CALGARY, AB, Nov. 11, 2021 /CNW/ - Sundial Growers Inc.
(NASDAQ: SNDL) ("Sundial" or the "Company") reported its financial
and operational results for the third quarter ended September 30, 2021. All financial information in
this press release is reported in millions of Canadian dollars and
represents results from continuing operations, unless otherwise
indicated.
The Company will hold a conference call and webcast at
10:30 a.m. EST (8:30 a.m. MST) on Friday,
November 12, 2021. Please see the dial-in details within the
release, as well as additional details on Sundial's website at
www.sndlgroup.com.
THIRD QUARTER 2021 OPERATIONAL AND INVESTMENT
HIGHLIGHTS
- Net earnings of $11.3 million for
the third quarter of 2021 compared to $71.4
million loss in the third quarter of the prior year.
- Adjusted EBITDA of $10.5 million
for the third quarter of 2021, compared to an adjusted EBITDA loss
of $4.4 million in the third quarter
of 2020.
- Net revenue from Cannabis segments of $14.4 million for the third quarter of 2021, an
increase of 57% over the second quarter of 2021 and an increase of
12% over the third quarter of 2020.
-
- Cannabis Cultivation and Production: Net revenue for the
cultivation and production of cannabis was $8.2 million compared to $9.2 million in the previous quarter, a decline
of 11%.
- Cannabis Retail: Net revenue for cannabis retail was
$6.1 million following the
acquisition of Inner Spirit Holdings Inc. ("Inner Spirit") and the
Spiritleaf retail network ("Spiritleaf") during the third
quarter.
- Gross margin from Cannabis segments was $1.8 million, including a loss of $1.9 million from cannabis cultivation and
production compared to a loss of $19.5
million from that segment in the third quarter of 2020.
- Investment and fee revenue of $3.3
million, realized gains on marketable securities of
$6.0 million and Sundial's share of
profit from equity accounted investees of $9.9 million for the third quarter of 2021
compared to Nil in the third quarter of the prior year, which
preceded the start of these activities.
- $1.1 billion of cash, marketable
securities and long-term investments at September 30, 2021, and $1.2 billion at November
9, 2021, with $571 million of
unrestricted cash and no outstanding debt.
- Acquired Inner Spirit on July 20,
2021 and entered into an agreement to acquire Alcanna Inc.
("Alcanna'), Canada's largest
private liquor retailer, operating 171 locations, on October 7, 2021, subsequent to the end of the
third quarter.
"Our third quarter results reflect the initial impact of the
business transformation led by Sundial's team over the last 10
months," said Zach George, Chief
Executive Officer of Sundial. "We remain focused on sustainable
profitability and continued improvement in all aspects of our
operations. Despite the ongoing challenges facing industry
participants, our financial condition has never been stronger.
Sundial is uniquely positioned relative to its peers as we seek to
delight consumers and become a trusted industry partner. Our
balance sheet strength enables our team to avoid short term
pressures while working to improve the quality of our decision
making. We expect that the achievement of our objectives will
result in an aggregate base business that generates free cash flow
in 2022."
THIRD QUARTER 2021 KEY FINANCIAL METRICS
OPERATING
SEGMENTS
|
|
---------Cannabis---------
|
|
|
|
|
|
|
($000s)
|
|
Cultivation
and Production
|
|
Retail
|
|
Investment
|
|
Corporate
|
|
Total
|
As at
September 30, 2021
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
174,578
|
|
166,955
|
|
1,109,840
|
|
2,998
|
|
1,454,371
|
Nine months ended
September 30, 2021
|
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
|
27,269
|
|
6,140
|
|
6,756
|
|
—
|
|
40,165
|
Gross
margin
|
|
(8,149)
|
|
3,658
|
|
6,756
|
|
—
|
|
2,265
|
Share of profit of
equity-accounted investees
|
|
—
|
|
—
|
|
13,642
|
|
—
|
|
13,642
|
Depreciation and
amortization
|
|
2,442
|
|
1,463
|
|
—
|
|
469
|
|
4,374
|
Earnings (loss)
before tax
|
|
(94,800)
|
|
(476)
|
|
17,339
|
|
(107,542)
|
|
(185,479)
|
Three months ended
September 30, 2021
|
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
|
8,227
|
|
6,140
|
|
(14,699)
|
|
—
|
|
(332)
|
Gross
margin
|
|
(1,876)
|
|
3,658
|
|
(14,699)
|
|
—
|
|
(12,917)
|
Share of profit of
equity-accounted investees
|
|
—
|
|
—
|
|
9,918
|
|
—
|
|
9,918
|
Depreciation and
amortization
|
|
660
|
|
1,463
|
|
—
|
|
262
|
|
2,385
|
Earnings (loss)
before tax
|
|
(10,177)
|
|
(476)
|
|
(6,012)
|
|
17,918
|
|
1,253
|
Sundial reports three operating segments including two Cannabis
segments: Cultivation and production, and retail, which was added
with the acquisition of Inner Spirit. The third segment is
Investments. For the three and nine months ended September 30, 2020, Cannabis was the only
reportable segment, and therefore no comparative segment
information is available for the Investment or retail segments.
