Sundial Announces Anticipated Closing Date of Alcanna Acquisition and Late Filing of Annual Financial Statements and MD&A under Canadian Law

CALGARY, AB, March 28, 2022 /CNW/ – Sundial Growers Inc. (NASDAQ: SNDL) (“Sundial” or the “Corporation“) today announced that it expects the earlier declared system of arrangement (the “Arrangement“) with Alcanna Inc. (“Alcanna“) to be finished on or about March 31, 2022. All regulatory prerequisites under relevant provincial liquor and cannabis legislation have now been happy and completion of the Arrangement remains issue only to customary closing conditions as additional explained in the Arrangement Agreement. Sundial and Alcanna have mutually agreed to extend the outside day for closing the transaction by just one working day to March 31, 2022.

Sundial Growers Symbol (CNW Team/Sundial Growers Inc.)

Fiscal Assertion Submitting Delay

The Firm also declared a hold off in filing its audited consolidated monetary statements for the year finished December 31, 2021, once-a-year management’s discussion and examination for the same period of time and management certifications of annual filings (collectively, the “Filings“) outside of the deadline of March 31, 2022 recommended by Canadian securities guidelines. Sundial expects to file its Once-a-year Report on Sort 20-F within just the relevant U.S. filing deadline. The Corporation now expects to report fourth quarter and total calendar year 2021 earnings on or just before April 14, 2022. Updated convention connect with aspects will be delivered in a subsequent announcement.

Primarily based on unaudited financial statements prepared by the management of the Organization, Sundial expects to report document adjusted EBITDA from continuing operations for the comprehensive calendar year 2021.

The principal motive for the hold off is the sizeable total of added work and in-depth techniques essential to be performed by the Enterprise and its exterior auditor as 2021 is the initially 12 months that the Firm is essential to have an auditor attestation report on its internal controls around monetary reporting beneath Section 404(b) of the Sarbanes-Oxley Act of 2002 (“SOX“). This necessity to be SOX compliant is a perform of the quick expansion in scale and amount of company exercise Sundial has reached in excess of the last two many years. SOX compliance involves heightened stages of corporate controls and procedures that will in the long run benefit Sundial shareholders by means of very best methods in risk management.

The Company’s auditor is completing its external audit and will be unable to issue an audit viewpoint ahead of the conclusion of March 2022 as earlier predicted. The Organization thinks that there will be no restatement of previously produced economical statements of Sundial.

The Corporation has knowledgeable the personnel of the Alberta Securities Fee (the “ASC“) about its predicted hold off of the Filings and has applied to the ASC pursuant to Part 4 of National Coverage 12-203 – Administration Stop Trade Orders (“NP 12-203“) for a Administration Cease Trade Order (“MCTO“) pending the release of the Filings. If an MCTO is issued, Sundial intends to fulfill the provisions of the “option data guidelines” set out in NP 12-203, which includes the need to file bi-weekly position experiences in the type of news releases made up of recommended updating info, right until the Filings are produced. An MCTO would not usually have an impact on the capacity of individuals who are not administrators, officers, or insiders of the Firm to trade in securities of the Firm.

Sundial’s blackout coverage has limited buying and selling by administrators, officers, and other insiders of the Firm for the overall calendar 12 months as a result far. The policy has also restricted the Firm’s skill to execute the repurchase of Sundial shares beneath its beforehand declared share repurchase system. The Enterprise expects the investing window to open subsequent to the filing of initial quarter economic outcomes in May possibly.

ABOUT SUNDIAL GROWERS INC.

Sundial is a general public company whose shares are traded on Nasdaq beneath the symbol “SNDL”. Its small business is documented and analyzed below 3 working segments: Hashish Functions, Cannabis Retail, and Investment decision Functions. Following completion of the Arrangement, Sundial expects to incorporate a fourth segment, Liquor Retail.

As a licensed producer that crafts modest-batch cannabis applying point out-of-the-art indoor amenities, Sundial’s ‘craft-at-scale’ modular growing tactic, award-successful genetics, and knowledgeable growers established us apart. Sundial’s manufacturer portfolio incorporates Top Leaf, Sundial Hashish, Palmetto, and Grasslands. Sundial also operates the Spiritleaf retail banner. Spiritleaf aims to be the most well-informed and trustworthy supply of leisure cannabis by presenting a top quality customer encounter and quality curated hashish goods.

Sundial’s expense functions seek to deploy strategic funds by way of immediate and oblique investments and partnerships all through the worldwide cannabis industry.

Sundial is proudly Albertan, headquartered in Calgary, Alberta, with functions in Olds and Rocky See County, Alberta, Canada. For far more data on Sundial, you should go to www.sndlgroup.com.

Ahead-Wanting Statements

Specified statements in this press launch represent “forward-searching” statements that require acknowledged and unfamiliar dangers, uncertainties and other variables which may perhaps trigger the true results, effectiveness, aims or achievements of Sundial or industry benefits, to be materially diverse from any long run effects, efficiency, aims or achievements expressed or implied by these forward-on the lookout statements. When used in this press launch, words and phrases these types of as “might”, “would”, “could”, “will”, “be expecting”, “foresee”, “estimate”, “imagine”, “intend”, “plan”, and other related expressions are meant to discover forward-wanting statements. Ahead-searching details in this news release features, but is not confined to, statements regarding: Sundial’s expectation that it w
ill file its Annual Report on Sort 20-F within just the applicable U.S. filing deadline and that it will report its fourth quarter and comprehensive calendar year 2021 earnings on or just before April 14, 2022 Sundial’s expectation that it will report record Modified EBTIDA from continuing functions for the 12 months finished December 31, 2021 and the expected closing date of the Arrangement. These statements replicate Sundial’s existing views pertaining to long term situations and operating performance, are centered on data now obtainable to Sundial, and converse only as of the date of this press launch. These ahead-looking statements require a quantity of hazards, uncertainties and assumptions and must not be read through as guarantees that long term effectiveness or outcomes will be attained. Quite a few aspects could bring about the genuine results, general performance, targets or achievements of Sundial to be materially distinctive from any foreseeable future effects, general performance, goals or achievements that could be expressed or implied by these kinds of forward-searching statements. The principal aspects, assumptions and risks that Sundial designed or took into account in the preparing of these forward-on the lookout statements incorporate: Sundial’s belief that its exterior auditor will total its audit and launch its audit viewpoint in a well timed method that will allow for Sundial to file its Yearly Report on Kind 20-F in the relevant U.S. submitting deadline, that the unaudited monetary statements well prepared by management of the Enterprise will not differ materially from audited monetary statements at the time accessible, and that all ailments to closing of the Arrangement will be pleased prior to the predicted closing day. Further things that might influence Sundial’s effects are mentioned in Sundial’s other publicly readily available disclosure paperwork, as filed by Sundial on EDGAR (www.sec.gov/edgar) and SEDAR (www.sedar.com). Really should 1 or extra of these pitfalls or uncertainties materialize, or really should assumptions underlying the ahead-on the lookout statements prove incorrect, actual final results may possibly vary materially from all those described in this push release as supposed, planned, predicted, thought, believed or predicted. The ahead-wanting facts contained in this news release is manufactured as of the date hereof. Except if needed by relevant securities legislation, Sundial does not intend and does not believe any obligation to update these ahead-on the lookout statements, no matter if as a final result of new info, long term situations or or else.