What happened Shares of Canadian marijuana company Sundial Growers (NASDAQ: SNDL) were down more than 7% at Monday's lows, and were 3.6% below Friday's closing price as of 2:15 p.m. EST. At that time, the stock was trading at $1.50 per share, right at the exercise price of new warrants the company just announced it was issuing. So what On Friday, Sundial announced that more than 98 million warrants to purchase common shares at prices of $0.80 and $1.10 per share were being exercised, and the company was issuing the same number of new warrants at the $1.50 exercise price. The exercised warrants brought gross proceeds of $89.1 million to the company. The newly issued warrants could bring it another $147.5 million. Image source: Getty Images. Now what The proceeds from the exercised warrants mark the third capital raise this month for Sundial. Shares are currently up more than 20% in February, but are still down 50% from the month's highs on Feb. 10. The company's net cannabis revenue dropped 36% sequentially in the third quarter, which ended Sept. 30. Its adjusted EBITDA loss increased by 13% in that same period. Some of the raised money is going toward a strategic investment Sundial announced last week. It took an 18.5% stake in Canadian edibles producer Indiva with 22 million in Canadian dollars. Using freshly raised capital to invest in the business could be good for shareholders, but the continued flurry of dilutive offerings could also be worrisome for the still-unprofitable company. 10 stocks we like better than Sundial Growers IncWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Sundial Growers Inc wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source