What happened
Shares of Sundial Growers (SNDL -3.38%) climbed on Monday after the cannabis producer announced a new product launch. By the close of trading, the popular marijuana stock's price was up 3.9% after rising as much as 15.8% earlier in the day.
So what
Sundial Growers launched a line of premium concentrates under its Top Leaf brand. Sundial's new products will contain solventless cannabis extracts that are obtained without the use of harsh chemicals. Top Leaf products also contain no additives, fillers, or artificial flavors.
"We made a strategic decision to produce these premium products based on demand for solventless, flavorful, pure, and potent cannabis concentrates from a growing group of consumers," Sundial President and COO Andrew Stordeur said in a press release. "Our control of the entire manufacturing process from cultivation to extraction enables us to deliver premium quality products on a consistent basis."
Sundial Grower's stock popped on Monday. Image source: Getty Images.
Sundial's solventless Top Leaf concentrates are now being sold in British Columbia and Alberta. The company plans to roll them out across Canada later this year.
Now what
Sundial is ramping up its branded retail offerings, which tend to enjoy higher profit margins than wholesale items. When combined with its cost-reduction program and now debt-free balance sheet, this new product strategy has the potential to advance Sundial's progress toward sustained profitability.
