So make sure you guys stick until the end of this video, so you guys are up to date on everything that is going on with this canadian cannabis company we’re also going to go over some of the more recent merger and acquisition news for sundial growers and The reasons why i think that sundial is nowhere near close to finishing or being done with all of their acquisition and equity investment activity. So before we get into all of that information, if you guys would like to earn two free stocks with weeble valued up to 1850. – and this is a great way to help support the channel. If you guys would like as well, because when you guys set up an account and deposit, i also get a free stock when you guys receive your two free stocks. So if you guys are interested in that make sure you check out that link down. In my description, but if you are not interested at all, that is perfectly okay as well, and if you guys enjoyed the information that i provide for you in this video make sure you go down and hit that like button and hit the subscribe button and turn On that notification bell so you’re notified every time i post a new video, so you get to stay up to date on all of your favorite stocks, learn about a couple of new ones and see exactly which options i am trading and which strategies i am using To trade them so at the current time that i am recording, this video sundial growers has concluded the after hours trading period and is down about 0.
9, but then bounced up the same percentage amount, even though it really wasn’t the same dollar amount in the after hours Trading period, but this right here is showing the same: uh actual dollar amount. They went up, uh down a cent during the trading trading day and then up a cent in the after hours trading period. So sundial growers has seen a massive sell off after their significant run up and and we could see another run up in sundial growers. But this really all hinges upon the overall cannabis market as a whole and legislation that we could be getting in the united states, which i’m going to go over in this video as well. So let’s briefly touch on this legalization legislation, so coming over here, cuomo legislature reached deal for marijuana legalization in new york, so this happened on march 24th, so this was about a week ago. So governor cuomo and legislative leaders have reached an agreement on a bill that would legalize recreational marijuana in new york. Now, even though sundial growers is a canadian cannabis, company legalization in the united states would significantly help their business because they would be able to provide more sales in the united states and, if all of the other cannabis stocks are getting a bump in the market, uh Odds are that sundial growers as an investment would increase in value as well now let’s get into some of this merger and acquisition news. So i have been calling for sundial growers to uh really get into the merger and acquisition uh field in 2021.
Now we’ve heard them talk about it a little bit, but it makes a lot of sense for them to do this, so we can see right here that the merger and acquisition activity in the cannabis industry could reach 2 billion dollars this year. There has been a lot of mergers uh in strategic investments throughout the year, and we are not even close to done with the year yet. So we could see a two billion dollar merger and acquisition market in cannabis this year, which could be very big for not only sundial growers but the cannabis market as a whole. Now, some of the reasons why i think sundial growers is going to be engaging in these types of activities is, we are looking right here at the use of proceeds, section scrolling back up from their most recent shelf offering. So if you guys did not know, essentially what a shelf offering allows a company to do is they register a certain amount of shares with the sec and they are able to uh withdraw from this shelf a certain amount of shares from time to time to issue On the open market, without them actually having to file each and every time so scrolling down a little bit further, we can see in this use of proceeds section we can see. We intend to use the net proceeds if any from the offering for the financing of possible acquisitions, of or investments in equipment facilities, assets, equity or debt of other businesses, products or technologies, and for our working capital in general corporate purpose purposes.
Now they say here that we have not identified any single material use for which we intend to use the nap proceeds, so the net proceeds from the offerings, if any, are not determinable in light of the nature of the distribution. The reason why they include this is because they do not know the amount of shares that they’re going to offer from time to time or at any given price. They really have to figure that out once they are planning on actually uh initiating these offerings. Now you might be saying well, this is kind of far fetched. We see this a lot in these use of proceed, sections of shelf offerings and direct offerings, but when you come over here, we can see that sundial growers has engaged in two strategic investments and acquisition opportunities over the past two months. So we can see this one right here: sundial and indiva announced 22 million dollar strategic investment which sundial is giving to indiva. So what is essentially going on here is that sundial growers wants to get into the edibles market. You can read through this, but essentially what they’re doing is we can see. We are delighted to welcome sundial as a strategic investor in indiva the capital from this 22 million dollar investment significantly approved, improves in divas balance sheet, expands our working capital and provides the resources necessary to support long term strong growth in our business, and we can see Sundials response sundial is pleased to support the development of indivis high quality products.
