Shares of Canadian cannabis company $Sundial Growers(SNDL.US)$ traded about 19% higher on Friday.
What Happened:
The retail-investor-favorite company reported third-quarter net income of CAD 11.3 million, compared to net loss of CAD 71.4 million in the year-ago period.
Net revenue from the cannabis segment for the quarter was CAD 14.4 million, up 12% from the year-ago period.
Adjusted EBITDA for the quarter was CAD 10.5 million, compared to adjusted EBITDA loss of CAD 4.4 million last year.
In addition, Sundial Growers said its board of directors has approved a new share repurchase program that authorizes the company to repurchase up to CA$100 million worth of its outstanding common shares.
Why It Matters:
Sundial Growers is a frequently mentioned stock on Reddit's r/WallStreetBets forum that has 11.1 million members.
The retail investment forum is best known for driving up shares of heavily-shorted companies such as $GameStop(GME.US)$ and $AMC Entertainment(AMC.US)$ earlier this year.
A post on the forum said it was "high time" to invest in cannabis stocks, noting that cannabis companies are showing improving balance sheets, while "real progress" was being made toward legalizing cannabis in the United States.
Sundial's shares peaked in February amid heightened retail interest, but have fallen notably since then.
About 14.4% of Sundial's float is held short, as per the latest available data from Yahoo! Finance.