Sundial Growers Increases Total Investment In Sunstream Bancorp To $538.0 Million
Sundial Growers (NASDAQ: SNDL) appears to be looking for avenues to spend its excess cash. The company this morning issued a brief announcement, wherein it indicated that it is substantially increasing its commitment to a cannabis investment vehicle.
The arrangement will see Sundial increase its previously committed $188.0 million to $538.0 million for its joint venture with SAF Group known as SunStream Bancorp. The investment vehicle is focused on leveraging “a strategic financial and operational partnership to target asymmetrically enhanced risk-return opportunities in the cannabis industry.”
This morning marks the second time for which the firm has increased its investment in the vehicle, with the original amount pegged at $100.0 million, before the firm increased that figure in April. At the time the firm stated that it had expected to provide an update on the third-party capital commitments within 60 days, however this update is not believed to have yet been provided.
The joint venture itself is expected to form a special opportunities fund for use within the cannabis space, with additional potential mandates including a SPAC among other items.
It’s unclear at this time if the $350.0 million increase to the fund announced this morning is slated for a particular investment, or if its just being used for general funds by the joint venture.
Sundial Growers last traded at $0.89 on the Nasdaq.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
