SNDL Stock News: Sundial Growers jumps higher as investors applaud Zenabis bid

NASDAQ:SNDL kicked the shortened Juneteenth week off with a major bid for consolidation in the Canadian cannabis industry. On Tuesday, shares of SNDL surged by 12.77% and closed the trading day at $0.35. Tuesday was one of the strangest performances from Sundial in recent memory, a downward trend that has seen the stock fall by 43% year to date.

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US stocks were flying out of the long weekend, as all three major averages rebounded from the worst trading week since 2020. The Dow Jones regained 641 basis points, the S&P 500 jumped higher by 2.45% and the NASDAQ added 2.51% during the session.

On Monday, when the US markets were closed, Sundial announced that it had placed a stalking horse bid for the assets and capital of Zenabis. The now bankrupt subsidiary of Hexo (NASDAQ:HEXO) would provide Sundial with some crucial production capital, and a facility that would provide the company with upwards of 46,000 kilograms of dried cannabis on an annual basis. Investors are excited that Sundial is making aggressive moves to consolidate the Canadian sector, and showed that enthusiasm with over 113 million shares of SNDL trading hands on Tuesday.

Sundial stock forecast

Some promising news for the beleaguered Canadian cannabis sector as Statistics Canada revealed that April cannabis sales were higher on both a year over year and sequential monthly basis. In April, the country saw a modest 3.7% sequential rise in cannabis sales, reaching a total of $372.4 million CAD. Although it is a subtle increase, it is still a good sign for an industry that has been struggling to increase sales. The May monthly figures will be released at the end of July.

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