Sundial Growers Takes 7.3% Stake In Village Farms
Sundial Growers (NASDAQ: SNDL) continues to express interest in acquiring Canadian based cannabis operations. After multiple acquisitions last year, and the pending purchase of cannabis and alcohol retailer Alcanna Inc (TSX: CLIQ), the firm this morning disclosed it has invested in yet another Canadian cannabis name.
It seems the company has taken a 7.3% stake in Village Farms International (NASDAQ: VFF), whom currently operates its cannabis subsidiary Pure Sunfarms in Delta, BC, as well as a tomato operation in the US. The stake is via the ownership of 6.4 million common shares of the issuer, which it presumably acquired on the open market.
At the time of writing, the value of the position is currently pegged at approximately US$44.4 million. The firm has not yet indicated why it purchased a stake in the firm, or whether it intends to grow the position.
As per Fintel.io, the position makes Sundial one of the largest institutional holders in the company, with the second largest being the AdvisorShares Pure Cannabis ETF (NYSE: YOLO), which holds 4.5 million shares in the firm for a 5.16% stake.
Sundial Growers last traded at $0.62 on the Nasdaq.
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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.
