CALGARY, AB, June 20, 2022 /PRNewswire/ – PRESS RELEASE – Sundial Growers Inc. has announced that, in the context of the initial order pursuant to the Companies’ Creditors Arrangement Act (Canada) (CCAA) pertaining to the Zenabis Group (as defined below) rendered on June 17, 2022, it entered into a purchase agreement, in the form of a “stalking horse bid” (the “Bid Agreement”), pursuant to which the shares of Zenabis Global Inc. and the business and assets of its direct and indirectly wholly-owned subsidiaries (collectively, the “Zenabis Group”) would be acquired by Sundial. The Bid Agreement is subject to the approval by the Québec Superior Court supervising the CCAA Proceedings, and to potential alternative bids pursuant to bidding procedures that will follow. All amounts are denominated in Canadian dollars unless otherwise noted. Subject to the Court’s approval of the Bid Agreement and of bidding procedures that will be sought on July 5, 2022, the Bid Agreement will set the floor, or minimum acceptable bid, in a sale and investment solicitation process, which is designed to achieve the highest and best offer for the Zenabis Group’s business and assets and is under the supervision of Ernst & Young, acting as CCAA Monitor.
The assets covered by the Bid Agreement include the 380,000-square-foot indoor growing facility located in Atholville, New Brunswick with an annual production capacity of approximately 46,000 kgs of dried cannabis and 15,000 kgs of extraction capacity. The facility received EU GMP certification, providing a license to the facility to export internationally to