market correction The stock is getting close to the pre-reverse split price of around $2.00 it has given up most of the price increase of 3 times in a very short time. Maybe the stock would have done much better if they had not increased the price so high to drop back again. History shows that reverse splits are not good for the share price.
The whole sector is correcting and no one knows where the bottom is. Now if the share price drops below US $1 will they do another reverse split. This company is burning too much cash and there will be little tolerance for that in the current environment. Institutions are trapped in illiquid stocks. Sundial is sitting on huge losses on their investment. What are they going to do? Put more money after bad investment? They are trading at $.48 and also need a reverse split too for their listing. Maybe at a certain price, they may pick up the assets when the company runs out of money or have limited options of raising money in the market. They should put their representative on the board to protect their investment.
There are others that were paid in shares. There could be a hold period on those shares. What are their plans for their shares?
They already have an expensive debt of $40m which in my opinion was a huge blunder. The next qtr results will be interesting to see what happened to the cash they had. Debt and a big burn rate are a bad combination.
Delayed market book. The total bids are less than 100k shares. Hit a low of $2.32 today and bounced back somewhat.
