Why Sundial Growers Stock Dropped 5% Lower Today

Shares of Canadian cannabis company Sundial Growers Inc. SNDL fell more than 5% in the extended session on Thursday.

What Happened: The Reddit favorite company reported second-quarter net loss of CA$52.3 million that narrowed from CA$60.4 million in the year-ago period.

Excluding an asset impairment charge on the Olds facility of CA$60.0 million, net income for the quarter would have been CA$7.7 million, the company noted.

Net revenue for the quarter was CA$14.86 million. Of this, net revenue for the cannabis segment was CA$9.15 million but it missed analysts’ consensus revenue estimate of CA$9.43 million.

Adjusted EBITDA loss was CA$200,000. In the preceding first quarter, Sundial had reported positive adjusted EBITDA for the first time since the company’s inception.

See Also: Are Sundial Growers Shareholders About To Get Burned?

Why It Matters: Sundial Growers is a frequently mentioned stock on Reddit’s r/WallStreetBets forum that has 10.7 million members.

The retail investment forum is best known for driving up shares of heavily-shorted companies such as GameStop Corp. GME and AMC Entertainment Holdings Inc. AMC earlier this year.

Sundial’s shares peaked in February amid heightened retail interest, but have fallen notably since then. Taking advantage of the investor interest, Sundial said in January it is raising $100 million through a sale of stock and warrants. But the fundraising caused massive stock dilution.

About 15.3% of Sundial’s float is held short, as per the latest available data from Yahoo! Finance.

Price Action: Sundial Growers shares closed almost 2.4% higher in Thursday’s regular trading session at $0.8260, but declined 5.3% in the after-hours session to $0.7820.

Read Next: Sundial Vs. Tilray Vs. Aurora Cannabis: Which Retail-Favorite Cannabis Stock Gave Best Returns In First Half Of 2021?