- The stock price of Sundial Growers Inc (NASDAQ: SNDL) increased by 32.86% on Friday November 27 as it went from a previous close of $0.28 to $0.37 per share. These are some of the reasons why the stock price surged.
The stock price of Sundial Growers Inc (NASDAQ: SNDL) — a company that engages in the production, distribution, and sale of cannabis products — increased by 32.86% on Friday, November 27 as it went from a previous close of $0.28 to $0.37 per share. The company’s stock price also increased another 7.5% after hours to a price of $0.40 per share. SNDL also saw a bump in trading as 326 million shares were traded on Friday alone. These are some of the reasons why the stock price increased.
Rumor About An Acquisition
If you rewind back to August 2020, Sundial Growers had announced it was initiating and continuing a process to explore strategic alternatives focused on maximizing shareholder value. And Sundial’s board of directors had authorized management and its external advisors to consider a broader range of strategic alternatives, including a potential sale of the company or a merger. AlternativeFinanceNews.com updated one of its articles saying that a press release is expected December 2 with a possible announcement about a Sundial merger.
Update On The MORE Act
Another major reason why the stock price of SNDL and other related stocks jumped on Friday is due to an announcement that a bill to federally legalize marijuana will receive a full floor vote in the U.S. House of Representatives next week. Aurora Cannabis, Aphria, and Charlotte’s Web Holdings also saw a significant bump in stock price today as well.
This MORE Act announcement was made by House Majority Leader Steny Hoyer (D-MD). Hoyer said that the chamber is going to take up the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act between Wednesday and Friday.
First, the bill is expected to go before the House Rules Committee. And they prepare legislation for floor action and determines which amendments can be made for a consideration by the full body. And the House approving the bill during the presidential transition may encourage President-elect Joe Biden to embrace legalization.
The MORE Act — which has Judiciary Committee Chairman Jerrold Nadler (D-NY) as the lead sponsor — would deschedule cannabis and expunge the records of people with prior marijuana convictions. There will also be a federal 5% tax on sales — which would generate revenue that would be reinvested in communities that are most impacted by drug wars.