Sundial Growers Inc (SNDL)

[yabadabado]

Don't rule out buyout or merger...

Is Sundial a Potential Acquisition Target?
With its recent fundraising, Sundial looks well positioned to accelerate growth. However, a potential acquisition cannot be ruled out.
It seems that the cannabis industry is moving towards consolidation. In December 2020, Tilray (TLRY) and Aphria (APHA) announced a business combination agreement to create the world’s largest cannabis company. This might just be the beginning of the industry consolidation phase.

Specific to Sundial, the following point from the Q3 2020 management discussion puts things into perspective.
“Sundial’s Board has authorized management and its external advisors to consider a broader range of strategic alternatives, including a potential sale of the Company, merger or other business combination, investments in other Canadian cannabis companies.”
Clearly, with the ramp up in its cash position, the company will be looking to acquire strategic interest in other cannabis players. However, a merger with a bigger player remains a possibility, and any such news could trigger a sharp upside move for SNDL stock.

https://www.nasdaq.com/articles/sundial-growers%3A-well-positioned-for-strong-organic-and-inorganic-growth-2021-02-18