SunStream Bancorp Provides Follow-on Funding to SKYMINT

<br /> SunStream Bancorp Provides Follow-on Funding to SKYMINT<br />

Canada NewsWire

CALGARY, AB

,

Nov. 15, 2022

/CNW/ – SunStream Opportunities LP (“SunStream”), an affiliate of SunStream Bancorp Inc., a joint venture sponsored by SNDL Inc. (Nasdaq: SNDL) (“SNDL”), today announced the closing of a

US$6.25M

senior secured term loan (“Senior Secured Term Loan”) follow-on financing (the “Financing”) to SKYMINT Brands (“SKYMINT”).

The Financing, made through Tropics LP, an affiliate of SunStream, increases the Senior Secured Term Loan principal amount advanced to SKYMINT to

US$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

US$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

US$70 million

, in connection with SKYMINT’s acquisition of 3Fifteen Cannabis (“3Fifteen”). 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

, believed to be one of the largest cannabis retail footprints in the state.

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

US$400 million

in loans to State licensed cannabis operators in the US, which include several multi-state operators.

ABOUT SNDL INC.

SNDL is a public company whose shares are traded on Nasdaq under the symbol “SNDL.”

SNDL is the largest private sector liquor and cannabis retailer in

Canada

with retail banners that include

Ace Liquor

,

Wine and Beyond

,

Liquor Depot

,

Value Buds

, and

Spiritleaf

. SNDL is a licensed cannabis producer that uses state-of-the-art indoor facilities to supply wholesale and retail customers under a cannabis brand portfolio that includes

Top Leaf

,

Sundial Cannabis

,

Palmetto

,

Spiritleaf Selects

,

Re-Up

,

Namaste

,

Value Buds

and

Grasslands

. SNDL’s investment portfolio seeks to deploy strategic capital through direct and indirect investments and partnerships throughout the global cannabis industry.