Why Is Sundial Growers Inc. (NASDAQ: SNDL) Rising With Other Popular Pot Stocks?

Sundial Growers Inc. (NASDAQ: SNDL) stock was 15% up on Friday, as investors remain hopeful for its deal-making with Inner Spirit Holdings. The balance sheet of Sundial Growers reflects a positive horizon, indicating that there could be some more acquisitions in the following months. The company’s deal-making prospects is appealing for the investors, who see a reshaped marijuana market in the times ahead. 

Q1-2021 financial results

Here’s a look at the recently announced Q1-2021 financial results of this pot stock. Earnings from operations is reported at $1.7 million against a loss of $32.7 million in Q4-2020. The net loss of Sundial Growers is $134.4 million, attributed to $130.0 million non-cash amounts. This is due to the stock volatility on derivative warrants’ accounting valuation. 

In the first quarter of this year, the company achieved $3.3 million adjusted EBIDTA, the first positive n the history of the company. This compares with the $5.6 million adjusted EBIDTA loss in the previous quarter. 

The company has unrestricted cash, long-term investments, and marketable securities of $1.08 billion in hand as of May 7, 2021. This compares with $969.5 million as of March 31, 2021. There is no outstanding debt on the company’s balance sheet. 

Global cannabis revenue at $11.7 million in Q1 2021

The global cannabis revenue of Sundial Growers is reported at $11.7 million in Q1 2021, decreasing 30% from the quarter before. The investment balance is $96.0 million as of March 31, 2021, in loans related to cannabis. The company generated $15.7 million in income on marketable securities for the reported quarter. 

At the end of the quarter, the company announced the acquisition of Spiritleaf retail cannabis network and Inner Spirit Holdings. Meanwhile, it is continuing to evolve in the library of strains and focuses on the quality metric. 

With the third wave started, the impact of COVID-19 on cannabis business cannot be ignored. Yet, the company said that it is adjusting to the employees’ needs and the market demand in the pandemic. With a strong balance sheet, Sundial Growers seem to be rising ahead from here. 

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