Another loss and another losing week for the stock of NASDAQ: SNDL brought an exciting week in the cannabis sector to a close. Shares of SNDL fell 7.55 percent more on Friday, closing the day’s trading at $0.31.
All in all, equities had a down day as a tech sell-off to end the week reversed the week’s earlier advance. Following Snap’s (NYSE: SNAP) discouraging earnings call on Thursday, adtech-related equities fell. The S&P 500 and NASDAQ also fell 0.93 percent and 1.87 percent, respectively, while the Dow Jones fell 137 basis points overall.
Cannabis stocks rose earlier this week following news that a federal legalization bill would be submitted to the Senate for a vote soon. Stocks lost those gains when the Democrat-led package was made public because investors recognized it was unlikely to win a Senate vote. Investor sentiment has clearly shifted back to the sector’s detriment, as companies such as Tilray (NASDAQ: TLRY) prepare to report second-quarter earnings next week.
Canopy Growth (NASDAQ: CGC) and Sundial, which will report the week of August 10th, are two other companies that will report in the coming weeks.
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Sundial Stock Price
Due to a lack of a quorum, Sundial Growers stated it had to adjourn its special shareholder meeting. It was decided during the meeting whether to consolidate Sundial’s shares at a ratio of 1 for 10 or 1 for 25. The meeting has been postponed for the time being till Monday, July 25.
Also read-Are Marijuana Stocks On Cash App?
SNDL Stock and Reverse Stock Split
The SNDL stockholders who attended yesterday’s annual meeting of Sundial authorized a reverse split. The shareholders specifically approved the exchange of one share of stock for every 10 to 25 outstanding shares of the corporation. Reverse splits drastically reduce the number of outstanding shares, which results in a significant boost in the share price following the transaction.
The board of Sundial voted late yesterday afternoon to implement a 1-for-10 reverse stock split, which led to a rise in the stock price of the company of about 820 percent today. However, after adjusting for the split, it is declining by roughly 14%.
Sundial has declared that the company is pursuing a reverse split in order to return to compliance with Nasdaq’s $1 minimum bid price rule, as mentioned by InvestorPlace Assistant News Writer Eddie Pan in his post from July 21.