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Sundial Growers (NASDAQ: SNDL) had a handful of impressive trading days after winning the speculative cannabis game r / WallStreetBets, stocks just soared to above $ 1.30 Now SNDL stock is falling What’s behind the jump? And what else do you need to know now?

To the stranger, the Sundial Growers story has moved on over several weeks, the tiny cannabis game being exactly the kind of turnaround that is afoot in the industry, especially with Democrats running the White House and Congress as Election Day sparked a new wave of interest in marijuana, company growth sparked a new wave of interest in SNDL shares Confirmation that the company had paid off its debt seemed another guarantee of its success

Along the way, Redditors and other retail investors have taken SNDL stock to a new level, along with GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC), the subreddit piqued interest in Sundial Growers in the past 24 hours SNDL is one of WSB’s leading stocks The top posts ask if $ SNDL is going to the moon and urge readers to “Buy $ SNDL, It’s Going Up” Because of that interest, Sundial Growers have been temporarily exposed to trading restrictions on the Robinhood trading platform

If everything is going right for Sundial Growers, why are stocks falling today? Biden is in office, and the January runoff gave the Democrats control of the Senate, which should only bolster the case for cannabis reform and possibly federal legalization.Also, r / WallStreetBets has shown retail investors what can be done and a big rally in popular name raised

Well it looks like one of the reasons behind the collapse today is the general collapse of the Reddit bubble, however, there’s one other piece of news weighing on SNDL

What’s the news behind the slump in SNDL shares? Today, the cannabis company announced the completion of a $ 100 million secondary offering, in essence, Sundial brought in gross proceeds of $ 100 million from the deal, after paying the required fees, the company should get away with about $ 74 million From the deal this will bring the balance sheet to $ 615 million and the total number of shares outstanding to 1.52 billion

But what does this really mean for investors? Talk of a second offer quite often causes panic The sundial growers move is watering down, offering units below the current retail price, but this doesn’t necessarily mean it’s a bad thing. Instead, there is an argument to simply consider this a wise move To capitalize on new investor interest in SNDL stock Powered by r / WallStreetBets, this could be a great chance to raise money, prop up the balance sheet, and keep pushing for growth, similarly we have moves from AMC and Naked Brand (NASDAQ: NAKD) seen to do the same

Be on the lookout for more news from Sundial and more information on how this money is working.This long-term potential is why contributor Faisal Humayun views SNDL as an undervalued stock that could go higher soon

At the time of this writing, Sarah Smith held positions (either directly or indirectly) in any of the securities referred to in this article

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World News – US – SNDL Stock: Why Reddit Play Sundial Growers Is Crashing Today