Canadian cannabis company Sundial acquires special purpose vehicle for about $86 million

Canadian cannabis company Sundial Growers Inc.
SNDL,
-3.04%
said Wednesday it has closed the acquisition of a special purpose vehicle for C$58.9 million in cash, which it funded using its available cash reserves of C$110 million ($86.1 million). The special purpose vehicle owns C$58.9 million of senior secured debt issued by Zenabis Investment Ltd, a unit of Zenabis Global Inc. The loan pays interest at a rate of 14% a year and matures on March 31, 2025. Zenabis will also pay Sundial a royalty based on quarterly sales from its medical, recreational and wholesale cannabis businesses. U.S.-listed shares of Sundial, which once had a $1 billion valuation, closed Tuesday at 46 cents.