Here’s why the stock of sundial producers jumped on Thursday
Canadian cannabis company Producers of sundials (NASDAQ: SNDL) restructured its business this year to manage a cannabis cultivation and production segment alongside an investment arm. He has subsequently repeatedly increased his commitment to the investment industry and today made a further announcement regarding his future. The market reacted positively and Sundial stock jumped 5.3% at the start of Thursday’s session. As of 12:48 p.m. ET, shares of Sundial were still up 4.5%.
In March 2021, Sundial announced a strategic partnership to form SunStream Bancorp as a joint venture. The company aimed to create an investment arm that Sundial would use to grow alongside its cannabis business. Sundial has now announced that it has filed an application for initial public offering (IPO) of Sunstream IVXX Investment Corp. The company said the entity will be a specialty finance company and expects it to be legally regulated as a business development company (BDC).
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Sundial initially announced that it would commit C $ 100 million to the SunStream Bancorp joint venture, which would allow it to continue to focus on its cannabis-related business while participating in new investments in the sector. The company subsequently increased the capital it added to SunStream twice, for a total commitment of over $ 400 million in US dollars.
The latest announcement to create a new public company as a subsidiary of SunStream aims to expand Sundial’s interest in cannabis investments in the United States. The purpose of the offering is to use the net proceeds thereof to invest primarily in the debt of US cannabis companies in the cannabis industry. “
Investors are encouraging the decision to continue pursuing growth by investing in other cannabis companies. Focusing on US companies also offers more potential if the market opens up if federal legalization materializes in the future.
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