Trade Sundial Growers Inc. - SNDL CFD

Sundial Growers Inc. Company profile

Sundial Growers (SNDL) engages in growing, distributing and selling cannabis for adult-use and medical markets in Canada. The company’s shares are traded on the Nasdaq under the ticker symbol SNDL. 

Headquartered in Calgary, Canada, the company has three business segments: cannabis cultivation and production as well as cannabis retail stores – together are under Cannabis Operations – and investment operations.

By the end of September 2021, the company harvested 60 million grammes of cannabis. It has 109 retail stores across Canada as of November 2021. The company sells its cannabis under the brands Top Leaf, Sundial, Palmetto and Grasslands.

In 2021, the company and Canadian alternative investment company, SAF Group, founded a private equity investment firm, SunStream Bancorp. The joint venture firm is looking for opportunities and investments in cannabis-related sectors, both in Canada and internationally.

On 7 October 2021, the marijuana retailer announced plans to acquire Canada’s largest private liquor retailer Alcanna for CAD 9.12 per share, totalling CAD 346m. Alcana sells its products through its stores in 171 locations, mostly in Alberta. 

Nova Cannabis, which holds 63% equity interest in Alcanna, is one of Canada’s largest cannabis retailers, operating 62 stores. Nova Cannabis currently operates 62 stores and does not sell Sundial Growers’ products.

Sundial Growers and Alcanna on 6 January 2022 agreed to amend the October agreement. Under the revised plan, for each Alcanna share held, Alcanna shareholders will receive 8.85 common shares of Sundial and CAD 1.50 in cash consideration. In the previous deal, Alcanna shareholders would get only 10.69 common shares of Sundial. 

The company, which went public in 2019, has been at the risk of delisting from Nasdaq as its share price has been traded below $1 for nearly a year. Nasdaq has given the company an extension of 180 calendar days to comply with the minimum bid price requirement. With the extension, the company can regain compliance if its shares closes at or above $1 apiece for a minimum of 10 consecutive trading days before 8 August 2022.