The shares finished down 35% at $8.48. Sundial debuted at $13 a share, in the middle of its target range of $12 to $14 a share. The company raised $143 million at the $13 price.
The regulatory breach at CannTrust (CTST) - Get Report that led to the firing of that company's CEO is making investors nervous and led to the volatility that pushed down Sundial's stock, Sundial CEO Torsten Kuenzlen told Bloomberg in an interview.
CannTrust suspended sales and shipments of all of its cannabis products last month and said it was appointing a committee of independent directors to investigate problems at the Canadian supplier of medical and recreational cannabis.
Canadian authorities found the company's greenhouse facility in Pelham, Ontario, to be "non-compliant." The authorities placed a hold on 5,200 kilograms of dried cannabis that was harvested from five unlicensed rooms at the location.
Sundial operates five facilities: two in Alberta and three in the U.K.
Cowen, BMO Capital and RBC acted as joint bookrunners for Sundial's debut.
Meantime, a number of other cannabis stocks declined: