Cannabis SPAC Greenrose's Shares Soar On $103M Debt Capital Agreement With Sundial Affiliate

Cannabis-focused special purpose acquisition company Greenrose Acquisition Corp. (OTC: GNRSU) announced Thursday that it has signed agreements for up to $103 million in capital from SunStream Bancorp a joint venture backed by Sundial Growers Inc. SNDL.  

SunStream’s investment consists of $78 million in a multi-tranche senior secured loan facility and $35 million in unsecured convertible notes. Details about the loan terms will be revealed in the subsequent filing with the U.S. Securities and Exchange Commission.

Upon finalizing SunStream financing and presuming no redemptions of Greenrose shareholders, the company will have $276 million in total to support its business strategy. What’s more the company continues to hold the right to raise extra capital via private placements.

The closing of the SunStream financing should happen at the same time as the closing of Greenrose’s de-SPAC business combination.

 “We are grateful for the support of our lenders and investors as we continue to work towards closing our business combination,” said Mickey Harley, CEO of Greenrose Acquisition Corp. “This additional capital gives us greater flexibility to execute on our growth objectives, and we will remain focused on creating value for our shareholders as we transition to an exciting and dynamic operating company. Importantly, this investment from and partnership with SunStream is both financially and strategically advantageous to Greenrose. Both Greenrose and SunStream are aligned in closing our Business Combination and continuing the growth of Greenrose,” Harley concluded.

Imperial Capital, LLC acted as capital markets advisor and Gateway Group as 

communications advisor to Greenrose. 

Mackenzie Partners and Broadridge Financial Solutions were proxy advisors to Greenrose in relation to its proxy solicitation efforts.

Price Action 

Greenrose’s shares were trading 0.10% higher at $10.01 per share at the time of writing Thursday mid-afternoon. 

Photo: Courtesy of Diyahna Lewis on Unsplash