Sundial Growers up 20% after a series of announcement
- Sundial recorded $11.3 million net earnings for this quarter.
- The Cannabis segment of the business brought in net revenue of $14.4 million for this quarter.
- The company acquired both Alcanna Inc and Inner Spirit in the same fiscal year.
Sundial Growers Inc (NASDAQ: SNDL) increased by 20% and recently reported its third-quarter operational and financial results for 2021. The company also announced that a new and innovative share repurchase program had been approved by its BoD (Board of Directors).
This program allows Sundial to repurchase a limit of $100 million of the company’s outstanding common shares. This will enable the company to opportunistically give value back to its shareholders.
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Senior management statements
Sundial’s Chief Executive Officer, Zach George, said:
We remain focused on sustainable profitability and continued improvement in all aspects of our operations. Despite the ongoing challenges facing industry participants, our financial condition has never been stronger.
Mr. George also said:
Sundial is uniquely positioned relative to its peers as we seek to delight consumers and become a trusted industry partner. Our balance sheet strength enables our team to avoid short term pressures while working to improve the quality of our decision making.
Business operations highlights
Besides the Inner Spirit acquisition, Sundial also reported three Cannabis operating segments: retail, production, and cultivation. These business segments did extremely well in the third quarter, recording $14.4 million net revenue.
The company is also set to acquire Alcanna after executing an arrangement agreement on October 7 of this year. According to the agreement, Sundial is to pay a total consideration of roughly $346 million to acquire all of the company’s outstanding and issued common shares.
Alcanna’s longstanding liquor customer base will help provide Sundial Growers with a stable stream of revenue via a proven and mature business model. Alcanna is a liquor retailer based in Canada and operates mainly in Alberta under three specific names; Ace Liquor, Liquor Depot, and Wine and Beyond.
As far as the share repurchase program is concerned, Sundial’s management will be allowed to purchase shares at their discretion.