May 12, 2020

Sundial Provides Update on Senior Lender Discussions

Calgary, AB (May 12, 2020) – Sundial Growers Inc. (Nasdaq: SNDL) (“Sundial” or the “Company”) announced that the Company's senior lenders are assessing potential terms for a credit agreement amendment, including covenant amendments, that would improve the Company’s flexibility under its covenants. As previously announced, the Company received waivers and agreements related to defaults under its existing credit agreements on March 30, 2020 subject to completion of certain defined milestones by April 15, 2020. The deadline for those milestones was subsequently extended to April 30, 2020 and, then again to May 11, 2020. Those waivers and agreements expired May 11, 2020; however, the Company’s senior lenders have indicated that they do not intend to issue a notice of default at this time while in active discussions with respect to the contemplated credit agreement amendment.

In addition, the Company is in advanced stages of discussions for the potential sale of its Bridge Farm assets and restructuring of the related credit facility.

There is no guarantee that we will be able to consummate a sale of the Bridge Farm assets or a restructuring of the related credit facility. Furthermore, there is no guarantee that our senior lenders will agree to the contemplated credit agreement amendments, will grant additional waivers under the credit agreements or will refrain from issuing notices of default. Any failure or delay in completing these transactions or any acceleration of our outstanding debt would have a significant negative impact on the Company’s liquidity and further impact the Company’s ability to operate as a going concern. In such a case, the Company would look to alternative sources of financing, delay capital expenditures and/or evaluate potential asset sales, and potentially could be forced to curtail or cease operations or seek relief under the applicable bankruptcy or insolvency laws.

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Sundial Announces Extension of Credit Facility Waiver Agreements

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