- Asset value per share at September 30,
2021, including cash, loans, marketable securities and the
Olds facility at net book value was approximately $1.4 billion or $0.70 per share (US$1.1
billion or US$0.55 per
share).
- As of September 30, 2021 and
November 9, 2021, the Company had an
unrestricted cash balance of approximately $629 million and $571
million, respectively, and total common shares outstanding
of 2.1 billion and 2.1 billion, respectively.
ALCANNA ACQUISITION
On October 7, 2021, the Company
announced that it had entered into an arrangement agreement with
Alcanna pursuant to which the Company will acquire all of the
issued and outstanding common shares of Alcanna by way of a
statutory plan of arrangement for total consideration of 387.3
million common shares of Sundial, with a value of approximately
$346 million (the "Alcanna
Acquisition"). The Alcanna Acquisition is expected to close in the
fourth quarter of 2021, subject to customary closing conditions.
Alcanna's longstanding liquor business provides Sundial with stable
cash generation through a mature and proven business model with
trailing twelve months free cash flow of $16.4 million on
a built-out retail platform.
Alcanna is a Canadian liquor retailer, operating predominantly
in Alberta under its three retail
brands, "Wine and Beyond", "Liquor Depot" and "Ace Liquor". Alcanna
also holds an approximate 63% equity interest in Nova Cannabis
Inc., a Canadian cannabis retailer operating stores across
Alberta, Saskatchewan, and Ontario.
THIRD QUARTER 2021 RESULTS
CANNABIS RESULTS
The Company's Cannabis operations are comprised of two segments:
cannabis cultivation and production and, with the acquisition of
Inner Spirit, cannabis retail.
CANNABIS CULTIVATION AND PRODUCTION
Sundial remains focused and committed to optimization of its
cultivation and processing activities.
- Sundial's ongoing investments in innovation and cultivation
practices generated continued crop yield stability in the third
quarter of 2021 with results at 51 grams per square foot versus 49
grams per square foot in third quarter of 2020.
- Sundial continues to achieve higher weighted average THC
potency reaching its highest percentage results in the third
quarter of 2021, validating the Company's efforts and improvements
in cultivation.
- Sundial launched its newest product innovation, Caviar Cones,
in the third quarter of 2021 under the award-winning Top Leaf
brand. This launch, the first of its kind in Canada, reinforces Sundial's focused
innovation pipeline of premium inhalables in the Canadian cannabis
market. In the first four weeks after launch, the Top Leaf
Forbidden Lemon Caviar Cone was the top-selling Pre-Roll SKU in
all Spiritleaf stores in
Alberta, Saskatchewan, and Manitoba (initial launch
provinces).
- Sundial's premium portfolio remains well positioned to focus on
the higher margin inhalables segment. The Company grew share
of premium flower despite a purposeful portfolio rationalization
reducing its assortment by almost 80% and focusing on higher
potency and quality flower in the third quarter of 2021 under Top
Leaf.
GROSS MARGIN BEFORE FAIR VALUE ADJUSTMENTS
Gross
margin before fair value adjustments from cannabis cultivation and
production for the three months ended September 30, 2021 was
negative $4.9 million compared to
negative $17.3 million for the three
months ended September 30, 2020. The increase of $12.4 million was due to a lower inventory
obsolescence provision compared to the prior period as well as
Sundial's ongoing focus on cost optimization, reduction of harvest
inventory subject to impairment and offering the most competitive
and profitable strains and brands to its customers against the
backdrop of industry-wide price compression and high relative
operating costs at our premium facility.
NET REVENUE FROM CULTIVATION AND PRODUCTION
Net
revenue from cultivation and production operations in the third
quarter of 2021 was $8.2 million
compared to $12.9 million in the
third quarter of 2020, reflecting the Company's continuing shift to
branded sales from wholesales.
