Sundial Growers Inc. (SNDL) is taking best practices from consumer packaged goods and applying them to the cannabis industry. Their experience and investments make them a 420DC Hot Weed Stocks pick to watch.
Sundial has a knowledgeable and talented management team, including industry leaders with experience in consumer packaged goods (CPG) from companies like Kellogg’s, General Mills, Molson Coors, Conagra Brands and Mars.
Through strategic partnerships and marketing efforts, Sundial learns more about how cannabis can improve health and wellness, and shares this information with consumers, helping them make more informed choices.
Sundial, one of the oldest and largest Canadian cannabis companies, has several large facilities including two in Alberta and one in Merritt, British Columbia. As they grow and invest, their future also appears to look up as a 420DC Hot Weed Stocks pick.
Sundial’s flagship facility mainly grows craft cannabis at scale for the Canadian market. This facility uses purpose-built modular rooms for the cultivation of high-quality, small-batch weed, optimizing light, temperature and humidity of each “pod” for the specific strain being grown. By late 2020, the Olds facility was producing ~60 million grams of cannabis annually.
Rocky View, Alberta
Sundial’s original facility in Rocky View has been transformed into an advanced research and development operation. There they test new cultivars with different nutrients, lighting and other growing conditions. Once testing is complete, the best cultivars are selected and sent to their primary growing facility in Olds, where they are added to Sundial’s product line. Rocky View also holds a licence for processing and sales, and they perform all final quality assurance, packaging and shipment of products from this facility.
Merritt, British Columbia
In January 2019, Sundial purchased 20 acres of land zoned for cannabis production in the industrial park on the north side of the City of Merritt, B.C. Construction on the first phase of the facility began in Spring 2019. Products grown there, including their popular BC WeedCo. brand, are sold to the B.C. Liquor Distribution Branch for sale to consumers in British Columbia.
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Shares of the company stock have rocketed lately for good reasons. The Canada-based cannabis company recently announced an agreement with SAF Group to form a joint venture, SunStream Bancorp Inc. This 50/50 joint venture (JV) to create the world’s first cannabis-oriented bank of sorts, creating investment opportunities in the cannabis industry.
SunStream Bancorp Inc. will provide exposure to debt, equity and hybrid investments. The first order of business is forming a special opportunities fund, with commitments from third party limited partnerships with an initial commitment of $100M from Sundial.
SunStream will enable Sundial to remain focused on its core operations, while leveraging the strength of SAF’s private equity and credit investment expertise on a global scale.
Weed Stock to Watch
Sundial Growers Inc. isn’t the biggest Canadian concern but they are far from the least. Their recent JV to create SunStream Bancorp Inc. will give allow Sundial’s $100M investment to flourish as they stick to growing and packaged goods while their JV partner handles the investment side of the new venture.
It’s strategic partnerships as well as profitable mergers and acquisitions which will propel Sundial Grower’s forward, letting their core operations grow as their investments help the larger cannabis industry grow as well. Partnerships, investments and growth are why Sundial Grower’s is a 420DC Hot Weed Stocks pick.