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.
