Sundial Growers Inc. (NASDAQ: SNDL) stock showed a gain of 14.08% during the last trading close whereas the stock showed an upsurge of 11.73% in the pre-market after the company announced its 50/50 joint venture with SAF group. SNDL is the licensed producer with which it crafts cannabis through state-of-the-art indoor facilities. Sundial Growers craft-at-scale modular growing approach, award-winning genetics, and experienced master growers make them exceptional.
What is happening?
In this joint venture between Sundial Growers and SAF group, the companies will work together to build SunStream Bancorp. The focus is on making debt and equity investments in Canada and international markets related to cannabis. According to the agreement between the companies, Sundial and SAF group will own half of SunStream each.
Regarding SunStream it is believed that it will open ways to make special opportunities fund in which contributions from third-party investors will be accepted along with $100 million in initial funding from Sundial. SunStream also plans to create a Canadian special purpose acquisition company (SPAC) in the future.
The CEO of Sundial in a press release said after the success of their internal capital investment program, this joint venture is a great initiative for the company which will bring success and will also enable us to fulfill our commitments to shareholders. Also, SunStream will help Sundial to remain focused on their core operations while utilizing the power of SAF’s equity and credit investment expertise on an international level.
Sundial has managed to gather hundreds of millions of dollars in recent months through a series of share and warrant offerings. Although these stock sales have shareholders’ ownership stakes but at the same time it has given a lot of cash to cannabis producer to invest.
Finally, the ability to generate strong terms on its shareholders capital will determine the long-term performance and efficiency of Sundial stock.