The cannabis investing fad of the year has no doubt been Sundial Growers (NASDAQ: SNDL) . A beaten-down cannabis player with a low share price -- which is not to be confused with low valuation -- Sundial recently caught the attention of the Reddit army, who came together and pushed the penny stock up as much as 500% at one point. Today, Sundial shares are still up 223% on the year.
To Sundial's credit, management quickly capitalized on the opportunity, going out and selling equity shares to raise capital, and now sports a whopping $610 million of balance sheet cash as of the most recent disclosure on Feb. 4.
Despite the nice cash infusion, the increase in shares gives Sundial and market cap of $2.4 billion – not exactly small. In addition, Sundial really needed the cash; its operating performance in the most recently reported third quarter was dismal, with declining revenue and negative gross margins.
For further details see:
3 Small-Cap Cannabis Stocks That Are Better Bets Than Sundial