Due to a post-reverse-stock-split slump, shares of this cannabis stock continue to drop

HUNG HOM, Hong Kong - Oct. 3, 2022 - PRLog -- On the other hand, it may persuade you to assume differently. SNDL's stock price began about 833% higher on Tuesday than it did on Monday.

However, this seemingly massive increase was solely the product of a 10-for-1 reverse stock split. At a special meeting convened on Monday, SNDL shareholders unanimously approved the share consolidation. Following the completion of the shareholder meeting, the company's board of directors promptly initiated the reverse stock split.

Today's drop (adjusted for the reverse stock split) appears to indicate ongoing doubts about SNDL's near-term prospects.

SNDL's reverse stock split was required in order for the company's shares to be listed on the Nasdaq, Inc. (NDAQ) stock market. The bid price for shares must close at or above $1 for 10 consecutive trading days, according to NDAQ.  SNDL was alerted by the stock market on August 9, 2021, that it was not in compliance with this rule. SNDL's shares will not be delisted by NDAQ as a result of the reverse stock split.

The Canadian cannabis operator was supposed to be back in compliance by February 7, 2022. SNDL, on the other hand, received a 180-day extension from NDAQ. The new deadline of August 8, 2022 for restoring compliance with the minimum bid price rule was approaching quickly.

SNDL avoided delisting through a 10-for-1 reverse stock split. However, the underlying causes for its stock's steep decline, including difficulties in the Canadian cannabis sector, remain unresolved.

Another modification has resulted from the extraordinary shareholders meeting. Sundial has changed its name to SNDL Inc. More information regarding the company's rebranding initiatives will be provided in its second-quarter statement in early August.

Lakefield International considers best-in-class reporting, risk transparency, and investment accounting technology to be equally as important as performance, you may visit us at our website https://lakefieldinternational.com/ or contact us via email.