Hey there,
Like most in the Cannabis industry, Sundial is not yet profitable. The problem wtih the entire industry is that supply has outstripped demand since legalization too place. This let to big valuation resets across the board.
Consolidation is good for the space, as there were way too many players that rushed to the scene. The Alcanna deal is unique since it is the largest private liquor retailer in Canada, so that adds a unique angle to the company. Using their distribution expertise to help drive similar results in the Cannabis industry. It also the majority shareholder of Nova, and combined SNDL will have more than 170 cannabis locations.
The key is...will it deliver the 15M in promised EBITDA synergies. Sundial is still sitting on negative ebitda of -241M on a TTM basis so while 15M is nice, it is but a small step towards profitability. SNDL is not exactly cheap either...trading at 27 times sales. I don't think next quarter's results are really going to make or break the long-term thesis. What will is if they can hit their targets, in Fiscal 2022 and 2023 post Alcanna acquisition. Analysts are currently calling for positive EBITDA next year, so it'll be key to watch how the year shapes up and if it can be profitable.
Mat