In an unexpected announcement this morning, it appears that Sundial Growers (NASDAQ: SNDL) is eyeing the extraction space. The company this morning announced that it has obtained over a 10% stake in The Valens Company (TSX: VLNS).
The announcement this morning was part of a mandatory early warning report, required when a position of 10.0% or over is taken in a public company by any one entity or individual. The company revealed that it acquired 534,800 common shares of Valens yesterday at a price of $3.663 per share, bringing its total holdings in the company to 16,040,200 common shares, or 10.1%.
Sundial also revealed this morning that its average cost basis across all shares is $2.67, however its unclear when the cannabis cultivator began taking a position in the extractor.
The securities have reportedly been acquired for investment purposes. Shares are reportedly being acquired via both public and private methods.
Sundial Growers last traded at $0.83 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.
