Sundial Growers (NASDAQ:
SNDL) is a testament to the strength of retail investors in the stock market today, who have largely bid up SNDL stock as a speculative cannabis play.
That bull thesis gained some credibility today with the company’s announcement of a $22 million deal with
Indiva Limited, a Canadian cannabis producer specializing in edibles. Indiva, which trades on the
Approximately half of the deal will be realized via a private placement of NDVA stock, while another $11 million will come via non-revolving loan facility. The deal is set to close on Feb. 23, 2021 pending the necessary approvals.
While SNDL has been a big beneficiary of retail investor interest in recent weeks, many market observers have felt there was little to support the price action, or to suggest that the company is well-positioned to capitalize on that price action.