Connect with us


Sundial Growers Inc (NASDAQ:SNDL) Inks An Equity Sale Accord With ATB Capital Markets And Canaccord Genuity To Raise Maximum Of $800 Million: Reports $13.9 Million In Revenues In Q4 2020



Sundial Growers Inc (NASDAQ:SNDL) inked a stock sale agreement with ATB Capital Markets and Canaccord Genuity agents. As per the deal’s terms, the company expects to raise a capital of up to $800 million. The agents will receive 3% of the gross proceeds of the capital.

Sundial reported an increase of 10% YoY in revenues to $73.3 million in 2020. Its revenues in Q4 2020 surged to $13.9 million (up 8% QoQ).

The company posted branded revenues of $11.4 million (up 15% QoQ) in Q4 2020. However, its unbranded sales declined to $2.4 million (down 18%) in Q4 2020.

Growing need for inhalable products

Recreational customers well accept sundial’s inhalable products. The company posted growth in recreational sales, comprising a majority of pre-rolls and dried flower, to $12 million in Q4 2020. Sundial reported a QoQ growth of 19% to $4.3 million from the sale of vape cartridges.

The average per-gram selling price for branded products declined to $4.14 in Q4 2020 from $5.53 in Q3 2020. It is on the backdrop of a shift of the consumers to value segments and supply condition-related compression.

Realigns operating model

Sundial realigned its operating model and achieved significant cost savings in 2020. As a result, its cash burn declined to $12.2 million (down 63% QoQ) in Q4 2020. It also lowered its G&A expenses to $32 million (down 18% QoQ) in Q4 2020 by reducing wages, salaries, and consulting fees.

Apart from financial discipline, Sundial improved investments in marketing, sales, and brands to $2.3 million (up 109% QoQ) in Q4 2020 to cater to consumers’ preferences.

The cultivation cost per gram in Q4 2020 declined to $1.11 (down 6% QoQ) by improving efficiency and cost-saving measures.

Sundial completed the cultivation facilities in early 2020. In H2 2020, the company completed the processing facilities.

To ensure consistent delivery of Top Leaf brand promise, Sundial improved its quality processes that comprise hand manicured and hand dried flower offerings. It also expects to unveil new cultivars in H2 2021 with the recent completion of R&D. To continue growth; the company also focuses on developing an innovative pipeline.

*Past performance is not a predictor of future results. All investing involves risk of loss and individual investments may vary. The examples provided may not be representative of typical results. Your capital is at risk when you invest – you can lose some or all of your money. Never risk more than you can afford to lose.By submitting your information you agree to the terms of our Privacy Policy • Cancel Newsletter Any Time.This is a FREE service from Finacials Trend. Signing up for our FREE daily e-letter also entitles you to receive this report. We will NOT share your email address with anyone.


Business1 week ago

NewAge Inc. (NASDAQ:NBEV) Expanding Its Operations In Europe As Lucim™ Gets Recognition As A Safe Skincare Product

Post Views: 358 NewAge Inc. (NASDAQ:NBEV) announced a record net revenue increase in Europe, record attendance at its virtual events,...

Business2 weeks ago

ILUS International Inc. (OTCMKTS:ILUS) Appoints New Marketing Director Dejana Radonjic To Help With Global Marketing

Post Views: 317 ILUS International Inc. (OTCMKTS:ILUS) seems more focused on making new acquisitions, with about two accomplished within its...

Business2 weeks ago

Conservative Broadcast Media Journalism (OTCMKTS:CBMJ) Reports Revenues Of $2.4 Million In 2020

Post Views: 389 Conservative Broadcast Media Journalism (OTCMKTS:CBMJ) posted a robust growth of 118% YoY to $2.4 million in 2020. Development...


Cannabics Pharmaceuticals (OTCMKTS:CNBX) Initiates RCC-33 Dose-Response Study, And Cresco Labs (OTCMKTS:CRLBF) Launches Wonder Wellness Gummies

Post Views: 357 Cannabics Pharmaceuticals (OTCMKTS:CNBX) has announced that it will initiate a Dose-Response in-vivo Study in mice whose data...


Curaleaf Holdings Inc. (OTCMKTS:CURLF) Rebrands And Opens New Locations In Pennsylvania And Illinois

Post Views: 397 Curaleaf Holdings Inc. (OTCMKTS:CURLF) has announced new Curaleaf branding for its recently acquired retail locations and the...

Business2 weeks ago

Generex Biotechnology Corp’s (OTCMKTS:GNBT) NuGenerex Immuno-Oncology Responds To FDA Regarding Its Paediatric-Focused COVID-19 Vaccine

Post Views: 367 Generex  Biotechnology Corp’s (OTCMKTS:GNBT) subsidiary NuGenerex Immuno-Oncology has announced the submission of a response to the FDA’s...