Sundial Growers Has Found a Way to Boost Its Cash Flow by $5 Million

A lack of cash flow is a big problem in the cannabis sector. Even though some marijuana producers might be generating strong sales numbers, many of them are unprofitable and are burning through cash. For investors, that's problematic because it often means share offerings, dilution, and a falling stock price.

Canada-based cannabis company Sundial Growers (NASDAQ: SNDL) is loaning out money to a marijuana producer at a high-interest rate that could generate millions in additional income for its business over the next few years. It could prove to be a great move for the company -- but is this meme stock still too risky to invest in right now?

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Source Fool.com