Sundial Growers (NASDAQ: SNDL) evidently remains bullish on The Valens Company (TSX: VLNS). The firm, whom previously revealed it was acquiring shares of the company on the open market, this morning indicated that it has continued to acquire a stake in the firm.
Sundial this morning revealed it has dropped another $0.3 million into its stake in the cannabis processor, purchasing another 100,000 shares at an average price of $3.00 per share. The acquisition brings the firms total holdings to 18.67 million shares of Valens.
The firm previously revealed back in May 2021 that it had been slowly acquiring a stake in the processor, with the firm at the time taking a 10.1% stake with a total of 16.0 million shares. However, after dilution due to the acquisition of certain firms including Verse Cannabis and Green Roads, the stake was lowered on a percentage basis. The oncoming acquisition of Citizen Stash in an all-stock transaction is expected to further impact Sundial’s stake on a percentage basis.
On a percentage basis, the latest purchase brings Sundial’s ownership in the company back to 10%, thus requiring the need for the early warning report that was filed this morning. Sundial reportedly has a cost basis of $2.665 per share for its holdings in Valens, including this latest purchase, while Valens is currently trading at $2.40 per common share.
Sundial Growers last traded at $0.68 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.