WEED May Need to Scrap USA Deal or be De-listed from NASDAQ02:50 PM EST, 11/09/2022 (MT Newswires) --
Piper Sandler on Wednesday noted Canopy Growth Corporation (TSX: WEED and NASDAQ: CGC) intentions to push the boundaries on how it can operate and remain listed on a major exchange appear to have taken a major hit, as NASDAQ objects to its plan to consolidate US plant-touching revenues and earnings into its NASDAQ listed entity.
In a proxy filing, Canopy indicated that "Nasdaq has objected to Canopy consolidating the financial results of Canopy USA in the event that Canopy USA closes on the acquisition of Wana, Jetty or the Fixed Shares of Acreage. Nasdaq has proposed that such consolidation is impermissible under Nasdaq's general policies."
Piper Sandler believes that this means Canopy must either give up on this deal or be de-listed from NASDAQ, and the company has indicated that building out its US business is its priority, though delisting could drive material capital outflows.