BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces an investigation on behalf of Sundial Growers Inc. (“Sundial” or the “Company”) (NASDAQ: SNDL) investors concerning the Company and its officers’ possible violations of federal securities laws.
On August 1, 2019, Sundial closed its initial public offering (“IPO”), in which it sold 11 million shares at $13.00 per share for gross proceeds of $143 million. In the Registration Statement for the IPO, the Company stated that it produces “high-quality, consistent cannabis.”
On August 14, 2019, cannabis producer Zenabis Global Inc. (“Zenabis”) revealed that “[c]ertain third-party producers failed to supply saleable cannabis in line with contractual obligations. Due to quality issues, Zenabis had to return or reject a total of 554 kg of cannabis from a third-party.”
On August 19, 2019, MarketWatch published an article stating that Sundial had sold the cannabis to Zenabis. The article also stated that the cannabis was returned “because it contained visible mold, parts of rubber gloves and other non-cannabis material, according to people familiar with the matter.”
The same day, the Company confirmed that it was resolving an “isolated immaterial matter between Sundial and [a] Licensed Producer.”
Since the IPO, Sundial’s shares have traded as low as $7.86 per share, or nearly 40% below the $13 IPO price.
If you purchased Sundial securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at 215-638-4847, toll-free at 888-638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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