The company’s share value is on the rise as it strengthens its position in Valens
The stock market saw some significant rises in cannabis stocks in recent days. However, one of the most notable has been Canadian cannabis stock Sundial, which on Tuesday morning was impacted by a 5% rise. According to experts, this performance came after the company began a new chapter in its growth. As is well known, Sundial completed the acquisition of The Valens Company.
Two days ago, the company reported that it had completed all the necessary paperwork to finalize its purchase of The Valens, kicking off a new growth strategy that could generate more than a billion dollars a year in revenues. At the end of 2021, Sundial first announced that it had acquired a 10% stake in the Canadian marijuana processing products and services company.
Then, about five months ago, Sundial made it clear that it planned to buy the remainder of The Valens that it did not already own. The completion of this move signifies the conclusion of a turnaround in Sundial’s two-year business strategy to develop an investment platform alongside its marijuana segment.
That the company’s stock is back on the rise is certainly good news for investors, especially since it has suffered a nearly 60% drop in the last year after diluting shareholders to raise money in recent years. Many of the investors involved are hopeful that this will mark a new beginning for the firm’s business and share price now that a new year has begun.