Sunstream IVXX Investment Corp. will be a specialty finance company that operates as a closed-end, non-diversified management investment company. Sunstream IVXX submitted a confidential IPO filing to the SEC in December.
What is Sunstream IVXX?
Sunstream IVXX is an affiliate of SunStream Bancorp Inc.
SunStream Bancorp Inc. is a joint venture sponsored by Sundial Growers Inc (NASDAQ: SNDL) and SAF Group.
Founded in 2021, SunStream Bancorp is a private equity investment firm based in Calgary, Canada. The firm seeks to invest in cannabis-related verticals, seeking Canadian and international opportunities and investments.
Sunstream Opportunities is also an affiliate of Sunstream Bancorp Inc. It recently received an investment-grade rating of BBB+ by Egan-Jones Ratings Company, an independent, unaffiliated rating agency.
Zach George, CEO of Sundial, said:
"The investment grade credit rating assigned from Egan-Jones is a testament to the strong track record of Sunstream Opportunities LP's existing credit portfolio, which comprises over CAD$375 million of investments thus far,"
When Will Sunstream IPO?
The Sunstream IVXX IPO was expected to launch in Q1 of 2022. Therefore it could be imminent. However, a date has not yet been set.
The number of shares of common stock to be sold and the price range for the proposed offering have also not been determined.
"Sunstream IVXX Investment Corp. Announces Confidential Submission of Draft Registration Statement for Proposed Initial Public Offering." https://t.co/Jzdfo6ueMU— Sundial (@sundialcannabis) December 2, 2021
Use of Proceeds
The purpose of the offering is to use the net proceeds to invest primarily in the debt of United States cannabis companies across the cannabis industry.
Sunstream will loan money to cannabis companies in North America from which it will make money on interest payments. The company has already begun this practice.
For instance, SunStream Bancorp Inc. recently provided a $100m senior secured credit facility to Jushi Holdings (CNSX: JUSH), a national, multi-state cannabis company.
About Sundial Growers Inc
Sundial is an Albertan public company with Common Shares traded on the NASDAQ under the ticker symbol SNDL. The business operates three segments: Cannabis Operations, Cannabis Retail and Investments.
Sundial is a licensed producer that crafts small-batch cannabis using state-of-the-art indoor facilities. Its 'craft-at-scale' modular growing approach, award-winning genetics and experienced growers define its process.
Sundial's brand portfolio includes Top Leaf, Sundial Cannabis, Palmetto and Grasslands.
Sundial also operates the Spiritleaf retail banner. Spiritleaf aims to be the most knowledgeable and trusted source of recreational cannabis by offering a premium consumer experience, and quality curated cannabis products.
Who is Zachary George?
Zachary Ryan George is the CEO and Director of Sundial Growers Inc, and he's also the founder of FrontFour Capital Group LLC.
George has headed up five different companies.
He is also on the board of Cominar Real Estate Investment Trust and Trez Capital Mortgage Investment Corp.
He received an undergraduate degree from Simon Fraser University and a graduate degree from Brooklyn Law School.