Sundial Growers Stock (SNDL): Why The Price Increased

By Amit Chowdhry ● Jan 4, 2022
  • The stock price of Sundial Growers Inc (NASDAQ: SNDL) increased by over 1.5% pre-market today. This is why it happened.

The stock price of Sundial Growers Inc (NASDAQ: SNDL) increased by over 1.5% pre-market today. This is a slight increase as the company stock price increased 6.95% in the most trading session. There appear to be a few catalysts driving up the stock price.

1.) Upcoming Merger Activity

Alcanna (TSX: CLIQ) recently reminded the holders of common shares in the capital of Alcanna to cause their Alcanna Shares to be voted in connection with the upcoming special meeting of the Alcanna Shareholders on January 7, 2022 at 10:00 a.m. (Mountain Time) to consider the special resolution to approve the proposed plan of arrangement with Sundial Growers. 

Under the terms of the arrangement agreement between Alcanna and Sundial dated October 7, 2021, Sundial will acquire all of the issued and outstanding Alcanna Shares in exchange for the issuance to Alcanna Shareholders of 10.69 common shares in the capital of Sundial for each Alcanna Share held (the consideration). The consideration represents a deemed value of approximately $8.08 per Alcanna Share and implies an approximate 17% premium from the closing price of Alcanna Shares on the TSX as of December 29, 2021. At this implied price and based on Sundial’s 30-day average trading volumes as of December 29, 2021, it would take approximately 4 days of liquidity for holders of Alcanna Shares to dispose of all Sundial Shares received pursuant to the Arrangement.

The deadline for Alcanna Shareholders to vote their Alcanna Shares by proxy is 10:00 a.m. (Mountain Time) on January 5, 2022.

2.) Beto O’Rourke Campaign

During a campaign rally in Austin, Texas, Beto O’Rourke was cheered for saying he promised to legalize marijuana in Texas. 

“I’ve been warned that this may or may not be a popular thing to say in Austin, Texas,” said O’Rourke in Republic Square Park in December via Marijuana Moment. “But when I am governor, we are going to legalize marijuana.”

3.) New Oregon Marijuana Rules

Oregon approved multiple changes to the regulation of the cannabis industry for 2022, including doubling how much marijuana customers can purchase and allowing home delivery across city and county lines.

In a December 28 meeting, Oregon’s Liquor and Cannabis Commission approved new rules that officials say will help streamline oversight of the industry, decrease violations, expand choices for consumers and help prevent children from accessing hemp products containing THC.

These changes are in response to the industry’s rapid growth and will put Oregon more in alignment with other states on marijuana use rules as well as position the state in the export market if marijuana is legalized nationally.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.