Sundial Growers (NASDAQ:SNDL) stock is heading higher on Wednesday after announcing the closing of a strategic investment.
Here’s everything investors in SNDL stock need to know about the news.
- Sundial Growers announced yesterday that it closed a $22 million strategic investment in Indiva.
- This includes a brokered private placement for 25 million shares of Indiva stock.
- It also covers $11 million in gross proceeds and an $11 million secured non-revolving term loan facility.
- This has Sundial Growers acting as the sole subscriber in the private placement and sole lender of the loans.
- The term loan issues by Sundial Growers has a maturity date of Feb. 23, 2024.
- It also includes an interest rate of 9% per annum.
- That’s payable via 50% in cash at the end of each month and 50% in cash at the end of each month or in arrears when the loan matures.
- The deal also includes an investor rights agreement for Sundial Growers.
- This allows it to take part in future equity financings so that it can maintain its pro-rata ownership in Indiva
- Social media chatter about the investment is also likely helping out boost SNDl stock up higher today.
- Many investors are taking to Twitter and other platforms to share news of the deal.
- This could be pulling in additional people that are taking out shares of the stock looking to make a profit.
SNDL stock was up 12.7% as of Wednesday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.