Canadian cannabis company Sundial Growers loss widens, seeks to restructure credit facilities

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Canadian cannabis company Sundial Growers Inc. said late Monday it had a net loss of C$145.1 million ($101.9 million), or C$1.36 a share, in the fourth quarter, wider than the C$56.5 million loss, or 82 cents a share, reported in the year-earlier period. Revenue came to $21.6 million, the company said, without providing a year-earlier number. There are two few FactSet estimates to form a reliable consensus. Chief Executive Zach George acknowledged the company had faced a number of internal and external challenges in the year, “including operational difficulties, excess leverage, poor cost controls, a loss of focus on our core value proposition, regulatory delays, and rapidly evolving industry conditions,” he said in a statement. “These combined factors led to fourth quarter results that were below our expectations.” The company is now negotiating with creditors to restructure its credit facilities after breaching certain covenants, is reviewing its portfolio with a view to determine the economic viability of each initiative and will update investors with its first-quarter earnings release. The company will also require additional financing in the near term and has engaged advisers to help tap sources of debt or equity, he said. “These negotiations have been negatively impacted by the effects that the COVID-19 pandemic is having, and is expected to continue to have, on the overall business environment and financial markets generally,” said the company. Shares were not active premarket, but have fallen 68% in the year to date, while the S&P 500 has fallen 19%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.