SNDL Renews Share Repurchase Program, SunStream Provides Additional Funding To SKYMINT
SNDL Inc. (NASDAQ:SNDL) announced that its board of directors has approved the renewal of the share repurchase program upon the expiry of its current share repurchase program on November 19, 2022. The share repurchase program authorizes the company to repurchase up to CA$100 million of its outstanding common shares from time to time at prevailing market prices, enabling SNDL to opportunistically return value to shareholders.
Notwithstanding the share repurchase amount, SNDL may only purchase a maximum of approximately 11.8 million shares under the share repurchase program, representing 5% of the issued and outstanding shares as at November 21, 2022. Subject to the foregoing limitations, the share repurchase program will commence on November 21, 2022, and will expire on November 20, 2023.
The actual number of shares which may be purchased pursuant to the share repurchase program and the timing of any purchases will be determined by management and the board of directors.
The price which the company will pay for any such shares will be the prevailing market price at the time of acquisition, subject to certain limitations imposed by applicable securities laws. All shares purchased pursuant to the share repurchase program will be returned to treasury for cancellation, and all such purchases will be made on the open market through the facilities of Nasdaq or by such other means as may be permitted under applicable securities laws during the term of the share repurchase program.
Under the company's current share repurchase program, which commenced on November 19, 2021, the company previously sought to repurchase up to CA$100 million or 10.28 million shares. As of November 15, 2022, the company had repurchased an aggregate of 1.88 million shares for cancellation under its current share repurchase program at a weighted average price of approximately CA$2.60 per share.
SunStream Bancorp Provides Follow-on Funding to SKYMINT
SunStream Opportunities LP, an affiliate of SunStream Bancorp Inc., a joint venture sponsored by SNDL Inc. closed a $6.25 million senior secured term loan follow-on financing to SKYMINT Brands.
The financing, made through Tropics LP, an affiliate of SunStream, increases the senior secured term loan principal amount advanced to SKYMINT to $81.25 million. The financing is the second follow-on senior secured term loan financing provided by SunStream to SKYMINT, the first being an incremental $5 million for general working capital purposes, made in May 2022. In September of 2021, SunStream advanced its initial senior secured term loan to Skymint in the amount of $70 million, in connection with SKYMINT's acquisition of 3Fifteen Cannabis. The use of funds of the financing will be for general working capital purposes, as SKYMINT finalizes the transfer of the remainder of the cannabis licenses acquired from 3Fifteen. With the acquisition of 3Fifteen, SKYMINT seeks to expand its retail footprint to 24 locations in Michigan.
Loans issued under the financing will bear interest at a rate of 12.5% to 16.5% per annum based on a leverage test and mature on September 17, 2025.
SunStream is a joint venture between SNDL and the SAF Group that leverages a strategic financial and operational partnership to target attractive risk-return opportunities in the cannabis industry in order to provide exposure to a portfolio of attractive investments. Over the last two years, SunStream has deployed over $400 million in loans to State licensed cannabis operators in the US, which include several multi-state operators.
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