Sundial Growers Inc. (NASDAQ: SNDL) disclosed that it has invested $22 million in Indiva, a Canadian manufacturer of cannabis edibles. Sundial is excited to help the making of the finest Indiva products. This deal extends the Sundial Growers experience to the fast-growing cannabis edibles category.

As per the strategic investment, Sundial will execute the financing in the form of a negotiated private arrangement of 25,000,000 common shares of Indiva for $0.44 per Common Share. This financing is headed by ATB Capital Markets Inc.

Furthermore, this financing will also increase the gross profit of $11,000,000, and a non-revolving term lending arrangement to Indiva in the principal sum of $11,000,000. It is predicted that the Indiva will get a profit of nearly $20.9 million. It also includes the total charges, commission, and other expenditures.

Indiva is planning to use the profit of the Placement and Term Loan to withdraw its due debt in full, which includes its demand loan and debt securities, as well as for working capital and other general business objectives. Indiva is confident that this financing will improve the balance sheet of the firm and also increase its working capital. This financing will also offer the firm the necessary resources to grow its business.

Sundial and Indiva both are planning to finalize the financing on or about February 23, 2021. The execution of the strategic financing is dependent on certain conditions including the receipt of all necessary authorization, plus the permission of the TSX Venture Exchange.

Indiva has also confirmed that it will pay the 3.0% of total profit it got from the Settlement from Sundial and 6.0% of the total gross profits got by Indiva from the Settlement from subscribers other than Sundial. Moreover, it will also give 2.0% of the payment to the Agent.