Sundial Growers Inc. (SNDL) stock jumped a further 22.88% to reach $0.8846 after hours, against its last close at $0.7199 with an increase of 6.26% on November 11, 2021. After the market closed on November 11, Sundial Growers shared some new developments including its third-quarter financial and operational highlights plus a new share repurchase program. The new developments soon gave the stock a boost to its slow bullish path.
Incorporated in 2006, Sundial Growers Inc. (SNDL) is a Canada based cannabis production and marketing company.
SNDL’s Q3 Highlights
Sundial Growers Inc. (SNDL) announced its third-quarter 2021 financial and operational highlights on November 11, for which the conference call will be held at 10:30 am ET on November 12, 2021.
The financial highlights put the company’s net earnings at $11.3 million CAD for the quarter ended September 30, 2021, as compared to a $17.4 million CAD loss for the same quarter of 2020. With an increase of 12% from the third quarter of 2020, the net revenue from Cannabis segments was $14.4 million CAD for the third quarter of 2021. This net revenue from the Cannabis segment shows an increase of 57% over the previous quarter.
As per the operational highlights for the third quarter, SNDL acquired all of the issued and outstanding common shares of Spirit (Inner Spirit Holdings Ltd.) on July 20, 2021. Sundial Growers also entered the agreement on October 7, 2021, for acquiring Canada’s largest liquor retailer Alcanna which operates on 171 locations.
The Share Repurchase Program
On November 11, 2021, Sundial Growers Inc. (SNDL) announced its newly approved share repurchase program. As per the repurchase program, the company can repurchase as much as $100 million CAD worth of its outstanding common shares. SNDL’s board of directors according to the program, agreed to repurchase the shares from time to time through open market purchase, privately negotiated transactions, block trades, derivatives, or other such means, at the discretion of management. The repurchase will be done are prevailing market prices at the time of purchase. This new repurchase program will allow SNDL to return value to shareholders, opportunistically.
Remarks by SNDL CEO
The company’s chief executive officer, Zach George remarked on its third-quarter highlights, marking it as the initial impact of the transformation in the business due to the efforts of the team. Mr. George further commented that in spite of the current challenges to the industry like excessive competition in the market (after cannabis legalisation in Canada), heavy marketing and advertising restrictions along with increased excise taxes, the company’s financial condition is very strong.
According to the CEO, the company is focused on continued profitability and improvement in all parts of the business operations.
