Shares of the Sundial Growers Inc. (SNDL) stock rallied in the pre-market today on July 29, 2021. SNDL stock price saw a push of 4.59% to reach $0.89 a share at the time of this writing. It seems that penny stock is continuing the rally from the previous trade as it went up by 8.14% at closing. Let’s understand the reason behind this bull.
What’s happening?
Sundial Growers Inc is the producer of cannabis products for adult use in Canada. There seems to be no direct news related to SNDL stock to justify the bullish sentiment. However many cannabis stocks have reached certain heights after the extraordinary financial results by Tilray on July 28, 2021. Tilray is also involved in the production of medical cannabis products. The financial results of TLRY stock were above the expectations of investors. The revenue was $142.2 million representing 25% growth over the year. 36% of cannabis sales have contributed to this growth.
As a result, a plethora of investors responded positively to the news and many cannabis stocks including SNDL are now enjoying the bullish sentiment.
SNDL stock completed the Spiritleaf Retail Cannabis Network:
SNDL stock on July 20, 2021, completed the acquisition of all the issued and outstanding common shares of Inner Spirit Holdings Ltd. The consideration for this acquisition consisted of $0.30 in cash and 0.0835 of Sundial’s common share. The addition of Spiritleaf has enabled the SNDL stock to expand its presence in the current operating markets in Canada. Furthermore, this acquisition will help Sundial to understand retail markets, consumer behavior, and product marketing insights. Spiritleaf good reputation in the market will further strengthen the position of Sundial stock in the operating market.
SNDL stock Partners with SAF Group:
The Sundial business is not relying on just cannabis cultivation but the penny stock is also growing with investments and partnerships. SNDL stock’s partnership with SAF group is the proof for this claim. Earlier this month, SNDL stock increased the increased commitment of $538 million to SunStream Bancorp Inc. This commitment was $188 million prior to this announcement. For people who do not know about SunStream, it is the joint venture between SAF Group and Sundial that helps in leveraging strategic financial and operational partnerships between them.
Wrap Up:
So far so good for cannabis stock including Sundial as far as market sentiment is concerned. The management is deeply concerned to meet the diverse needs of the cannabis consumer market in Canada.