GROSS SELLING PRICE
Average gross selling price was
$3.23 per gram in the third quarter
of 2021, compared to $2.67 per gram
in the third quarter of 2020. The increase of $0.56 per gram equivalent was mainly due to an
increase in prices for sales to other LPs, partially offset by
lower prices for provincial board sales. Average gross selling
price per gram equivalent of branded products, net of provisions,
was $3.31 per gram in the third
quarter of 2021, compared to $3.19
per gram in the second quarter of 2021.
REVENUE BY FORMATS
In the third quarter of 2021 gross
revenue from Sundial's formats was:
|
|
Three months
ended
September 30
|
|
Nine months
ended
September 30
|
($000s)
|
|
2021
|
2020
|
|
2021
|
|
2020
|
Revenue from dried
flower
|
|
|
9,273
|
|
11,629
|
|
|
28,763
|
|
|
39,443
|
Revenue from
vapes
|
|
|
1,166
|
|
3,577
|
|
|
3,863
|
|
|
14,185
|
Revenue from
oil
|
|
|
37
|
|
319
|
|
|
1,628
|
|
|
2,828
|
Revenue from edibles
and concentrates
|
|
|
546
|
|
—
|
|
|
1,255
|
|
|
—
|
Gross
revenue
|
|
|
11,022
|
|
15,525
|
|
|
35,509
|
|
|
56,456
|
As the cannabis industry continues to be faced by challenges and
price compression in all segments, Sundial's revenue by formats for
the third quarter of 2021 has declined compared to the third
quarter of 2020. Due to a purposeful portfolio rationalization in
Sundial's vape segment along with continued price pressure, Sundial
has seen a decrease in gross revenue in the third quarter of
2021.
CANNABIS RETAIL
Sundial completed its acquisition of Inner Spirit on
July 20, 2021. As a result, this is
the first quarter that the Company's consolidated financial results
include Inner Spirit.
- Gross revenue for the period from July
20, 2021, to September 30,
2021, was $6.1 million.
Cannabis retail revenue is comprised $3.9
million of retail cannabis sales to consumers at
corporate-owned Spiritleaf retail cannabis stores and $2.2 million of franchise revenue, which
represents royalty revenue, advertising revenue and franchise
fees.
- System-wide retail sales1 were $33.5 million
from July 20, 2021 to September 30, 2021and $47.1 million for the full third quarter, a
record for the Spiritleaf retail network, generating approximately
$2.2 million of franchise royalty and
fee income for Sundial. System-wide retail sales represent the
aggregate revenue earned by franchised Spiritleaf retail cannabis
stores and corporate-owned Spiritleaf retail cannabis stores, and
do not represent revenues that accrue to the Company. The Company
receives all revenues from corporate-owned Spiritleaf retail
cannabis stores, as well as royalties and advertising fees in
respect of the franchised Spiritleaf retail cannabis store revenue
forming part of the system-wide retail sales.
- A total of 14 Spiritleaf stores have been opened since
July 2021. As of November 9, 2021, the store count is at 109.
- As Sundial further develops and optimizes its store network
in Canada, the Company has launched a multi-store pilot
program to improve the consumer experience through assortment,
price and engagement to meet the diverse needs of Canadian cannabis
consumers.
- Sundial implemented a Spiritleaf Franchisee Advisory Council to
further engage Spiritleaf franchisees and to obtain feedback and
collaboration on strategic initiatives to drive the continued
growth and success of the Spiritleaf banner.
__________
|
1
System-wide retail sales is a non-IFRS financial measure. For more
details, see the "Non-IFRS Financial Measures" section
below.
|
GROSS MARGIN
Gross margin for the period July 20 to September 30, 2021, was $3.7 million.
INVESTMENTS
Sundial's investment income is classified as income from
operations.
- During the nine months ended September
30, 2021, the Company deployed a portion of its available
capital into several cannabis-related investments totaling
$489 million, including $323 million to the SunStream Bancorp Inc. joint
venture ("SunStream"). In the third quarter of 2021 $181 million was directed to these investments,
including $135 million to SunStream.
Investment operations generated $19.2
million in investment income in the third quarter, including
interest, fees and realized gains on marketable securities.
- In the third quarter of 2021, the Company's portfolio of
credit-related investments generated an annualized rate of return
of 13%. At November 9, 2021, the
Company had an unrestricted cash balance of $571 million and remained debt free.
