Following the path laid out by Tilray
Sundial is a cannabis cultivator with agreements with five provincial regulators and will soon be entering the global CBD space following the acquisition of Bridge Farm, a company based in the United Kingdom. Collectively the firm currently has 60,000 KG of licensed capacity within the country, but the figure will be closer to 95,000 upon the final completion of facilities in Olds, Alberta, and Merritt, British Columbia.
According to the preliminary prospectus, Sundial generated net revenue of C$1.5 million in Q1 and the company reported pro forma cash of C$29 million. Bridge Farm generated C$20.4 million over the last ten months. The operation currently has a license to grow hemp indoors at its Spalding facility, which currently consists of 40,000 square feet.
“This is a significant acquisition for Sundial, taking us one step closer to our goal of being one of the leading cannabis companies in the world,” said Torsten Kuenzlen, Chief Executive Officer of Sundial, in the company press release. “We recognize that expedient global expansion requires a combination of organic growth and strategic acquisitions. Bridge Farm’s experienced management team, strong market position and operational excellence made it an ideal acquisition.”
Bridge Farm will also transition to growing cannabis pending regulatory approval, according to the prospectus. Clearly, one of the key advantages in purchasing Bridge Farms was that it gave Sundial immediate topline revenues. In addition, the facility in Spalding will expand to 3.8 million square-feet making it one of the largest fully-automated growing structures in Europe giving Sundial the chance to be one of the first movers at scale within the CBD wellness market.
“I am excited and confident that Sundial will continue to improve the operational excellence and the quality of the products grown in the Bridge Farm facilities,” said David Ball, Sundial’s President, Europe, in the same release. “There is a local, European and global demand for CBD and other cannabis products, which we are well positioned to supply. Sundial is poised to become a leader in the Help sector.”
The Calgary company was founded in 2006 and is known for three categories of products “Heal”, “Help” and “Play.” As stated above, Sundial is following the same path to market as Tilray who listed shares at $17 on Nasdaq and they are now trading above $45. Of course, Cronos Group Inc. was the first Canadian pot company to list on a U.S. Exchange, but its shares were already trading in Canada.
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