Why Sundial Growers Stock Jumped, Then Dropped Today
Shares of Canadian pot grower Sundial Growers (NASDAQ: SNDL) jumped more than 8% in early Tuesday trading. But after giving back those gains, the shares were down 2% as of 10:30 a.m. EST.
The stock has been highly volatile recently as a target of trading with the Reddit retail trader crowd. But the company also released some news today related to its underlying business.
The marijuana grower announced an approximately CA$22 million stock and cash investment in Canadian edibles producer Indiva. The immediate reaction of existing shareholders seems to be that the investment isn't the use of capital investors were hoping for after several recent rounds of raising fresh capital.
Source Fool.com
