SNDL Inc
For the period ended Dec 31, 2023. Filed Mar 21, 2024.
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The yearly report of certain Canadian companies, filed under a joint US and Canadian system. It is the main yearly account these companies give US investors, largely as filed in Canada.
FY2023 · Filed Mar 21, 2024
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Contents
EX-99.3 · CONTRACTUAL COMMITMENTS AND CONTINGENCIES
CONTRACTUAL COMMITMENTS AND CONTINGENCIES
A)
Commitments
The information presented in the table below reflects management’s estimate of the contractual maturities of the Company’s obligations at December 31, 2023.
| ($000s) | Less thanone year | One to threeyears | Three to fiveyears | Thereafter | Total |
|---|---|---|---|---|---|
| Accounts payable and accrued liabilities | 68,210 | — | — | — | 68,210 |
| Lease liabilities | 41,743 | 69,660 | 51,372 | 35,719 | 198,494 |
| Financial guarantee liability | — | 268 | — | — | 268 |
| Total | 109,953 | 69,928 | 51,372 | 35,719 | 266,972 |
The Company has entered into certain supply agreements to provide dried cannabis and cannabis products to third parties. The contracts require the provision of various amounts of dried cannabis on or before certain dates. Should the Company not deliver the product in the agreed timeframe, financial penalties apply which may be paid either in product in-kind or cash. Under these agreements, the Company has accrued financial penalties payable as at December 31, 2023 of $2.5 million (December 31, 2022 – $2.5 million).
B)
Contingencies
From time to time, the Company and its subsidiaries are or may become involved in various legal claims and actions which arise in the ordinary course of their business and operations. While the outcome of any such claim or action is inherently uncertain, the Company believes that the losses that may result, if any, will not be material to the financial statements.
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