New Issues – IPOs: Yesterday marked the close of the Sundial Growers Inc [NASDAQ: SNDL] initial public offer. The company had offered 11 million common shares at $13 per share, and received proceeds of roughly $143 million. Following the completion of the process, underwriters now have 30-days to purchase an additional 1,650,000 shares. SNDL wants to use the money raised at IPO to construct and expand its cultivation and processing facilities. The company will also use part of the proceeds on maintaining its productive capacity.
About Sundial Growers Inc
Sundial Growers is a Canadian Cannabis producer offering common shares in both Canada and the United States. The company’s mission is to craft pioneering cannabis products to heal, help and play. It aims to take advantage of changing trends in which, Cannabis is turning into a consumer product. Presently, the company produces premium cannabis for the Canadian market. It’s the play aspect of its mission. The company intends to grow into the global CBD market – help aspect of its mission statement. It has already acquired farms to facilitate its move in this direction. Sundial is also working to build research capabilities into the use of Cannabis for treatment, as part of the healing component of its mission.
Going by its financials, the company recorded revenues of $1.50 million for the quarter ending March 31st, 2019. It’s a big improvement compared to the same period in 2018, when it did not record any revenues. Nonetheless, losses grew to $16.70 million, from $7.15 million.
Intra-day trading activity
As of yesterday’s close, Sundial Growers was trading at $13.00 and closed the day with gains of 11.11%. Its trading range for the day was between $12.00 and $13.09, while volumes stood at 2,180,774. Through the day, it made a series of higher lows, and established key support around the $12 range.