Why Sundial Growers Stock Popped Wednesday Morning
Shares of Canadian marijuana grower Sundial Growers (NASDAQ: SNDL) popped early Wednesday with a jump of almost 6%. The stock didn't hold those gains, but remained up about 1.5% as of 10:30 a.m. EDT today.
Initial investor interest today likely came after another Canadian cannabis company announced a new investment in the U.S. market. Tilray (NASDAQ: TLRY) said last night that it has acquired the majority of the outstanding senior secured convertible notes of U.S.-based cannabis retailer MedMen Enterprises (OTC: MMNFF). This puts Tilray in a position to potentially own a significant equity stake in MedMen, which would give it a path to the U.S. cannabis market should federal legalization materialize. So why did Sundial investors react to this? Because Sundial has made acquisitions a key portion of its future strategy, and Tilray's move could be a framework for Sundial, too.
Source Fool.com
