What happened

Shares of Sundial Growers (SNDL -1.19%) were down 2.4% in midday trading Wednesday as the market awaits the release of the cannabis producer's second-quarter earnings report. Sundial is scheduled to issue its financials tomorrow after the markets close.

The marijuana company remains the fourth most held stock on the Robinhood Markets stock trading platform.

Farmer examining a marijuana plant.

Image source: Getty Images.

So what

A beneficiary of being welcomed as a meme stock earlier this year, Sundial quickly rose to stunning heights in February before succumbing to an equally spectacular flame out soon after. Even though it remains nearly 500% above the level it was trading at late last year, there was little cause for its meteoric rise -- and that it trades once more below $1 per share indicates investors who bought in on the way up will have a long wait before breaking even.

Because Sundial has a history of significantly diluting its shareholders in a bid to raise cash (over 1 billion new shares have been issued in the past year) the chance of ever producing earnings per share is faint. 

Moreover, its sub-$1 stock price increases the likelihood of a delisting from the Nasdaq stock market, unless it engages in a massive reverse stock split to shrink the pool of outstanding shares.

Now what

Following a surprise first-quarter earnings surprise that didn't change the market's dour outlook for the company, it may take more than even a sales and profits beat tomorrow to lift this marijuana stock out of the doldrums.