REVENUE FROM INVESTMENTS
Revenue from Investments in the third quarter of 2021 was
negative $4.8 million including
unrealized losses on marketable securities, due to fluctuation in
share prices from our portfolio of investments.
|
Three months
ended
September 30
|
|
Nine months
ended
September 30
|
($000s)
|
2021
|
2020
|
2021
|
2020
|
Interest and fee
revenue
|
|
|
|
|
|
|
|
|
Interest revenue from
investments at amortized cost
|
|
352
|
|
—
|
|
793
|
|
—
|
Interest and fee
revenue from investments at Fair Value Through Profit or
Loss
|
|
2,116
|
|
—
|
|
6,398
|
|
—
|
Interest revenue from
cash
|
|
841
|
|
—
|
|
2,311
|
|
—
|
|
|
3,309
|
|
—
|
|
9,502
|
|
—
|
Investment
revenue
|
|
|
|
|
|
|
|
|
Realized
gains
|
|
5,988
|
|
—
|
|
18,218
|
|
—
|
Unrealized gains
(losses)
|
|
(23,996)
|
|
—
|
|
(20,964)
|
|
—
|
|
|
(18,008)
|
|
—
|
|
(2,746)
|
|
—
|
Revenue from direct
investments
|
|
(14,699)
|
|
—
|
|
6,756
|
|
—
|
Share of profit of
equity-accounted investees
|
|
9,918
|
|
—
|
|
13,642
|
|
—
|
Total investment
activities
|
|
(4,781)
|
|
—
|
|
20,398
|
|
—
|
CONSOLIDATED FINANCIAL RESULTS
SALES, MARKETING AND GENERAL AND ADMINISTRATIVE
EXPENSES
SMG&A costs increased by 30% from $8.3 million to $10.8
million in the third quarter of 2021 when compared to the
third quarter of 2020. The increase was mainly due to increased
employee-related costs, and inclusion of Spiritleaf results
subsequent to its acquisition.
NET EARNINGS
Net earnings for the three months ended
September 30, 2021 were $11.3 million compared to a net loss of
$71.4 million in the previous
year.
ADJUSTED EBITDA FROM CONTINUING OPERATIONS
Adjusted EBITDA from continuing operations was $10.5 million for the three months ended
September 30, 2021 compared to a loss of $4.4 million for the three months ended
September 30, 2020.2 The increase was due to the
following:
- Increase in net revenue including Spiritleaf;
- Interest and fee revenue;
- Realized gains on investments; and
- Share of profit of equity-accounted investees.
__________
|
2 Adjusted
EBIDTA is a non-IFRS financial measures. For more details, see the
"Non-IFRS Financial Measures" section below.
|
STRATEGIC AND ORGANIZATIONAL UPDATE
Sundial remains focused on building long-term shareholder value
through the accretive deployment of cash resources and on achieving
sustainable profitability through a streamlined and right-sized
operating structure, and on enhanced offering of high-quality
brands.
CANNABIS
- Sundial continues to focus on the development of inhalable
formats through new and unique strains, differentiated product
formats and improved efficiencies in manufacturing methods.
Sundial's balance sheet strength allows the Company to position
itself for the normalization of market conditions that is expected
to evolve over the next few years, without pursuing short term
market share and unsustainable margins at all costs.
- In the third quarter of 2021, the Company continued to focus on
cost control and streamlining all its operations from cultivation,
to supply chain, to sales to achieve the efficiencies of vertical
integration.
- Sundial continues the Inner Spirit post-acquisition integration
work.
- The Company expects to onboard a new Vice President of Supply
Chain leader this month to support Sundial's continued efforts in
the optimization of its supply chain efforts and ensure all
decisions reflect the current state of the dynamic
industry.
INVESTMENTS
- Sundial remains focused on gaining risk-managed exposure to the
global cannabis industry that is expected to reach US$47 billion by 2025.
- The Company continues to evaluate numerous potential investment
opportunities in the cannabis industry, including structured credit
arrangements and equity and option investments as well as mergers
and acquisitions.
COVID-19 UPDATE
The Company continues to monitor daily developments in the
COVID-19 pandemic and actions taken by government authorities. In
accordance with the guidance of provincial and federal health
officials to limit the risk and transmission of
COVID-19, Sundial continues to implement mandatory
self-quarantine policies, travel restrictions, enhanced cleaning
and sanitation processes and frequency, safety shields at its
retail outlets and social distancing measures.
