They say the best way to rob a bank is to own one. Turns out that’s true for weed farms, too.
I came across an interesting piece of info deep in Sundial Growers’ financial statement. Two employees have taken out loans totalling $200,000 (CAD) from the company at almost no interest.
But first, if you’re not familiar, what is Sundial Growers? The Canadian cannabis company is a favorite of Reddit’s Wallstreetbets, but it’s losing a fortune and may not be around much longer (more info on that here and here).
These employees (presumably top executives, not low wage bud tenders) got these loans at between 0 and 1.5% interest. See this section of their financial report:
Good luck finding a personal loan at a bank that cheap. If a bank won’t loan these guys money at such low rates, why should the shareholder? This is a rip off for shareholders.
This is particularly egregious in a company that is losing a fortune and could be out of business soon. When employees are in danger of losing their jobs and the company is in danger of losing 100% of the shareholders’ money (the usual outcome in bankruptcy), low interest loans to insiders are particularly gross.
I’d avoid this stock like the plague. But do consider applying for a job there if you need a cheap loan! 🙂
For more about another Wallstreetbets favorite, Gamestop, check out this post.
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