LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”), a national investors rights law firm, announces that a class action lawsuit has been filed on behalf of investors that purchased Sundial Growers Inc. (“Sundial” or the “Company”) (NASDAQ: SNDL) securities pursuant and/or traceable to the registration statement and related prospectus (collectively, the "Registration Statement") issued in connection with Sundial's August 1, 2019 initial public stock offering (the "IPO" or the "Offering"). Sundial investors have until November 25, 2019 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, at 310-201-9150, Toll-Free at 888-773-9224, or by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com.
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 “produce 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.
The complaint filed in this class action alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Sundial failed to supply saleable cannabis in line with contractual obligations to Zenabis Global Inc.; (2) that due to material quality issues, Zenabis had to return or reject a total of 554 kg of cannabis to Sundial, valued at approximately U.S. $1.9 million (C$2.5 million); and (3) that as a result, Textron’s positive statements about Arctic Cat’s business, operations, and prospects lacked a reasonable basis.
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If you purchased Sundial securities pursuant and/or traceable to the Registration Statement, you may move the Court no later than November 25, 2019 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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