Canadian cannabis company Sundial Growers Inc. (SNDL) said Wednesday it has closed the acquisition of a special purpose vehicle for C$58.9 million ($46 million) in cash, which it funded using its available cash reserves of C$110 million. The special purpose vehicle owns C$58.9 million of senior secured debt issued by Zenabis Investment Ltd, a unit of Zenabis Global Inc. The loan pays interest at a rate of 14% a year and matures on March 31, 2025. Zenabis will also pay Sundial a royalty based on quarterly sales from its medical, recreational and wholesale cannabis businesses. U.S.-listed shares of Sundial, which once had a $1 billion valuation, closed Tuesday at 46 cents.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
December 30, 2020 08:14 ET (13:14 GMT)
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