SNDL Shareholders Reject Reverse Split; Record C$20M Q3 Free Cash Flow and C$50M Buyback Planned
SNDL is trading near its 52-week low of $1.13 (6.3% above the low).
Summary
Shareholders voted down the reverse split needed to keep the Nasdaq listing, with only 54.1% support versus the required two-thirds. The company will not proceed with the consolidation. Management pivoted to capital return: preliminary Q3 free cash flow hit a record ~C$20M, though about C$10.6M came from unwinding a captive insurance arrangement rather than core operations. SNDL repurchased 21.8M shares for C$43.4M over the trailing year and is pursuing a substantial issuer bid of up to C$50M at a maximum C$1.92 per share, a 17.4% premium to the October 14 close. It also raised its indirect Parallel stake from ~67% to ~92% and agreed in principle with Ontario regulators on a $200K fine that would deconsolidate retail revenue. The Nasdaq compliance overhang remains unresolved without the split, and full Q3 results are due October 27.
At the time of this announcement, SNDL was trading at $1.20 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $297.8M. The 52-week trading range was $1.13 to $2.57. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.