Sundial Growers Has Another Acquisition Target in Its Crosshairs
Sundial Growers (NASDAQ: SNDL) is still in deal-making mode. In the past year, it has closed on multiple transactions, with the most recent being liquor retailer Alcanna. Despite the cannabis company's troubles on Wall Street -- its shares are down 87% since 2020 -- it remains focused on growing its business and diversifying it.
One company that it has a history with, Zenabis, recently filed for protection from creditors, and the ever-opportunistic management team at Sundial is looking at scooping up the assets of its struggling cannabis peer.
On June 20, Sundial issued a press release stating that it had entered into a bid agreement to potentially acquire the assets of Zenabis including its shares. Zenabis produces medical and recreational marijuana and has multiple facilities across Canada, with a cultivation capacity of more than 110,000 kg. One asset that Sundial is particularly keen on is a 380,000-square-foot growing facility in the Canadian province of New Brunswick. It's of key importance because it has good manufacturing practice (GMP) certification from the European Union, so ownership of the site could allow Sundial to export products to the EU and the U.K.
Source Fool.com
