Sundial Growers Is Up 250% In A Month Don’t Buy скачать в хорошем качестве

Sundial Growers Is Up 250% In A Month Don’t Buy

In the last month, shares of Calgary, Alberta-based cannabis purveyor, Sundial Growers, have soared 250% to $2.47 in midmorning trade on February 10As someone who has no financial interest in Sundial securities — 6.87% of which were sold short at the end of January, according to the Wall Street Journal — they are not my cup of joe. As I wrote a month ago, Sundial shares — which then traded at 68 cents apiece — have a very high average daily trading volume over the last year — 69.2 million — for a company whose stock was until recently trading below $1. Since then, I see three reasons that things have improved for Sundial:Here is a summary of Sundial’s business and key developments since it went public in the summer of 2019 about which I wrote last month. Sundial Growers produces and distributes marijuana “flowers, pre-rolls and vapes.” Sundial went public on August 6, 2019 — selling 11 million shares for $13 a share. Sundial suffered from weak quality control. According to MarketWatch, on August 20, 2019 another Canadian cannabis company, Zenabis Global, disclosed that “it had returned a half-ton of pot and terminated its agreement to buy cannabis from a ‘third party’ that it did not name.”The $1.9 million batch — which was of “poor quality and contained bits of rubber,” according to MarketWatch — was produced by Sundial, according to allegations in an October 2019 class action lawsuit. Sundial declined to comment, according to MarketWatch. Sundial got into trouble about a year ago. “In February 2020, the global pandemic was just emerging, Sundial was running out of cash just two quarters after its IPO, and we were in breach of covenants under the terms of our senior secured credit facility,” said its CEO Zach George. George restructured its balance sheet — reducing debt while diluting shareholders — boosting Sundial’s common shares outstanding by 527% to 840 million. Sundial’s revenues have been shrinking as its losses have remained elevated. For example, between the third quarter of 2019 and 2020, its revenues plunged 62% from $25.4 million to $9.7 million while its net loss improved — from about $74 million to $54 million during the period, according to the Journal. Sundial’s cash position appeared precarious at the end of September 2020. After all, its free cash flow for the quarter was negative $16.6 million and it sported $19.7 million in cash on its balance sheet at the end of the quarter. Sundial’s stock fell below $1 in spring 2020 and stayed there until the end of this January. Earlier this month, there was good news for the cannabis industry from Chuck Schumer. According to Dow Jones, on February 2, three Democratic senators promised to introduce legislation that would put an end to federal prohibition of cannabis. This news helped send cannabis securities up. All data is taken from the source: http://forbes.com Article Link: https://www.forbes.com/sites/petercoh... #sundial #newsyoutube #newstodayabc #newstodayinusa #usanewstoday #bbcnewstoday #