Benzinga | Oct 8, 2021 09:53AM EDT

Why Sundial Growers Stock Is Trading Higher Today

Sundial Growers Inc (NASDAQ:SNDL) is trading higher Friday after the company announced it will acquire Alcanna.

Sundial will acquire all of the issued and outstanding common shares of Alcanna by way of a statutory plan of arrangement for approximately $346 million.

The acquisition is expected to increase Sundial's free cash flow generation via Alcanna's liquor business. The company will also benefit from increased Canadian cannabis exposure through Alcanna's Nova Cannabis brand.

"This made-in-Alberta transaction allows Sundial to further its mission to own the customer relationship and deliver sustainable value to shareholders," said Zach George, CEO of Sundial. "Alcanna's value-focused model in liquor retailing has created market stability and we believe that the replication of this playbook in cannabis has strong potential to drive a similar result.

Alcanna is Canada's largest private liquor retailer, operating 171 locations. Alcanna also holds a 63% equity interest in Nova Cannabis.



The famed Benzinga Cannabis Capital Conference will gather industry insiders and investors from around the world, including Sundial Growers CEO Zach George, on October 14 and 15 in New York City. Attendees can expect two full days of keynotes, panel discussions, fireside chats, networking, company presentations, celebrity appearances and an impressive lineup of the top journalists in the cannabis space.



Sundial Growers is engaged in producing and marketing cannabis for the adult-use market.

SNDL Price Action: Sundial has traded as high as $2.30 and as low as 13 cents over a 52-week period.

The stock was up 15.70% at 75 cents at time of publication.

Photo: NickyPe from Pixabay.