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.
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.