Sundial Growers Inc (SNDL)

[Patsfan217]

They bought a loan that pays 14% yearly and matured march 2025. They also get royalties which are listed below.


Pursuant to the terms of the Senior Loan, Zenabis will also pay Sundial a royalty (the "Royalty") based on quarterly sales revenue from its medical, recreational and wholesale cannabis lines net of value added or sales taxes ("Net Cannabis Revenue"), which will be payable each fiscal quarter as follows:

(i) 3.5% of Net Cannabis Revenue where Net Cannabis Revenue
does not exceed $25
million;
(ii) 3.0% of Net Cannabis Revenue where Net Cannabis Revenue
exceeds $25 million but
not $30 million;
(iii) 2.5% of Net Cannabis Revenue where Net Cannabis Revenue
exceeds $30 million but
not $37.5 million; and
(iv) 2.0% of Net Cannabis Revenue where Net Cannabis Revenue
exceeds $37.5 million.

The Royalty is payable for 32 fiscal quarters and is payable for quarters in which Zenabis accomplishes certain Net Cannabis Rvenue targets and maintains certain debt service ratios. If those targets are not met, the Royalty is not payable for the applicable fiscal quarter but the term of the Royalty is extended another fiscal quarter.