Sundial, a major cannabis producer, has allegedly been dishonest in its acquisition of a British company that could “almost immediately” begin exporting hemp and CBD goods to the European Union.
In 2020, Sundial finalized the sale of British company Bridge Farm – a deal that was plagued with tedious delays. Soon after, a team of investors filed a lawsuit against Sundial and sought damages exceeding $7 million.
After the case was filed, a judge dismissed it, claiming that the cannabis producer’s conversations regarding European hemp and CBD exportation were “accompanied by meaningful cautionary language.”
Moreover, the New York-based federal judge stated that Calgary, Alberta-based Sundial does not maintain responsibility for the investors’ losses.
Sundial Growers Inc. identifies as a pharmaceutical company. Currently, customers across the Canadian landscape are served by Sundial Growers.
The Company prides itself on growing and producing a broad spectrum of cannabis strains, in addition to a plethora of cannabis derivative products.
Sundial is among the most well-known cannabis stocks. It ranks alongside high-trading stocks like Aurora. Traders and investors can find shares of Sundial on the Nasdaq under the ticker “SNDL“.
Sundial’s foray into the CBD segment of the market demonstrates its desire to capitalize on what is becoming one of the most in-demand cannabinoids among medical consumers.
The CBD industry is expanding on a global scale
Cannabidiol (CBD) can be extracted from cannabis or hemp. However, it is usually extracted from hemp due to the fact that hemp is naturally higher in CBD content. Unlike its psychoactive cousin tetrahydrocannabinol (THC), which is extracted from the same plant, CBD does not cause mind-altering effects.
So far, more than 114 cannabinoids have been identified by scientists. Nonetheless, CBD takes the lead for its therapeutic power.
Research is currently limited due to the DEA’s restrictive stance on cannabis research. However, efforts are being made to promote scientific investigations into this non-psychotropic cannabinoid.
The global CBD market is forecast to grow at a compound annual growth (CAGR) rate of 21.2 percent between 2021 and 2028. Analysts predict that the market will be worth USD $13.4 billion by 2028.
The market is continuously evolving thanks to CBD’s rapid adoption in various mainstream avenues, including food, pharmaceuticals and cosmetics. As more research is carried out into the cannabis-derived compound, it’s likely that we will continue to see the market grow, as well as witness more states introducing sweeping medical cannabis laws that embrace the use of this powerful therapeutic powerhouse.