This transaction broadens our exposure to the rapidly expanding cannabis edibles category, so sundial growers is kind of engaging in if you can’t beat them join them, so so sundial really is getting their arm into a lot of different places, which i think is very bullish for the Company in the long term, now, when we come over here, this is the second form of strategic investment that sundial growers has engaged in. So sundial and saf group announced strategic capital partnership, so the joint venture will leverage a strategic financial and operational partnership to generate asymmetrically enhanced risk return opportunities in the cannabis industry to provide exposure to a portfolio of attractive debt, equity and hybrid investment. So the initial commitment from sundial is going to be a hundred million dollars. This is big and sundial has a significant amount of cash on their balance sheet. They’Ve significantly reduced their debt and they are planning on raising more money in the future and their sec filing directly says that they are planning on using these proceeds for investment. So this is big news for sundial growers going forward now let’s get into this citadel situation, because it is very interesting and very comparable to what is going on with amc at the current time. So there’s been a lot of talk about dark pools, non ats data over the counter trading, so let’s explain this in full. So we can see this is going to be the over the counter non ats data details for sundial growers, and we can see that citadel securities is listed at the top, with a volume traded of almost 3 billion shares in the last period.
Now this does not specify whether these shares were bought, sold or even being held at the current time by citadel, as you guys know, that citadel is a market maker and a clearing house for robin hood and a lot of these other brokerages. So a significant portion of these shares traded, which that’s what this is essentially representing, it’s the total amount of shares traded, whether they are bought or sold, and they were going through citadel now, it’s also possible that a significant portion of these shares is also a short That they said that citadel has or a subsidiary of citadel has now at the current time, market beat lists sundial growers short interest at about 10, but, as i’ve said in my uh, a lot of my videos, these companies with high short interest in the difference in The data that we see across all of the different data sources – and then we come over here and see that on the over the counter market citadel, is trading at such a high volume. I don’t think that these short interest numbers are correct and right now we are seeing a lot of hedge funds uh, actually one in particular it’s going to be archigos, is kind of defaulting and getting margin called and getting their positions forcefully liquidated. Now, if another hedge fund comes out and gets forcefully liquidated and needs to cover their positions, and they have a short on something like sundial growers, amc or gamestop, it is going to be an explosive move for these companies.
Now we don’t know when this could happen or if it even could happen, you guys just need to know the possibilities of what could happen with these shares that you are owning, so this non ets data excludes the dark pools, so let’s take a look at it. Exactly what is going on with the dark pools, so this is going to be the alternative trading systems. Data now dark pools are an alternative trading system. So this right here we can see that ubs. This is their dark pool and we can see right here cross cross finder. This is actually credit suites and they are the biggest dark pool in the world, with about 5 million shares traded. The key thing about looking at this data – the most important thing that you need to keep in mind, is that we don’t know what it means now. What i mean by that is that we don’t know if these are shorts uh, if these are trades being executed. On behalf of others, or if they’re just trades, that these institutions are making and that’s what makes it, in my opinion, so important, because there’s no reason for all of these different institutions to be trading in these dark pools and the over the counter markets. Unless they were trying to hide something from the public eye, because that’s essentially what these are for, when you make a dark pull trade or an over the counter market trade, there are a significantly lower amount of parties that know about this trade and dark pools.
It’S. Actually, zero, the only people that know the trade is occurring are the people making the trade themselves in typical otc data. There is going to be about two parties that know about the transaction, because there are two people coming together having a meeting of the minds deciding on a price and executing the trade now it’s, slightly different from dark pools and dark pools are a little bit more Suspicious but we are seeing a lower volume in these dark pools here. So this is very interesting to know, and it explains to me and kind of shows that the short interest for sundial growers could and probably is much higher than we are seeing on. All of these other data sources, now sundial growers previously had an extremely high short interest. Now. What could be occurring is that all of these hedge funds are self reporting their short interest and they can lie. They can just come out and blatantly lie to uh finra and the sec uh, because the the fines for actually misrepresenting the short interest data are so minuscule. We saw citadel last week get hit with a 275 000 fine and in the big scheme of things that is pennies to an institution like citadel. So it is actually in their best interest to lie to these institutions because of the amount of money that they are going to be saving from their over leveraging in all of these positions. So that is going to wrap up this update on sundial growers.
Again, as i always say with these penny stocks proceed with caution, but i am not a financial advisor. Nothing i say in these videos is financial advice. These are for educational purposes, and only so you guys can do whatever you would like with your money. I’M. Just here to give you guys the most up to date, information and provide my analyses on what is going on in the market right now, and it is a lot. There are a lot of things occurring right now and it is helpful to stay up to date to know and kind of uh get a better idea of what is actually actually going on behind the scenes. So again, if you guys would like to earn those two free stocks with weeble and help support the channel make sure you check out that link down in my description below and if you enjoyed the information that i provided for you in this video make sure you Go down and hit that like button and turn on that notification bell once you subscribe to this channel and join our family, so that is going to be it for this video.