CALGARY, Jan. 30, 2020 /CNW/ - Sundial Growers Inc.
(Nasdaq: SNDL) ("Sundial" or "the Company") announces certain
changes to its executive team and board of directors (the "Board")
as described below.
Board of Directors and Executive Team Changes
- Torsten Kuenzlen has resigned as the Company's Chief Executive
Officer ("CEO") and will step down as a director, effective
immediately, to pursue other interests;
- Zach George, currently a member
of Sundial's Board, has been appointed as CEO and will continue as
a director;
- Ted Hellard has stepped down
from his role as Executive Chairman, but will continue to serve on
the Board, and as Chair of the Mergers and Acquisitions
Committee;
- Brian Harriman, Sundial's Chief
Operating Officer ("COO"), will be leaving Sundial and his
portfolio will be transitioned to Andrew
Stordeur; and,
- Andrew Stordeur, currently
President of Sundial's Canadian operations, will be appointed as
President and COO in recognition of his expanded role.
Sundial is committed to continuing to implement strong corporate
governance practices throughout the organization. In addition, the
Board will continue to evaluate future opportunities to further
strengthen the Company and position it for long-term growth and
value creation. Sundial's management team is committed to the
long-term success of the Company and has the extensive operational,
marketing and business experience needed to maintain its position
as a leader in the industry.
Greg Mills, Chairman of the
Board, said, "We are extremely fortunate to have Mr. George join us
as CEO. His successful track record for effecting corporate change
through increased efficiency and operational improvements, along
with his capital markets experience, will help drive the next
chapter for Sundial. We are also pleased to announce the promotion
of Andrew Stordeur to President and
COO. His leadership and strong background in the consumer-packaged
goods sector are critical to Sundial and his promotion furthers our
efforts to streamline the organization."
"I look forward to working with the management team at Sundial,"
said Zach George, Sundial's incoming
CEO. "Sundial's talent, state-of-the-art facilities and disciplined
consumer product focus will be the drivers of its future success.
As the market evolves, these attributes, along with our flexible
operating structure, position us for long-term growth and
sustainable value creation for our shareholders."
Further details on Mr. George's and Mr. Stordeur's experience
can be found below.
Optimization Initiatives
In response to slower than
expected regulatory approvals of new stores and delays in some
cannabis 2.0 products, Sundial has implemented several streamlining
and efficiency initiatives to position the Company for long-term,
sustainable growth. These initiatives include enhancement of
facility workflows and processes, realignment of product lines and
product formats to areas of stronger demand, workforce optimization
and a heightened discipline in cost management. While industry
delays adversely impact Sundial's operations in the short term, the
Company expects to see a resumption of strong growth across the
industry when the regulatory bottlenecks are removed and approvals
for new products are granted.
The efficiency improvements and cost-cutting initiatives are
expected to result in an annualized cost savings of approximately
CAD$10-15 million for fiscal 2020. A
substantial portion of these initiatives have been implemented,
with cost reductions expected to be realized beginning in the first
quarter of 2020. As part of the leadership team's focus on improved
efficiency, cost management and long-term sustainability, the
Company will continue to monitor operations to ensure it remains
responsive in the current environment.
Sundial is committed to providing the highest quality products
with processes and practices that meet or exceed the regulatory
requirements. The Company does not expect its production levels to
be affected by these changes.
Executive Biographies
Zachary George
Mr. George brings a wealth of experience to Sundial, having spent
more than 15 years evaluating catalyst-based investment
opportunities across the capital structure of North American
companies with a focus on real assets. Mr. George has worked in a
management capacity, including as a chief executive officer, with
numerous corporate boards to turn around operations, affect
corporate action and implement governance policies in order to
maximize shareholder value.
Mr. George co-founded the alternative investment platform
FrontFour Capital Group LLC and currently serves as a trustee and
director on the boards of Cominar REIT and Trez Capital Junior MIC.
He previously served as chairman of the boards of FAM REIT and
Huntingdon Capital Corp., as the lead independent director of both
Cornell Companies Inc. and PW Eagle Inc., and on the boards of
Allied Defense Group Inc. and IAT Air Cargo Facilities Income
Fund.
Andrew Stordeur
Mr. Stordeur joined the Company as Chief Commercial Officer in
March 2018 and became President,
Canada in May 2019. Mr.
Stordeur has over 15 years of experience working in the fast-moving
consumer goods industry both domestically and internationally,
contributing to the success of well-known brands like Molson Coors
Beverage Company, Mars Canada Inc., and other international
consumer packaged goods companies. Before joining Sundial,
Mr. Stordeur was the Chief Sales and Customer Officer at the Molson
Coors Beverage Company and also spent time in senior commercial
roles at Mars Canada.
For more information about Sundial, visit
www.sndlgroup.com and follow us on Twitter @SundialCannabis,
Instagram @SundialCannabis, LinkedIn @SundialCannabis and
Facebook @SundialCommunity.
About Sundial Growers Inc.
Sundial proudly crafts pioneering cannabis brands to Heal, Help
and Play:
- Heal - cannabis products used as prescription medicine
- Help - cannabis products that strive to promote health and
wellness through CBD
- Play - cannabis products to enhance social, spiritual and
recreational occasions
Sundial has facilities in Canada and the United Kingdom and provides quality and
consistent products consumers can trust.
In Canada, we grow
'craft-at-scale' cannabis using purpose-built modular facilities
and award-winning genetics. Sundial's flagship production facility
is located in Olds, Alberta with a
second facility in Rocky View,
Alberta. We have commenced
construction of our next purpose-built facility in Merritt, British Columbia.
In the United Kingdom, we grow
high-quality traceable plants, including hemp, ornamental flowers
and edible herbs, in over 1.5 million square feet of
state-of-the-art environmentally friendly, indoor facilities.
Bridge Farm has three facilities in Spalding with another currently
under construction.
Forward-Looking Information Cautionary Statement
This news release includes statements containing certain
"forward-looking information" within the meaning of applicable
securities law ("forward-looking statements"), including statements
regarding the Company's cost-cutting initiatives, the cost savings
expected to be achieved and the maintenance of production levels.
Forward-looking statements are frequently characterized by words
such as "plan", "continue", "expect", "project", "intend",
"believe", "anticipate", "estimate", "may", "will", "potential",
"proposed" and other similar words, or statements that certain
events or conditions "may" or "will" occur. These statements are
only predictions. Various assumptions were used in drawing the
conclusions or making the projections contained in the
forward-looking statements throughout this news release.
Forward-looking statements are based on the opinions and estimates
of management at the date the statements are made,
and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
The Company is under no obligation, and expressly disclaims any
intention or obligation, to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as expressly required by applicable
law.
Media Contact: Sophie Pilon,
Corporate Communications Manager, Sundial Growers Inc., O:
1.587.327.2017, C: 1.403.815.7340, E: spilon@sundialgrowers.com