Canadian Cannabis Producer Sundial Growers Files $100 Million NASDAQ IPO Registration

Alberta-based licensed producer Sundial Growers has filed its IPO registration in an attempt to become the second Canadian LP to list solely on the NASDAQ, following Tilray’s (TLRY) listing a year ago. The proposed $100 million offering doesn’t yet have pricing information, but the company has reserved the ticker “SNDL”. Underwriters include Cowen, BMO and Barclays

The company, which received its license in June 2017, has three categories of products, “Heal, Help and Play” and grows a select number of strains that are marketed by characteristics and effects:

Earlier today, the company announced the acquisition in the UK of CBD-focused Bridge Farm Group, its first venture beyond Canada. According to the prospectus, Bridge generated sales of C$20.4 million over the ten months ending March 31st and C$9.1 million in Q1. Earlier this year it lined up a C$30 million credit facility with BMO and followed it up with a C$93 million convertible note offering in May.

Sundial reported its first sales in Q1, generating net revenue of C$1.5 million and adjusted EBITDA of -C$5.5 million. The company reported pro forma cash of almost C$29 million and pro forma equity of -C$106 million as of March 31st.

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Breaking News by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online communities 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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