Why Sundial Growers Stock Plunged and Then Rebounded Today
Shares of Sundial Growers (NASDAQ: SNDL) fell on Friday morning after the marijuana producer announced warrant exercises and a new issuance. Sundial's stock rallied later in the day; by the close of trading, its price was up 5.5% after falling as much as 15.9%.
Holders of roughly 98.3 million warrants will convert them into shares at prices of $0.80 and $1.10. Sundial, in turn, will receive $89.1 million in cash. In exchange, Sundial is issuing an additional 98.3 million warrants, which will give these holders the right to purchase shares at an exercise price of $1.50 over a 42-month period.
Sundial Growers' stock ended Friday on an upswing. Image source: Getty Images.
Source Fool.com
