Shares of Sundial Growers (NASDAQ: SNDL) climbed 28.5% on Tuesday, as investors’ enthusiasm for marijuana stocks reached a fevered pitch.
Cannabis stocks entered the week with momentum after Virginia passed bills on Friday that could pave the way for marijuana to be legalized in the state. The trend toward legalization remains a key potential growth driver for companies like Sundial, which have taken steps to expand into the potentially massive U.S. cannabis market.
Following its recent stock offerings, Sundial has built up roughly $615 million in cash reserves. Management has suggested that it could allocate some of this cash toward acquisitions, as a means to accelerate Sundial’s move into the lucrative U.S. market.