SNDL Stock: From $0.83 To $0.77 (7.23% Decrease) Intraday Explanation

By Amit Chowdhry ● May 4, 2021
  • The stock price of Sundial Growers Inc (NASDAQ: SNDL) fell from $0.83 to a day low of $0.77 (7.23% decrease) during intraday trading. This is why it happened.

The stock price of Sundial Growers Inc (NASDAQ: SNDL) fell from $0.83 to a day low of $0.77 (7.23% decrease) during intraday trading. This appears to be a news release from the company

Sundial Growers had announced that it has acquired over 10% of the issued outstanding common shares of The Valens Company Inc. (TSX: VLNS) (OTCQX: VLNCF). Specifically, Sundial acquired 538,400 Common Shares at a price of $3.663 per Common Share for total consideration of $1.972 million on May 3.

Immediately before the completion of the transaction, Sundial owned 15,501,800 Common Shares, representing approximately 9.7% of the issued and outstanding Common Shares on a non-diluted basis as at April 14, 2021. And following the completion of the transaction, together with all previous acquisitions of Common Shares by Sundial, the company now owns 16,040,200 Common Shares, representing approximately 10.1% of the issued and outstanding Common Shares on a non-diluted basis as at April 14, 2021. Sundial’s average cost base for the Common Shares – including those acquired in the Transaction – is $2.670 per Common Share.

Sundial acquired the securities reported herein for investment purposes. And Sundial may, depending on market and other conditions, increase or decrease its beneficial ownership in Valens’ securities, whether in transactions over the open market, by privately negotiated arrangements or otherwise, subject to a number of factors such as general market conditions and other available investment and business opportunities.

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