- Canopy Growth (TSX:WEED; NASDAQ:CGC) intends to consolidate its shares on a 10-for-1 basis to reach the Nasdaq’s minimum US$1 bid requirement
- Post-consolidation shares are expected to begin trading on the Nasdaq and TSX as of market open on Dec. 20
- Canopy Growth is a North American cannabis and consumer packaged goods company
- Canopy Growth stock (TSX:WEED; NASDAQ:CGC) is down by 76.40 per cent year-over-year and by 97.76 per cent since 2018
Canopy Growth (TSX:WEED; NASDAQ:CGC) intends to consolidate its shares on a 10-for-1 basis to reach the Nasdaq’s minimum US$1 bid requirement.
The consolidation, subject to TSX and Nasdaq approval, will become effective on Friday, with post-consolidation shares trading on the exchanges as of market open on Dec. 20.
Fractional shares will be considered tendered for cancellation by the registered owners for no consideration.
Trading symbols will remain unchanged, though they will be classified under a new CUSIP number: 138035704.
“By implementing this share consolidation, Canopy Growth expects to regain compliance with the Nasdaq’s bid requirement and further support the marketability of the company’s shares,” Judy Hong, Canopy Growth’s chief financial officer, said in a statement.
The move is the latest in a number of efforts to change the company’s unprofitable ways – including asset sales, debt reduction, and a renewed focus on medical cannabis – as it adapts to steep competition and overproduction in the Canadian cannabis market, and the glacial pace of legalization in the United States.
Canopy Growth is a North American cannabis and consumer packaged goods company. Its brands include Doja, 7ACRES, Tweed, Deep Space, Storz & Bickel, This Works and Martha Stewart CBD.
The company is positioned to capitalize on mass U.S. cannabis legalization through its rights to Acreage Holdings, a vertically integrated multi-state cannabis operator; Wana Brands, a leading cannabis edible brand in North America; and Jetty Extracts, a California-based provider of high-quality cannabis extracts and clean vape technology.
Canopy Growth stock (TSX:WEED; NASDAQ:CGC) last traded at C$0.93 per share. The stock is down by 76.40 per cent year-over-year and by 97.76 per cent since 2018. Despite this tumultuous fall, there are reasons to be optimistic about the company’s future.
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