Gran Colombia Gold (TSX: T.GCM, Stock Forum) shares sank 38% to $2.13 on Wednesday. On Tuesday of this week its stock price was off 17% after its shares began trading following a 1-for-25 reverse split.
The stock’s steep sell off is most likely the result of its shares being removed from the Market Vectors Global Junior Gold Miners index. On the date of their latest review, Gran Colombia fell below the minimal market capitalization threshold of $75 million.
Based on the latest public disclosure, Gran Colombia’s weighting in the index represented approximately one million, or 25 million pre-consolidation, common shares.