Shares of Sundial Growers (NASDAQ:SNDL) rose 6.7% on Friday after the cannabis company said it received approval to transfer the listing of its shares to the Nasdaq Capital Market.
The approval gives Sundial an additional 180 days to satisfy Nasdaq's compliance requirements, which include a minimum share price of $1. The transfer will go into effect on Dec. 15.
Sundial received notification from Nasdaq on May 12 that it had failed to meet its minimum bid price requirement. It was given until Dec. 28 to rectify the situation. The transfer will extend that deadline to June 26, 2021.
Sundial will regain compliance if its stock price remains above $1 for 10 consecutive business days before the new deadline. The cannabis producer said that if necessary, it would use a reverse stock split to bring its share price into the required range.
Sundial's stock price has plunged more than 90% since its initial public offering (IPO) in July 2019. The struggling cannabis grower posted a net loss of 71.4 million Canadian dollars ($55.9 million) in the third quarter.
Sundial CEO Zach George said that despite entering 2020 with a "challenged capital structure" and a "disparate business model," the company was progressing with its plan to adapt its cultivation operations and product offerings to Canada's rapidly evolving cannabis market.
"We firmly believe that the changes we've made to the business these past four months will position Sundial for future success," George said.