After moving between 70 and 80 cents for a month, the Sundial Growers Inc (NASDAQ: SNDL) stock broke out in June 2021. Some money from cryptocurrency expects to flow into Sundial. Any move above $1 could take the stock to reach $1.10 soon.
Invests CAD 22 million in Indiva
Sundial invested CAD 22 million in Indiva on February 16, 2021 through a private placement.
Indiva issued 25 million common shares to Sundial at $0.44 for each share. It also mobilized $11 million through a term loan from Sundial.
Sundial’s CEO, Zach George, is excited to support Indiva in developing innovative and quality products. It broadens its exposure to cannabis edibles through this investment. Indiva would utilize the proceeds to pay back its debt in full.
Indiva’s CEO, Niel Marotta, said the company is pleased to welcome Sundial as an investor in Indiva. It offers necessary working capital and resources to support its growth.
Indiva can drive its throughput/ profitability through automation and deliver best-in-class products to its customers. With improved financial strength, Indiva can position itself as a leader in the Canadian edibles market.
Creates a JV
Sundial creates SunStream Bancorp, a new JV with SAF Group. The company holds a 50% stake in the JV, which would focus on investment opportunities in the domestic and global cannabis industry. Its investments in SunStream are $288 million.
Invests CAD 2 million in Valens
Sundial invested CAD 2 million in Valens. The company holds a stake of more than 10% in Valens, considering previous and present investments. In the past year, Valens posted revenues of CAD 72 million.
Plans to takeover InnerSpirit
Sundial announced its plans to takeover InnerSpirit for CAD 131 million. InnerSpirit operates 86 stores nationwide. It expects to increase the store count to 100 this summer. InnerSpirit reported revenues of CAD 27 million in 2020.
Sundial, a cannabis manufacturer, made significant investments in other related businesses and reported revenues of CAD 11.7 million in Q1 2021. All these opportunities help the company to strengthen its topline. The company also holds a cash balance of CAD 752.7 million as of May 7, 2021.