VLNS - Why SNDL Stock Flew as High as 5% on Tuesday
SNDL (NASDAQ: SNDL) investors enjoyed a nice high early on Tuesday, with their stock rising by over 5%. That buzz didn't last, though, and by the end of the day SNDL crashed to a 1% decline at market close. The initial euphoria was related to one of the acquisitive Canadian marijuana company's recent asset buys.
Tuesday afternoon, The Valens Company (NASDAQ: VLNS) announced that the Ontario Superior Court of Justice granted a final order approving its absorption into SNDL. This was the final key step for the deal to be approved.
Eager for expansion, SNDL agreed to purchase Valens last August in an all-stock deal valued at roughly 138 million Canadian dollars ($102 million). The non-cash nature of the buy was a neat way for SNDL to keep its balance sheet clean; in its announcement that it was purchasing Valens, the company didn't hesitate to mention that the combined business would boast CA$314 million ($231 million) in net cash, and zero debt.
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Why SNDL Stock Flew as High as 5% on Tuesday