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Sundial Growers Slips After Filing for Securities Sale

Shares of Sundial Growers traded lower Friday after the cannabis company offered securities worth $200 million for sale.

Shares of Sundial Growers  (SNDL) - Get Sundial Growers Inc. Report dropped Friday after the cannabis company offered securities worth up to $200 million for sale.

The cannabis stock of the Calgary, AB., company dropped 6.66% to 72 cents at the last check. The company's stock has fallen 74% in 2020 to date.

In an F-3 Securities and Exchange Commission filing, the company said it would offer the sale of various securities in an amount of up to US$200 million.

The company's filing to the SEC has not been accepted yet. 

Separately, the company also filed a new at-the-market equity program worth up to $150 million.

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Sundial Growers said net proceeds from this new equity program if any would be used to pay off its debts, for financing any possible acquisitions or investments in, equipment, facilities, other businesses, products or technologies and for working capital and general corporate purposes.

Sundial Growers’ brand portfolio includes Top Leaf, Sundial Cannabis, Palmetto and Grasslands. 

Last month, Sundial Growers reported a 36% drop in third-quarter revenue to $12.9 million that disappointed investors.

"While our third-quarter revenue decreased, we are pleased with the demonstrated improvement in operating discipline, successful cost optimization initiatives and a material reduction of our debt," said Chief Executive Zach George.

"Following the announcement of our financial restructuring in June of this year, we have accelerated improvements in our operating practices targeting a sustainable cost structure and a simplified business model that will better enable us to focus on delighting consumers," George added.

Traders have been gravitating to marijuana stocks because the U.S. House of Representatives is set to vote on legalizing marijuana this week, reported Investor Place.