Sundial believes that it has maintained and can maintain safe
operations with these pandemic-related procedures and protocols in
place. The Company has not experienced a material impact
on its production and processing activities to date related to
COVID-19.
NON-IFRS MEASURES
Certain financial measures in this news release, including
adjusted EBITDA from continuing operations, gross margin before
fair value adjustments, and system-wide retail sales are non-IFRS
measures. These terms are not defined by IFRS and, therefore, may
not be comparable to similar measures provided by other companies.
These non-IFRS financial measures should not be considered in
isolation or as an alternative for measures of performance prepared
in accordance with IFRS.
ADJUSTED EBITDA FROM CONTINUING OPERATIONS
Adjusted EBITDA from continuing operations is a non-IFRS
measure which the Company uses to evaluate its operating
performance. Adjusted EBITDA from continuing operations
provides information to investors, analysts and
others to aid in understanding and evaluating the
Company's operating results in a similar manner to its
management team. Adjusted EBITDA from continuing operations is
defined as net income (loss) from continuing operations before
finance costs, depreciation and amortization, accretion expense,
income tax recovery and excluding change in fair value of
biological assets, change in fair value realized through inventory,
unrealized foreign exchange gains or losses, unrealized gains or
losses on marketable securities, change in fair value of derivative
warrants, share-based compensation expense, asset impairment,
gain or loss on disposal of property, plant and equipment and
certain one-time non-operating expenses, as determined by
management.
($000s except
percentages)
|
Q3 2021
|
Q2 2021
|
% Change
|
Q3 2020
|
% Change
|
Net income (loss)
from continuing operations
|
|
11,311
|
(52,287)
|
122%
|
(71,397)
|
116%
|
Adjustments
|
|
|
|
|
|
|
Finance
costs
|
|
135
|
40
|
238%
|
(8,139)
|
102%
|
Change in estimate of
fair value of derivative warrants
|
|
(24,100)
|
(19,810)
|
-22%
|
(10,058)
|
-140%
|
Depreciation and
amortization
|
|
2,385
|
931
|
156%
|
1,480
|
61%
|
Income tax
recovery
|
|
(10,058)
|
—
|
100%
|
—
|
100%
|
Change in fair value
of biological assets
|
|
(2,975)
|
331
|
999%
|
(194)
|
-1434%
|
Change in fair value
realized through inventory
|
|
(15)
|
456
|
103%
|
2,447
|
101%
|
Unrealized foreign
exchange (gain) loss
|
|
(2,071)
|
104
|
2091%
|
(243)
|
-752%
|
Unrealized (gain) loss
on marketable securities
|
|
23,996
|
1,849
|
1198%
|
—
|
100%
|
Share-based
compensation
|
|
1,869
|
4,539
|
-59%
|
3,118
|
-40%
|
Asset
impairment
|
|
—
|
60,000
|
-100%
|
60,000
|
-100%
|
Loss (gain) on
disposition of PP&E
|
|
—
|
22
|
-100%
|
—
|
0%
|
Cost of sales non-cash
component (1)
|
|
915
|
1,162
|
-21%
|
1,289
|
-29%
|
Inventory
obsolescence
|
|
3,871
|
1,651
|
134%
|
19,897
|
-81%
|
Restructuring
costs
|
|
—
|
—
|
0%
|
1,108
|
-100%
|
Transaction costs
(2)
|
|
5,276
|
805
|
555%
|
364
|
1349%
|
Government
subsidies
|
|
—
|
—
|
0%
|
(4,081)
|
-100%
|
Other
expenses
|
|
—
|
2
|
-100%
|
—
|
0%
|
Adjusted EBITDA
from continuing operations
|
|
10,539
|
(205)
|
5241%
|
(4,409)
|
339%
|
(1) Cost of sales
non-cash component is comprised of depreciation expense
|
(2) Transaction costs
relate to financing activities
|
($000s except
percentages)
|
YTD 2021
|
YTD 2020
|
% Change
|
Net loss from
continuing operations
|
(175,421)
|
(142,173)
|
-23%
|
Adjustments
|
|
|
|
Finance
costs
|
226
|
(1,155)
|
120%
|
Change in estimate of
fair value of derivative warrants
|
86,034
|
(10,469)
|
922%
|
Depreciation and
amortization
|
4,374
|
3,414
|
28%
|
Income tax
recovery
|
(10,058)
|
—
|
100%
|
Change in fair value
of biological assets
|
(2,550)
|
(4,853)
|
47%
|
Change in fair value
realized through inventory
|
491
|
18,352
|
-97%
|
Unrealized foreign
exchange (gain) loss
|
(62)
|
(1,429)
|
96%
|
Unrealized (gain) loss
on marketable securities
|
20,964
|
—
|
100%
|
Share-based
compensation
|
9,864
|
7,065
|
40%
|
Asset
impairment
|
60,000
|
65,659
|
-9%
|
Loss (gain) on
disposition of PP&E
|
139
|
(488)
|
128%
|
Cost of sales non-cash
component (1)
|
2,903
|
3,618
|
-20%
|
Inventory
obsolescence
|
7,276
|
37,638
|
-81%
|
Restructuring
costs
|
—
|
6,190
|
-100%
|
Transaction costs
(2)
|
9,729
|
2,762
|
252%
|
Government
subsidies
|
(2,180)
|
(4,081)
|
47%
|
Other
expenses
|
1,932
|
—
|
100%
|
Adjusted EBITDA
from continuing operations
|
13,661
|
(19,950)
|
168%
|
(1) Cost of sales
non-cash component is comprised of depreciation expense
|
(2) Transaction costs
relate to financing activities
|
SYSTEM-WIDE RETAIL SALES
System-wide retail sales is a non-IFRS measure which the Company
uses to evaluate the performance of its retail operations.
System-wide retail sales represent the aggregate revenue
earned by franchised Spiritleaf retail cannabis stores and
corporate-owned Spiritleaf retail cannabis stores, and do not
represent revenues that accrue to the Company. The Company receives
all revenues from corporate-owned Spiritleaf retail cannabis
stores, as well as royalties and advertising fees in respect of the
franchised Spiritleaf retail cannabis store revenue forming part of
the system-wide retail sales.
|
|
Three months
ended
September 30
|
|
($000s)
|
|
|
|
2021
|
|
Gross
revenue
|
|
|
|
|
6,140
|
|
Less:
|
|
|
|
|
|
|
Royalties
|
|
|
|
|
1,684
|
|
Advertising
|
|
|
|
|
371
|
|
Millwork
|
|
|
|
|
212
|
|
Franchise
fee
|
|
|
|
|
142
|
|
Supply
|
|
|
|
|
446
|
|
Add back:
|
|
|
|
|
|
|
Franchise store
sales
|
|
|
|
|
30,264
|
|
System-wide retail
sales (1)
|
|
|
|
|
33,549
|
|
CONFERENCE CALL
Sundial will host a conference call and webcast at 10:30 a.m.
EST (8:30 a.m. MST) on Friday, November 12, 2021. A current
investor presentation will be available on
http://sndlgroup.com/investors.
WEBCAST ACCESS
To access the live webcast of the call, please visit the
following link:
http://services.choruscall.ca/links/sundialgrowers20211112.html
REPLAY
The webcast archive will be available for three months via the
link provided above.
A telephone replay will be available for one month. To access the
replay dial:
Canada/USA Toll Free: 1-800-319-6413 or International
Toll: +1-604-638-9010
When prompted, enter Replay Access Code: 8057#
ABOUT SUNDIAL GROWERS INC.
Sundial is a public company with Common Shares traded on Nasdaq
under the symbol "SNDL". Our business is reported and analyzed
under three operating segments: Cannabis Operations, Cannabis
Retail and Investments.
As a licensed producer that crafts small-batch cannabis using
state-of-the-art indoor facilities, our '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.
Our investment operations seek to deploy strategic capital
through direct and indirect investments and partnerships throughout
the global cannabis industry.
We are 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 Cautionary
Statement
This news release includes statements containing certain
"forward-looking information" within the meaning of applicable
securities law ("forward-looking statements"), including, but not
limited to, statements regarding the Company's cost-cutting
initiatives, the cost savings expected to be achieved, operational
goals, demand for the Company's products, the Company's ability to
achieve profitability, the development of the legal cannabis
market, performance of the Company's investments and the
maintenance of production levels, including during the COVID-19
pandemic. 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 "Item
3D Risk Factors" in the Company's Annual Report on Form
20-F, which was filed with the Securities and Exchange Commission
("SEC") on March 17, 2021, and the
risk factors included in our other SEC filings for a
discussion of the material risk factors 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.