Sundial Growers IPO: What You Need To Know

Those investors who missed out on the huge run-ups in publicly traded cannabis stocks get another opportunity to partake in the booming market.

The IPO Terms

Calgary, Alberta-based Sundial Growers Inc. is planning to offer 10 million shares in an IPO, with the pricing of the offering estimated between $12 and $14 per share, a F-1/A filing revealed.

At the midpoint of the estimated price range, the size of the offering is $130 million.

The company has applied for listing its shares on the Nasdaq under the ticker symbol SNDL.

Cowen, BMO Capital Markets and RBC Capital Markets are the lead underwriters for the offering.

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The Company

Cannabis grower Sundial currently produces and markets premium cannabis for recreational use under the Sundial Cannabis brand in Canada. The company has been approved to supply cannabis directly to retailers by five provincial regulating authorities in Canada.

Sundial said it intends to offer products under its Top Leaf and BC Weed Co. brands, among others.

The company also said it plans to enter the CBD market through its acquisition of Bridge Farm, an indoor agricultural producer of edible herbs and ornamental flowers in the U.K. in July. Additionally, it has tie-ups with Canadian research institutions, as well as a joint venture with Pathway Rx to identify and develop cannabis strains for medicinal use.

Citing estimates by the U.N., Sundial said it estimates the global legal and illicit cannabis market to be $150 million, annually.

The Finances

Sundial has not reported revenues for the fiscal year ended Dec. 31, 2018 but recorded a loss of $56.53 million for the year.

For the three months ended March 31, 2019, the company reported net revenues of $1.50 million compared to no revenues in the year-ago quarter. The loss, however, widened from $7.15 million to $16.70 million.

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