Cannabis Stocks with Heavy Dilution Risk

Cannabis operators face structural financing constraints that don't exist in other sectors. Federal Schedule I status keeps most US operators out of conventional credit markets: banks won't lend, the SBA won't guarantee, and the major credit-card networks restrict transactions. The result is that ongoing operations have to be funded by repeated equity issuance — share counts compound year over year even when revenue grows.

The pattern is visible across the sector: Tilray, Aurora, Canopy Growth, Cronos, SNDL — all have multi-year share count growth that materially exceeds revenue growth. Reverse splits intermittently reset the share count optically without changing the underlying issuance trajectory. The 5-year picture for legacy public cannabis names is 90%+ permanent capital impairment for early shareholders.

DredgeCap's dilution score reflects historical share-count growth plus currently-outstanding dilutive instruments with their disclosed conversion terms. See methodology for the full rubric.