Reddit’s favorite marijuana stock Sundial Growers (NASDAQ: SNDL) announced last week it will buy Canadian liquor retailer Alcanna Inc. for roughly $346 million. Apart from Alcanna's longstanding liquor business with trailing 12-month free cash flow of $16.4 million on a built-out retail platform, the acquisition brings Sundial enhanced exposure with an investment in Nova Cannabis Inc. (TSE: NOVC), a publicly listed, pure-play cannabis retail operator in which Alcanna holds an approximately 63% e
Canadian-based cannabis company Sundial Growers (NASDAQ: SNDL) has been busy this year. The latest move came this month when it announced the purchase of retail company Alcanna (OTC: LQSIF), which operates 171 liquor stores in Canada (most of which are in Alberta -- Sundial's home province). This move further diversifies Sundial's existing operations and gives it yet another source of revenue.
A lack of cash flow is a big problem in the cannabis sector. Canada-based cannabis company Sundial Growers (NASDAQ: SNDL) is loaning out money to a marijuana producer at a high-interest rate that could generate millions in additional income for its business over the next few years. In February, Sundial invested 22 million Canadian dollars in cannabis edible producer Indiva.