Sundial Growers Inc. (SNDL), a cannabis company that engages in the production and distribution of flowers, pre-rolls, and vapes, announced on Friday that it has increased its financial commitment to SunStream to $188M, which was previously announced to be $100M. SNDL stock increased substantially adjacent to the news, with SNDL share price still rising to date.
At last check in premarket trading, shares of Sundial Growers Inc. (SNDL) were up 2.22% at $0.89. The stock of SNDL gained 4.36% to complete the last trading session at $0.87. The price range of the company’s shares was between $0.8461 and $0.90.In the past 12 months, the company’s stock has advanced 74.26%
About Sundial growers.
The company announced in march to initiate a joint venture with the SAF Opportunities LP through a newly established corporation, SunStream Bancorp. The joint venture has been established with a 50% stake for each company and was created with an objective to stimulate investment opportunities in the cannabis space, by offering exposure to debt, equity, and hybrid investments.
SunStream was initially given the task to create a special opportunities fund, with assistance from various other partnerships as well as the financial commitment from SNDL. An update regarding capital commitment to several third parties is expected within a couple of months. It is also expected that the joint venture should will pursue other opportunities such as a Canadian SPAC, which could be extremely significant in a capital generation.
The complementary nature of the businesses will allow Sundial to remain focused on their core operations while leveraging a strategic financial and operational partnership with SAF, which specializes in private equity and credit investment expertise on an international scale. Zach George, chief executive officer for Sundial, stated at the time. “We look forward to working together to generate attractive returns for our stakeholders through broader capital deployment opportunities in the global cannabis market.”
Sundial’s brand portfolio which is inclusive of Top Leaf, Sundial Cannabis, Palmetto, and Grasslands focuses on consumer-oriented products and is trying immensely to further diversify its product line generate attractive returns for our stakeholders through broader capital deployment.
Sundial growers offered a better-than-expected outlook for the current quarter and anticipate sales and profits to grow for the full year after a joint venture with SAF opportunities. Furthermore, a larger distribution network and an increase in the cannabis retail market combined with a diversified product line has peaked investor interest in the company stock.