Canadian cannabis company Sundial Growers says it has put in a stalking horse bid to buy the assets of distressed Hexo Corp. subsidiary Zenabis Global, which filed for creditor protection last week.
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Calgary, Alberta-based Sundial did not disclose the value of the bid.
Sundial, which invested in Zenabis in December 2020 via a senior loan worth 58.9 million Canadian dollars ($45.6 million), said Monday that Zenabis still owed CA$51.9 million as of June 16.
Zenabis previously characterized Sundial’s actions related to that debt as “an attempt to coerce Zenabis into being acquired by Sundial” and subsequently agreed to be acquired by Hexo for CA$235 million.
According to a Monday news release, Sundial’s new bid for Zenabis’ assets covers:
The company’s European Union Good Manufacturing Practice (GMP)-certified indoor cultivation facility in Atholville, New Brunswick. “A decommissioned 255,000-square-foot indoor facility in Stellarton, Nova Scotia, that was used as
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