per annum. 50% of accrued interest is payable in cash on the last day of each month and the remaining 50% of accrued interest is payable, at the option of Indiva, (i) in cash on the last day of each month, or (ii) payable in arrears on the Maturity Date. The Term Loan was issued at an original issue discount of 4% and provides that upon a change of control of Indiva, Sundial shall have the option exercisable within 60 days to require Indiva to prepay 104% of the outstanding principal amount of the Term Loan and all accrued and unpaid interest.

Pursuant to the Investment, Sundial and Indiva entered into an investor rights agreement (the "IRA") whereby Sundial was granted the right to participate in future equity financings to maintain its pro-rata ownership in Indiva and registration rights, subject to customary limits and exceptions. In addition, the IRA provides that in the event Indiva completes a further offering of securities, which contain warrants, in the ninety (90) days following the closing of the Investment (a "Further Offering"), it shall issue to Sundial, for no additional consideration, and on the terms of such warrants offered in the Further Offering, such number of warrants equal to the number of warrants Sundial would have received had the Equity Investment been made in the Further Offering (the "Conditional Warrants"). Any issuance of Conditional Warrants is subject to the prior approval of the TSX Venture Exchange (the "TSXV") and if issued, will contain a provision preventing their exercise if, following such exercise, Sundial or its affiliates would hold greater than 19.9% of the issued and outstanding Common Shares and have a maximum term of five (5) years.

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Sundial and Indiva Announce Closing of $22 Million Strategic Investment Brokered Private Placement Offering of $11,000,000 and $11,000,000 Term Loan FacilityCALGARY, Alberta and LONDON, Ontario, Feb. 23, 2021 (GLOBE NEWSWIRE) - Sundial Growers Inc. ("Sundial") (NASDAQ: SNDL), a Canadian licensed producer of …

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