RE:RE:Sundial ...Valens raised $46 million on June 1
used the money to buy Green Roads June 21
Used the money to buy CS Aug 31
Both at very attractive multiples. If this is Dilution, I'll take it.
Sundial annouced 10% ownership Sep 21
No nefarious plots here. Plus Sundial has other pressing issues which cannot be solved with US legalisation. I'm more worried that they have to dump the shares all at once to meet debt covenants.
VLNS has arranged for a $40 million line of credit with few covenants, which may be convertible. It provides finacial flexibility. This does not mean that they will use it. If you get a HELOC, you don't automatically max it out.
If they buy something that adds to their product offerings, like GR and CS, I do not find this capital raise to be automatically and in all circumstances dilutive. Small percentage sales of a wider range of products is a safer strategy than waiting for volume in the present environment