Fans of Sundial Growers (NASDAQ:SNDL) are smiling this morning, and for good reason. The Canadian marijuana company announced that it had yet again avoided being delisted. As a result, shares of SNDL stock are up over 10% as Sundial lives to see another day on the Nasdaq exchange.
SNDL Stock: Sundial Avoids Delisting
Previously, Sundial had until Feb. 7 to reach $1 for 10 consecutive days in order to stay listed on the Nasdaq. The Nasdaq gave Sundial this notice last August. However, Sundial was unable to achieve this request.
Now, the Nasdaq has given Sundial another chance to reach $1 for 10 consecutive days, this time until Aug. 8. The marijuana company has given written assurance to Nasdaq that it will review all available options to comply with the $1 price requirement. In addition, Sundial has not ruled out a reverse stock split as one of its compliance options.
This isn’t the first time that Sundial received a delisting notice. Nasdaq gave Sundial a similar notice in late 2020, although Sundial managed to stay above $1 for 10 consecutive days to avoid delisting. Furthermore, Sundial announced a share buyback last November in an attempt to increase its stock price. The company received approval from its board to purchase up to 102.8 million shares, or 5% of all shares outstanding. The share buyback was an effort to consolidate the number of shares available after Sundial incurred massive share dilutions in 2021.
What’s Next For Sundial?
With Sundial currently trading just below 60 cents, SNDL stock would have to almost double in 180 business days to remain compliant. Last year, Sundial was able to balloon to a 52-week high of $3.96, fueled by speculative participants on r/WallStreetBets. However, the popular subreddit has since lost much of its momentum, with many of its members discouraged by recent market action and the enforcement of rules by moderators.
Additionally, Sundial is currently working to close its acquisition of Alcanna (OTCMKTS:LQSIF), a Canadian retailer of alcoholic and marijuana products. Alcanna operates over 230 retail locations and is believed by Sundial CEO Zach George to have “strong potential.” The acquisition will likely close during the first half of this year.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.